Exchange of the past two years to the center of the development of more and more heat, the year 2019 is known as the first year of the exchange to the center, to the center of the exchange is bound to be a major breakthrough. From the current list view, ETH, to the center of the most public exchange EOS two chains, while also being high hopes.
The current mainstream currency exchange primarily safety, fire coin, OKEX, Bitfinex, etc., more than 90% of digital currency assets are traded on exchanges in these centers, these exchanges while also providing sufficient assets for a variety of tokens liquidity, the market is indispensable presence.
However, the catch is that these exchanges are centralized, there are some significant risks and problems. This centralized and decentralized model block chain characteristic of a departure from the long term, to the center of the exchange is the future.
Centralized exchange has what the problem? Here we look at:
1, weak capacity to respond to unexpected situations
Center of the Exchange will be a complete account system, including KYC certification, asset charge mention, asset custody, asset liquidation, brokered transactions, there are relatively mature solution, but in the face of unexpected situations are often not well measures to deal with. Transaction system such as tamper resistance is poor, the amount of downtime occurs isochronous transaction huge increase.
Historically these circumstances has occurred more than once, but the problem has not been effectively resolved, when history to reproduce, these problems will still affect people's use, or even result in the loss of assets, missed opportunities.
2, there is always a security risk assets
This can be seen from various currency exchange hackers to steal the repeated occurrence of the event out. From the early Mt.Gox stolen, to bitfinex, coincheck and other exchange stolen, then to the recent currency Bitcoin theft security 7000, have sounded the alarm for the safety issues.
These events at the same time damage the interests of users and the reputation of the exchange, also caused the shock of the impact on the industry. Users of digital assets stored in these exchanges, only to face exchange risk of theft, but also for Exchange "embezzlement" of the possibility of fear. After all, the center of the exchange and not as decentralized energy exchange as a witness innocent, sometimes an announcement said to be stolen, but genuine who knows!
3, there is "impossible triangle"
For users, security, cost and experience are the three most important factors.
Security including asset security, personal information security, transaction security;
cost , including transaction costs, prepaid costs, cash costs;
experience mainly refers to the speed of transactions, smooth operation, easy to use and so on.
For these three, the user wants is high security, low cost and high smooth user experience, but from a practical point of view, even the mainstream exchange, can only do one or two of them. Want a low cost and a good user experience, security can not be guaranteed; want high security, low cost, and can not guarantee the experience; want high security, a good user experience, the cost will go up.
So, we may think that so far the center of the exchange has done good enough, but in fact is not enough. This "impossible triangle" also restricts the development of a centralized exchange, where its limitations, how to break a problem.
4, with the currency and pricing
Centralized decision on currency exchange qualifications, on which currency you want on which currency, audit mechanism varies each exchange, in the middle there is black-box operation. And from the current digital currency market, because of lack of supervision, there is a certain degree of centralized exchange market manipulation, from information asymmetry funds to operate the spread.
Outstanding issues exist which are centers of exchange, these problems also affect the market again and again. Therefore, many users have actually seen the center of the exchange brought a huge risk, many organizations started entrepreneurs to the center of the exchange, in order to solve the problems of the exchange center under the current unregulated problem.
, Decentralized exchange is carried out from the technical point of view directly on the block chain market exchange, digital smart money will be saved on the contract block chain, or directly back to the user's wallet. Both methods currently has, relatively speaking, more secure smart wallet than the contract, in particular hot wallet to use when trading.
For users, the use of decentralized exchange, to ensure relative safety, security and privacy of personal data and assets are well protected. Well, since decentralized exchange has security advantages, users control of their assets, why do not widely use it? The following main reasons:
1, most decentralized exchange high barriers to entry, and less liquid, there is no legal tender payment;
2, to center the exchange of technology is still not mature enough, user education is also very lack;
3, the most decentralized Exchange user experience is poor, not easy to operate;
The above problem is an important factor hindering the development of decentralized exchange, the same time, across the chain is also troubled by a major problem to the center of the exchange. Only infrastructure across the chain well, decentralized exchange might develop together. After all, the exchange of tradable assets is very important for users, if the user does not find the property you want, it will be lost.
Currently Ethernet Square, the emergence of more and more decentralized exchange on EOS, number one is whale Exchange.
From experience, the current whale Exchange has been achieved across the chain, can be traded Bitcoin, Ethernet Square, USDT and other mainstream assets, became more open USDT trading right. Whale Stock Exchange also opened a legal tender OTC, users can use coins to pay, very convenient. From a user experience point of view, the use of whale Exchange is very smooth, easy operation, faster transaction speed, with the center of the currency exchange security is almost the same.
We can say that the process of development where the whales cross, has overcome the problem most decentralized exchange, to achieve a variety of technological breakthroughs, far ahead of peers in the industry. For the current whale Exchange, the greatest shortages should be the amount of users. According to statistics, at present 99% of the trading volume on the market in the center of the exchange, turned around and how these users can use Exchange to the center for entrepreneurs, it is a big challenge.
Lack of user education, user experience why give up a good centralized exchange is the problem with all decentralized exchanges need to think about. Of course, with the development of the block chain technology, decentralized exchange is seen as the future trend, more and more people began to try to use the Exchange to the center. For now though, not many people use, but with the rapid development of decentralized exchange, will gradually become the mainstream, the center of the exchange will be gradually phased out.
Transition from the old, decentralized exchange will prevail over the center of the exchange, which is the inevitable trend of the times!