folder Filed in Analytics

Decentralized and Semi-Decentralized Crypto Exchanges: Features and Abilities

Analytic market research by SWAP.ONLINE (April, 2018)
Vladislav Sopov comment 0 Comments

This post is also available in: Русский (Russian) Français (French) العربية (Arabic)

Decentralized vs. centralized exchanges

It’s the time to decentralize

Up to the nowadays, the world of cryptocurrencies has been meeting one but seemingly overwhelming contradiction. Basic, if you will, philosophical, principles of cryptocurrencies  – anonymity, independence, equality – remained still only conditional. Even freshmen, who bought their first bitcoins during the market hype of December, 2017, listened to the stories about ‘chinese servers’ all the crypto traders’ data stored on and all the operations executed through. More experienced players of the market saw the things clearly: centralized exchanges’ servers became the targets of the multiple thefts, cyber attacks as well as by the admins’ frauds and scams. It needs to be mentioned, that it occured in 2016, in 2017 and 2018 – nothing changed as hackers upgraded their professional skills neck and neck with the technical advance of the exchanges. The ‘Holy Grail’ promises of the admins announcing compensations, lost tokens’ tracing, new cybersecurity systems were worthless: the traders remained the only victims of the services versus hackers fights.

Centralized exchanges became a brake on cryptocurrencies development. If 2017 was the year of ICOs, 2018 will be the year of decentralization.

Decentralized exchanges or DEX are the real solution of the problem, brand-new breakthrough mechanism. These systems allow traders to make and take the offers directly to each other without the united center, without data storage and middlemen. Based on most advanced technologies (0x, Plasma, Atomic Swaps et al.), they recover the initial value of cryptocurrencies as really anonymous, independent and free-to-use mean of payments. By the way, DEXs still are not able to reach the trade volume of the centralised services: it’s really the technology of tomorrow. Besides the fact, some old exchanges traced the new trend and started to mask their out-of-date technologies by the words ‘hybrid’, ‘semi-decentralized’ ensuring the customers that only uncritical part of infrastructure is centralized with the purpose of the operational speed raise.

In this context,  it is very important to understand, how the DEXs are entering the market? Where do they find their clients? Which amount of transaction fee do they offer to traders? Which services are offered to businessmen?

SWAP.ONLINE captured this market at the time of birth.

SWAP.ONLINE analysts finished the research of the decentralized and hybrid exchanges market in the first half of April, 2018. We tried to compile the commercial features of the services, the most important facets of client policy, offers and abilities, roadmaps and SMM practices. The outcome of the research is published in free Google Spreadsheet:

. Feel free to use!