Is the decentralization of the decoupling on the Korean line? Is it a pseudo-proposition?
Following the April 23rd, Binance was launched on the basis of the Binance Chain's Binance Decentralized Exchange (DEX), and the shared finance was informed that the currency was DEX. Said that the currency security DEX Korea station is online.
It is reported that the coin-based DEX is an unmanaged decentralized exchange that operates on the Binance Chain blockchain protocol, allowing users to fully control their own funds while trading encrypted assets. The transactions are all carried out on the chain.
From crowdfunding projects BTT, Fetch.AI to the recent currency chain and decentralized exchanges, Coin Security has launched so many new projects in the current market relative to bears, comparable to the "attack giant".
In this regard, He Yi, co-founder of the currency, explained that we all know a theory called "the pig on the vent."
"When the wind is coming, everyone is chasing. At this time, many projects will eventually be turned off or die. But the feng shui has been able to stand in this industry. I think it is the real person who can be bigger and stronger. "He said.
Previously, Chan Chang’s CEO Zhao Changpeng also said that the Binance DEX team has always been committed to the ideas put forward by cryptocurrency community developers to maximize the speed, scalability and efficiency of the platform. We are excited to introduce this platform to the community, and we encourage more projects to explore the currency chain to benefit from its speed and advantages.
Is DEX "decentralization" a false proposition?
In the field of blockchain, the exchange is the "land of the military." At present, several large exchanges on the market are all centralized, such as fire coins, gates, coins, OKex, ZB, etc.
However, for traditional centralized exchanges, we often hear about the exchanges being hacked and hacked. Therefore, users have become the industry consensus on their spit.
Compared with the centralized exchange, the decentralized exchange transaction, because of its decentralized way of hosting, makes the server difficult to be hacked, ensuring the security of digital assets, and also avoiding the abuse of user assets and being run away. risk.
Such trading platforms, currently on the market are mainly 0x, Kyber, Airswap, IDEX, GDEX, as well as stex, Loopring, Etherdelta and so on.
In fact, Zhao Changpeng, the founder of the currency, was not optimistic about DEX.
He wrote in the article "Centering vs Decentralization": "The market has already voted with the foot, the centralized exchange is more popular, and its trading volume and liquidity are much higher than the decentralized exchange. ”
“In many aspects (reality), absolute decentralization cannot solve every problem. In contrast, it is more practical and beneficial to raise the level of decentralization through multiple small steps.” Zhao Changpeng admits in the text. .
At the Coin Safety Summit held in Singapore on January 22, 2019, the company announced plans for Binance Chain and Binance DEX. A month later, the coin chain and the coin DEX went online to the test network. According to the announcement, the coin security DEX will run on the currency chain.
However, during the operation, many investors questioned the “decentralization” of DEX, and even felt that the coin DEX was just wishful thinking and self-deception.
It has always been a matter of debate about whether the development of future exchanges is central or decentralized.
In 2018, CoinTiger founder Frank Ling expressed his attitude towards decentralized trading in an interview with CoinVoice.
He said that I personally think that decentralization itself is not suitable for the kind of high-frequency trading, it is suitable for some things with high net worth and large transfer, non-coin. Asset transfer and trading, there are some large amounts, suitable for decentralization to solve, because it can indeed solve some of the problem of trust.
Coinbase co-founder Fred Ehrsam also pointed out that DEX is flawed. DEX requires users to manage their own funds and ensure the security of related tools, but the timing is not yet mature. At present, DEX has low throughput and faces the same scalability challenges as its underlying blockchain, so companies that don't want to wait too long and pursue high throughput will be more decentralized for quite some time. Exchange.
“Coin-Dex is basically a copy of BitShares.” One investor believes that the coin-based DEX is based on the development of the coin-based public chain, and the model is similar to that of BitShares, and it is not technically innovative. “The real meaning of coin security DEX is not big, more is Shantou.”
On the transaction amount, DEX is also in a weak position.
According to statistics, the daily trading volume of various types of DEX in the market is only 0.01% of the centralized exchange.
At the depth of the transaction, more than 50% of the tokens in the coin DEX have no transactions within 24 hours, which means that if the user orders the order, it will not be sold.
“Even if Zhao Changpeng said that the TPS of the coin-based DEX can reach thousands of pens, the depth is the key to the transaction.” Zhu Yun, head of a quantitative fund, explained that “the general problem of decentralized exchanges is insufficient depth, even though the currency has DEX The currency is endorsed, but at present it is not very effective, and the depth is not enough."
With the release of the currency chain and the currency DEX and the industry's “decentralization” label for the currency security DEX, the currency platform BNB seems to have also been affected.
BNB continued to decline since April 23, as of press time, the decline has been nearly 8%, the price decline is also nearly 10 yuan.
Author: Sharing Finance Ma Ming Editor: Alian