In an industry built on an ethos of decentralization and the empowerment of individuals, where the key idea is that each and every person should have control of their own wealth and begin acting as their own bank, we've seen centralized custodial exchanges lead the charge up until now.
Now, as the industry continues to develop ethos, we're seeing centralized exchanges beginning to adopt more properties of decentralization.
As centralized exchanges begin to recognize the benefits of decentralizing, the end result is a stronger, more trusting consumer and industry.
Customers can instantly interact with multiple exchanges without waiting to transfer funds from one exchange to another.
The widespread use of these exchanges has yet to reach the majority of users, as there is an entirely new learning curve in getting accustomed to such platforms.
The lack of users equates to a lack of liquidity, so it's important for exchanges to attract more users or to provide liquidity from other sources.
These exchanges often rely on a blockchain network for settling trades.
Even if millions of users were to switch to a decentralized exchange today, some exchanges wouldn't be in a position to adequately handle the demand.
Exchanges need to be able to handle hundreds, if not thousands, of trades their users make each second.
Different order types, from basic limit orders to more advanced order types like Immediate or Cancel orders, and Fill or Kill orders are often missing on decentralized exchanges.
Why Centralized Exchanges Are Decentralizing
Publié le Jan 19, 2020
by Cointele | Publié le Coinage
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