More Industry Leaders Move to Decentralised Solutions
By Luke Flowers – Cryptocurrency Expert
Built on an ethos that focuses on the protection of assets, transparency, financial inclusion and legislative clarity, more cryptocurrency trading exchanges are beginning to implement properties of decentralisation. As more exchanges begin to integrate the advantages of decentralising, the outcome appears to be a more trusting consumer and financial sector.
The decline of trust in centralised bodies and establishments has facilitated the growth of blockchain technology in hopes of reshaping retail relationships with future financial ecosystems. Leaders in the industry are making deliberate choices that will modify the meaning of trust through new monitoring methods using networks of distributed nodes.
For those who buy and sellBitcoin, decentralisation redefines power and trust. Regarding digital markets, the decentralisation of asset custody also removes dependence on third parties or single entities. For the first time, consumer funds will no longer be stored centrally. The notion enhances security and privacy and is an industry expected to reduce cybercrime and losses by $5 trillion in 2021.
While there are clear benefits to the migration of decentralised systems, there are hurdles facing the space that require urgent solutions. Decentralised exchanges have substantially less liquidity. Widespread use of these platforms has yet to reach consumers and the lack of users results in less liquidity.
Decentralised exchanges also struggle and are confronted by more restrictions when tackling throughput and speed. Blockchain congestion can often cause slower money transfer speeds and delays. In addition, such platforms are only in their early states of design, meaning user experience and features are currently limited. While the shift to a decentralised financial system is underway, conscious steps of innovation and investment need to be taken.