Even with the current down trend of the crypto market, it is without doubt that the level of adoption and awareness has been on the increases since the year 2017. More and more project have sprouted up with different uses of blockchain(through their tokens) and other problems the projects solve with crypto currency. And therefore several investors and companies have been attracted to the use of crypto or digital assets as the future it holds is very bright. In the year 2017 alone the markep cap of cryptocurrency assets grew more than 700 Billion $, though most of the highs was because crypto assets were just getting known by a lot of people and they were getting in on it very fast. Just as I said earlier do the capitalization of the market has greatly reduced, the level of adoption or awareness has not declined whatsoever. Nowadays so many people now earn a living either trading cryptocurrencies or doing some other task online. For this reason the Deex exchange was created, since the future lies in crypto, there has to be efficient trading platforms that can meet up to the needs and demands of crypto users. Over the years due to reasons like liquidity, several centralized exchanges has been favored over decentralized exchanges, but this doesn’t change the fact that centralized exchanges go against the first aim of blockchain technology and cryptocurrency which is decentralization.
What is a centralized and decentralized exchange
《CENTRALIZED EXCHANGE》-:- Thisis an exchange fully owned and controlled by the set of individuals that own the exchange. These individuals make most of the decision as consigns the exchange and the users have little or no say in the affairs of the exchange. Also the users of the centralized exchanges most store their digital assets on the exchanges wallets.
《DECENTRALIZED EXCHANGE》 :- No one has total control on decentralized exchanges, and the users have equal control and rights over the exchange . Also the assets of users are stored in their personal wallets and they may choose to import it into the decentralized exchange.
Before I go any further I would love to take a look at the demerits of centralized exchanges and the level of damage they bring or may bring to the crypto space.
《DEMERITS OF CENTRALIZED EXCHANGES》
• 《SECURITY》 :- This is the most vital part of cryptocurrency assets, the world has gone digital, and so has the scammers and hackers. And when ones asset is not properly secured, this scammers or hacker can easily do away with ones assets. This is a pain because the security on centralized exchanges are very questionable, because the assets are stored in a centralized mode of storage. When a hacker makes finds his way through the security of centralized exchanges several assets of several crypto holders are at risk of getting lost. For this reason decentralized exchanges perform better on terms of personal security.
• 《COMPETITION》 :- centralized exchanges tend to compete with themselves in terms of getting richer, they in severe cases you also here of frauds and missing funds of crypto holders
• 《SANCTION ISSUES》 :- different Governments put some level of restriction with their citizen from using some particular exchanges. Take for example at a point, users of poloniex Exchange in the Us were not able to withdraw their funds from the exchange
• 《PROFIT ORIENTED》 :- Most centralized cryptoecxhanges were created mainly to return large chunks of profits to the owners or group of owners, and as a result of this the cost of transactions on this centralized exchanges are always expensive. Also, this exchanges charge very high listing fees to list other tokens on their exchanges , doing a way with huge some of money without tendering the right amount of services to its users .
This stated issues have been a consistent issue with centralized exchanges over the years and for this reason the deex exchange platform with its decentralized protocol decided to put a stop to this inadequacies. The deex decentralized exchange was created based on the bitshares 2.0 functionaly and thereby solve the inadequacies faced by the centralized exchanges. The Deex exchange possesses several functionalities which I will be bringing in my next article for you all viewers to have a good look. Do wait for my next article on the prestigious deex exchange platform, till the visit the following links to get accustomed with the deex exchange.
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