Just by the presence of cryptocurrency, blockchain and decentralized technology are pieces of evidence of the world’s insistence for decentralization. As well as establishing the likelihood of a new model of the financial system and investment parallelisms, the world is indeed aiming for decentralization.
The principle which displays the possibility of the presence of a structure that is not controlled by no one that is 100 percent transparent, unfastened and, furthermore, is fully protected. This is conceivably what the forthcoming system will eventually look like.
Even though the biggest betterment managed by Bitcoin is the level of decentralization, the question that may be put to the table is the level of decentralization it provides and the lingering thought of the general conditions of current global cryptocurrency related crimes.
How secure is secured?
The customary conditions to characterize if a project is decentralized are censorship-resistance, having no fear of being regulated by any governing body and impunity to domineering adjustments.
In the big picture, the rule of conduct does seem to accomplish both of these conditions, but when you begin to analyze its humdrum affairs in the market, one can develop qualms questioning this status.
Even though that the blockchain technology holds its ground in keeping out governments and regulators from contaminating the exchanges, there are still companies like cryptocurrency exchanges that act as a go-between when carrying out Bitcoin transactions.
Centralized Exchanges
Pros
Provides variety of services but at the same time takes out certain freedom.
Cryptocurrencies are held in supervision to make it painless to exchange them and good for those who don’t want to have the responsibility of looking after their digital currencies.
Wallet balances are automatically adapted to reflect in the crypto market, can execute splits on their own and retains custody when SegWit occurs.
Due to many orders, service provided can be at lower costs.
Cons
Big possibility your cryptocurrency will be compromised or confiscated by hungry hackers.
The fate of your Bitcoins relies on the executive decisions of leaders.
Decentralized Exchanges
Pros
Big on security and reliability exchanges running through hundreds of nodes which means no downtime and enduringly secured depository of your private keys.
Free from controlled government and P2P protocols
Cons
Can only convert cryptocurrencies whereas centralized exchange can convert crypto to fiat and vice versa.
Currently, liquidity is commonly thought to be poor in decentralized exchanges, because of nearly scarce market-makers.
Decentralized exchanges are generally more costly and complex to use right now.
The user interface isn’t user-friendly, and they are more of an intellectual deed than an ideal tool, a lot has to change before they can properly compete with centralized exchanges.
Still, with the technology fast evolving and new quick fixes surfacing, a shift in user preferred choices might be up in no time.
Watch out for Decenternet, (a.k.a. Dnet) is an alternative P2P permanent hyperspeed neutral decentralized internet infrastructure platform solution unbound by politics and oppression.
Once Dnet is out, it can’t be stopped from spreading. It is cheaper, much faster, proliferates net neutrality, protects your privacy and removes the influence of corrupt intermediaries without having to ask for permission from any central organization.