Altcoins Crypto

Dozens of Decentralized Exchanges Making Their Mark on Cryptocurrency Industry

JP Buntinx | June 5, 2018 | 2:00 pm
DEX
Altcoins

Dozens of Decentralized Exchanges Making Their Mark on Cryptocurrency Industry

JP Buntinx | June 5, 2018 | 2:00 pm

The world of cryptocurrency exchanges will undergo some big changes. Centralized services remain popular, but decentralized solutions are gaining more traction. inDEX is an interesting list of various decentralized exchanges (DEX) on the market today.  As such, a few key statistics are worth looking into.

A Booming Business for DEX

The decentralized exchange ecosystem is still in the early stages of development. While a few products and solutions exist already, there is still plenty of work to be done. Having more competition in the DEX industry is never a bad thing. Over half of the platforms tracked by inDEX are still waiting to go live at this stage.

Among those projects, we mainly see new protocols which can make a positive impact moving forward. Unlike centralized trading platforms like Coinbase and Bitstamp, these new protocols are very different. In most cases, there will be no need to register for an account, nor will users perform a KYC procedure. Additionally, there is no limit as to which trading pairs can be created across the various decentralized exchanges.

One thing to keep in mind is how most platforms focus on ERC20 tokens in the first stage. That is not entirely surprising, as these tokens are in high demand at all times. Moreover, they allow for some very intriguing trading pairs which wouldn’t be possible across other platforms. Given how most centralized exchanges hold off on adding these tokens, a DEX can make a big impact.

Expanding the Decentralized Exchanges

It is expected some of these decentralized exchanges will focus on other currencies and tokens as well. Bitcoin, NEO assets, and other currencies will all be supported eventually. Very few protocols are looking to take the plunge in this regard, though. A very interesting situation well worth keeping an eye on as more time progresses. Some are already operating with well known tokens such as Stellar Lumens (XLM), OmiseGO (OMG), Bitshares (BTS), Komodo (KMD), Decred (DCR), Waves, Kyber Network (KNC), NTX and 0x. 

The big question is whether or not decentralized exchanges can rival traditional solutions. Consumers demand convenience first and foremost. Additionally, a DEX may not necessarily support fiat currency transactions either. As such, there is still a lot of work to be done before DEXes will make their mark. They offer advantages, but also some drawbacks.

Integrating all of these protocols will also be somewhat challenging. Not every blockchain may accommodate decentralized exchanges or their protocols as of right now. Collaboration will remain key in the world of cryptocurrency at all times. If these projects can focus on other currencies and even fiat currency support, an interesting future lies ahead. These are still the early stages of decentralized exchanges, after all.

 

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