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RE: Centralisation undermines the most fundamental principle of Blockchain technology

in #cryptocurrency3 years ago

That’s a big deal for current exchanges, really. Hackers understand how much they can get from the centralized storages, so they invent new and new attack strategies. Phishing, DDoS, server breakings, etc. I’m afraid of skilled hackers powers, they can get access to giant storages of some exchanges. Decentralized exchanges, on the other hand, are safe but they are still too complicated for regular users. I think that hybrid platforms with simple interface but decentralized algorithms can save us.

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As for decentralized exchanges, they’re pretty simple. Here’s a brief explanation for everybody who can’t open the original link: DEXs aka decentralized exchanges are blockchain-based platforms similar to peer-to-peer systems. They don’t have a single central server. Instead, they use a network of nodes and private wallets of users between which transactions are made. Means, DEXs don’t store money, they just help users to match their buy/sell orders. So hackers can’t steal anything from the website.

I can argue the fact that all centralized exchanges are vulnerable. For example, CEX.IO and Kraken were never hacked for the entire history. And these exchanges are large enough. I even don’t mention local platforms which are designed for specific countries. You can check Bitcoin.co.id review on CryptoHoo (the exchange works with Rupiah specifically) or read other qualified authors to find reliable small platforms. Decentralized exchanges are cool, too, but we shouldn’t blame centralized ones and ignore them at all, I think.

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