Last year, the centralized exchanges set its foot on the infrastructure road. In less than a year, Binance , OKex and Houbi which recently joined stirred up the trend of exchange’s public blockchain ! The fire of the public chain of the exchange is getting more and more wild. Is this going to crack the future of decentralized trading based on the exchanges’ public blockchain ?
The centralized exchanges may have the determination to become decentralized, but the reality seems much harder than their wishes. According to Jingzhun Study, the total number of decentralized exchanges/currencies that can be found is 44, of which 14 are decentralized exchanges with actual positive online trading volume and 12 of which have been on the transaction agreement.
EtherDelta, Kyber, 0X and Airswap are all decentralized exchanges based on Ethereum, but the user experience is not good. Although NEWDEX and WhaleDEX have improved in speed and experience, their use is limited by the EOS ecosystem. Due to the limitation of performance of public blockchain, these DEX (decentralized exchanges) find it hard to garner users and deliver proper user experience.
So, why are cetralized exchanges taking on the hard road of DEX? Although centralized exchanges are widely welcomed by users because of their ease of use, high efficiency, and the concentration of mainstream digital currencies, behind the scenes are various issues such as transaction fraud, capital security, and hacking.
Mt.Gox, which lost nearly 650,000 bitcoins in total, is enough to prove that centralized trading is unreliable. In the past year, the number of large-scale security incidents exceeded 130, and hackers swept away more than $2 billion. With the increase in the number of cryptos, the demand for crypto conversions and trades are also increasing, raising more challenges and risks for the centralized exchanges given their existing loopholes.
Compared with the centralized exchanges:the risk of being attacked by hackers, the opacity of the transaction process, the risk of cheating, and the control of assets in the centralized exchanges, decentralized exchanges rely on their high security and transaction autonomy of user assets. The advantages of privacy protection and peer-to-peer processing through smart contracts are becoming an important force driving to industry to lean toward DEX.
But how do we really implement that ? Binance is based on the cosmos side chain development. It mainly plays the role of DEX and currency. It has a certain degree of overlap with the current commercial scene of Ethereum, and the business scalability is very limited. The financial public chain of Houbi is more radical, and its mission is to become the infrastructure of global financial services in the blockchain era. To this end, it teamed up with blockchain network startup Nervos, the founding team of the project split off from Ethereum, focusing on the layered technology architecture. But the problem is that the old-fashioned “Ethereum”, which has always been committed to stratification and fragmentation, has not achieved anything. How do we know if Nervos is really good?
Seen form the above, It seems that only when the public chain technology matures, DEX can really come true. Nowadays, we see that the public chain platform is improving in terms of function, performance, stability, cost of use and ease of use, but due to the performance and scalability of the existing blockchain who are mostly sequential in data structure. And the fact that there have not been any feasible and economic cross-chain solution, the decentralized exchange can not replace the centralized exchange yet, and it is impossible to achieve a large-scale outbreak! Most of the public exchanges issued by the top exchanges also can not see the real progress.
In fact, in an era of interconnection today, not everything must be done personally. For the top exchange, in addition to developing the public chain by themselves , there may be another option: to cooperate with the mature public chain. Of course, Binance has already taken the lead in outsourcing, but it chose Cosmos, it seems that the effect is not ideal. Paralism, a digital economic platform based on parallel blockchain development, may be another good choice. The revolutionary parallel chain data structure gives it a native cross-chain solution with unlimited scalability to allow digital asset to interact freely on the chain. Forming a natural good decentralized trading framework. At the same time, Paralism’s self-contained coin-operating function and stable currency function will help to grow an eco-system with various digital assets and communities, hence providing sufficient trading subjects and participants for the decentralized exchange
The digital currency market is surging rapidly, and the blockchain industry is fast. With the strong rise of the Paralism and some other platforms, the truly decentralized transaction will come in soon, and the cryptocurrency exchange industry will face a new round of reshuffle.
Official website： www.paralism.com
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