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Are Centralised Exchanges Shifting to Decentralisation?

By Harry Biswell – Crypto Consultant

Cryptocurrency trading and traditional financial systems have been forced to find ways to work together, while innovating new features and improving capabilities. At the heart of this discussion is the notion of centralized entities – particularly centralized and/or decentralized exchange platforms.

Those buying crypto promote an ethos of transparency and greater control of the asset by the owner. It is unsurprising, therefore, that we are seeing centralized exchanges starting to implement more decentralized characteristics.

The possible loss of trust and reliability in centralized institutions has encouraged the evolution of blockchain technology. This movement aims to solve and redefine the concept of trust when thinking about the shift towards a new generation and financial system.

The potential utility of this technology is extremely exciting and as more and more unfold in new and different industries, we must remember that a completely decentralized network does not always guarantee security and trustworthiness.

It is important to note that the space and technology is still in its infant years. As more centralized platforms move towards decentralization, the outcome should benefit both the consumer and the space. Promoting asset safety, transparency, and financial regulation and inclusion, redistributes power and allows for more trust for the individual consumer.

Industry experts, who are anticipating a major migration to blockchain technology for many companies within and outside of the crypto space, still highlight 3 main areas which they consider will pose challenges:

  • Liquidity: with a minority of people using these platforms, there can be little liquidity. Exchanges do need to encourage more users
  • Network speeds can be limited on decentralized platforms. This is because they are dependent on the user throughput capability of the protocol
  • Lacking a user-friendly experience and features

As the Bitcoin industry evolves, BC Bitcoin are here to answer questions you may have. You can Buy and Sell Bitcoin, as well as over 115 different altcoins on our platform. Contact your trusted Bitcoin broker today for the best available market rates.

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