Centralization and Decentralization, BDEX or the End of the Century Debate of Exchanges

Time:2019-8-11

There has been a century of debate in the field of digital asset exchanges – centralization or decentralization?

They say that the currency circle is one day, one year in the world. A small move in the currency circle may cause a huge wave between you, or directly usher in an era of change.
So, the emergence of the decentralized cross-chain exchange BDEX, how to judge within the circle, bullish or bearish? Will it bring an end to the century’s dispute between centralization and decentralization? Let’s start with the following aspects:

1. Decentralization – One of the greatest features of block chain technology
When it comes to block chains, it is believed that over 90% of people think of the key word “decentralization” first. The essence of block chain is a decentralized distributed account book or database. It relies on all nodes all over the world to run. Every node has all the data and its status is equal. Any number of all nodes can ensure the normal operation of the system, and there is no one or several central nodes with prominent status.
Through the decentralized structure, combined with encryption algorithm and consensus mechanism, block chains can actually complete point-to-point trusted transactions without the participation of third parties. This is one of the greatest values of block chain technology.

2. Centralized exchanges deviate from the spirit of block chains and have frequent disadvantages.
Centralized exchanges, as the platform of the largest user base in the aggregate currency circle, mostly use centralized servers. But even the leading exchanges such as Yuanyan, OKEx and Firecoin Net still can not avoid the disadvantages brought by centralization. Bitcoin was attacked by hackers and stolen. The whole currency circle was boosted. OKEx and Firecoin Network also frequently sent out negative information such as data fraud.
Centralized exchange centralized custody of a large number of users’assets, internal transactions are not linked, and even use its control of the first-hand data to manipulate currency prices… All these criticisms deviate from the spirit of decentralization of block chains.

3. Decentralized Exchanges Improve the Safety Attributes of User Assets
In addition to the BDEX mentioned at the beginning of the article, the major exchanges, whether under pressure or under the trend of the times, are actually in the layout of decentralized exchanges. So what are the advantages of decentralized exchanges?
In de-centralized exchanges, on the one hand, the public key of the user’s account in the block chain is identity, so there is no need to register personal information with the exchanges, so there is no personal information security problem. On the other hand, the user’s assets are hosted in the intelligent contract. Once the funds are included in the intelligent contract, only the person who owns the private key of the account can access the funds. As long as the user keeps the private key well and is not known by the malicious third party, the security of the funds can be guaranteed. When funds are transferred, intelligent contracts operate automatically according to instructions without manual approval. In addition, in general, if hackers want to steal funds, they need to break through each individual account, which makes the cost and difficulty of hackers’attack soar, and the security of the account improves. Compared with centralized exchanges, the security of decentralized exchanges is much higher.

4. Bottlenecks in the Development of Decentralized Exchanges
At present, the development of de-centralized exchanges is still frequently hindered, because it can not take into account the low technical threshold of centralized exchanges, support for the exchange of French currency, and achieve rapid transaction matching and other good user experience. On the contrary, users need a certain knowledge of public and private key operation. If the private key is lost and can not be retrieved, there may be a risk that the private key is inadvertently leaked and the funds are stolen. And these bottlenecks inevitably increase the number of people looking short on decentralized exchanges.

In summary, the centralized exchange is more in line with the traditional user habits, convenient operation and efficient trading, but there are great security risks in the centralized storage of assets and data. While de-centralization guarantees the security of assets and information, it also raises the cost of education for many users, which brings other disadvantages such as complicated operation, high threshold of use, lack of depth of transaction and so on.
BDEX, the world’s first de-centralized multi-protocol cross-chain trading platform, strives to achieve the experience of centralized exchanges in terms of transaction depth, speed, variety, liquidity, transparency and ease of operation, and achieves de-centralized transactions between traditional exchanges through cross-exchange real-time clearing mechanism. Deep sharing.
Obviously, BDEX is compatible with all the advantages of centralization and decentralization. The controversy between centralized exchanges and decentralized exchanges in this century will probably stop here, and the digital assets exchange will also usher in a new shuffle!