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Description
In this video, Peerplays' Jonathan Baha'i explains why today's decentralized exchanges are not so decentralized.
Many exchanges built on Ethereum, Binance Smartchain, actually rely on centralized entities to carry out trades and safeguard users' funds. Their systems are still, to some degree, controlled by a central organization.
Crypto and Defi are here to truly disrupt the traditional systems in finance, and we are moving closer to this goal, but still ways away from true decentralization. Peerplays is working to become the world's first decentralized infrastructure, giving the power back to the users.
For more information, check out www.peerplays.com
A
Decentralized
exchange,
and
even
everything,
that's
decentralized-
is
still
something
that
the
industry
as
a
whole
needs
to
achieve,
and
it's
something
that
needs
to
be
put
at
the
forefront
of
what
matters
a
lot
of
times
we
like
to
think
well,
we
have
to
start
centralized
and
then
move
towards
decentralization,
but
historically
speaking
in
the
short
period
of
time
that
we've
actually
been
in
this
space.
We've
never
seen
that
happen.
A
Why
are
today's
decentralized
exchanges,
not
so
decentralized?
For
my
background,
I
actually
started
in
a
like
my
my
journey
into
blockchain
started
with
a
decentralized
exchange
long
ago
before
decentralized
exchanges
were
actually
a
thing.
You
know
it
was
a
project
called
bitshares
and
so
bitshares
has
been
around
for
many
many
years
in
the
development
of
trying
to
create
a
solution
to
what
happened
with
mount
gox.
A
For
those
who
don't
know
mount
gox
mount
gox
was
this
terrible
scenario
where,
when
bitcoin
first
was
introduced,
the
central
exchange
was
created
and
it
became
the
most
popular
place
where
everybody
traded
their
bitcoin
and,
of
course,
just
like
what
happens
with
every
single
central
exchange.
It
ends
up
going
down,
everybody
loses
their
bitcoin
and
it
was
in
a
massive
like
it
was
just
such
a
massive
hit
to
the
entire
industry.
A
So
that's
what
happened
with
mount
gox,
so
the
the
project,
with
bic
with
the
project
with
bitshares,
was
the
idea
of
we're
going
to
create
a
decentralized
exchange.
That's
going
to
solve,
centralized
exchange
dilemma
which
is
giving
your
crypto
to
a
third
party,
which
you
should
never
do
and
then
having
to
trust
them
to
hold
on
to
it
for
you,
while
you're
doing
your
trades
and
everything
else
and
hope
and
pray
that
when
you
try
to
take
it
out,
you're
gonna
get
it
right.
A
But
of
course
anyone
who's
had
any
experience
in
the
crypto
space
knows.
The
experiences
will
vary
from
exchange
to
exchange
in
terms
of
whether
you're
going
to
be
able
to
get
your
your
bitcoin,
your
bitcoin
or
any
cryptocurrency
out
of
the
exchange.
When
you
try,
when
you
try
to
request
it,
not
to
mention
the
kyc
issues
and
then
there's
hacks
and
everything
else,
and
it's
just
a
mess
out
there.
Decentralized
exchanges
are
supposed
to
solve
that
dilemma.
A
A
Second,
to
that
some
of
the
dexes
that
are
out
there,
they
tend
to
also
require
a
user
interface
to
use
the
decentralized
exchange
and
that
user
interface.
Unfortunately,
oftentimes
again,
is
a
counterparty,
that's
being
that's
owned
by
a
company,
and
what
happens
then,
is
that
there's
the
possibility
that,
wherever
you
might
be
located,
authorities
can
come
down
on
that
company
and
turn
around
and
then
say
hey.
You
need
to
start
off.
You
need
to
start
doing
kyc
on
these
on
these
customers
that
are
using
your
your
interface
and
the
next
thing.
A
You
know
you're
in
a
situation
where
you
potentially
could
be
locked
out
of
your
funds
again,
because
if
they
control
the
interface,
they
can
control
your
crypto
as
well.
The
only
real
decentralized
exchange
is
where
you
have
control
of
your
keys.
There
isn't
you're
able
to
use
the
you're
able
to
access
the
blockchain
and
the
decentralized
exchange
from
an
existing
interface
that
is
not
hosted
by
a
third
party.
It's
open
and
capable
of
being
hosted
anywhere
in
those
kinds
of
scenarios.
You
have
real
decentralization,
but
right
now
many
of
the
decentralized
exchanges
are
out
there.
A
A
We
like
to
think.
Well,
we
have
to
start
centralized
and
then
move
towards
decentralization,
but
historically
speaking
in
the
short
period
of
time
that
we've
actually
been
in
this
space,
we've
never
seen
that
happen.
It
tends
to
go
centralized
and
because
of
the
hindrances,
whether
it
be
liabilities,
whether
it
be
legal,
whether
it
be
a
lack
of
profitability
really
to
for
the
for
the
company
or
the
entity,
to
move
towards
decentralization.
A
It
hasn't
been
a
system,
that's
really
allowed
for
the
the
people
to
actually
have
input
towards
the
outcome,
and
as
long
as
there
isn't
a
capability
for
everyone
to
participate,
I
don't
think
you're
going
to
be
able
to
achieve
decentralization
as
long
as
you
put
controls
in
place
that
are
going
to
deterministically
leave
people
out
of
being
able
to
participate,
you're
going
to
end
up
with
a
system
where
people
will
feel
that
they
are
not
valued
and
therefore
don't
don't
trust
the
system.
The
way
they
could.