#cryptocurrency Exchange: A DEX Offering The Complete Solution
▻https://hackernoon.com/cryptocurrency-exchange-a-dex-offering-the-complete-solution-6b7386a8c07
In centralized cryptocurrency exchanges, orders and trades are recorded off-chain on a private database. While this solution is used in the mainstream financial world, it creates, in the cryptocurrency market, counterparty and operational risks such as hacks and thefts (i.e. Mt. Gox and Bitfinex scandals).Also, centralized exchanges are more vulnerable to government censorship. Exchanges can easily have their operating licenses revoked and their funds seized. There have been several instances in the past, such as in India and China, where governments have banned and forced exchanges to shut down.Having control of user’s assets also means that they can impose their own terms on block users assets or accounts without notice. Not to mention manipulating trading orders and wash trading (...)
#decentralized-exchange #cryptocurrency-exchange #privacy #bitcoin