Switch is a DEX that's actually Decentralized.
About a week ago, Binance (officially) stopped offering services to residents of the United States; this restriction is common among centralized exchanges due to the SEC’s unclear and undecided stance on most utility tokens. Soon after, strangely, Bancor followed in Binance’s direction and also ceased services for US residents—Bancor is meant to be a decentralized exchange!
Popular decentralized exchanges like DDEX and Bancor aren’t actually decentralized if they blacklist a certain region’s IP addresses. Additionally, other claimed decentralized exchanges, including the market leader IDEX, are considering to place KYC requirements on users, and this too could lead to subsequent blacklisting of regions. One of the key points of decentralized entities is that they are open to access to all. With such usage limitations, supposed decentralized exchanges are strongly tilting towards being increasingly centralized month after month.
While several decentralized exchanges are becoming or have already become centralized, an exchange backed by John McAfee, one of the biggest supporters of decentralization, has retained its decentralized state.
Genuinely Decentralized
SwitchDEX.ag, which is a part of the Switch.ag ecosystem, remains an Ethereum-based decentralized exchange that neither blacklists any IPs nor mandates KYC for its users. While mounting pressure has caused other DEX operators to bend, Switch has remained decentralized; this shows that the other claimed DEX weren’t decentralized to begin with as there’s clearly an operator who can mandate operational adjustments at will.
While most ERC-20 tokens are primarily traded on centralized exchanges, some portion of the market volume is allotted to the major DEX. However, said DEX are only placing a façade of being decentralized; i.e. DDEX charges listing fees and blacklists IPs, IDEX has controlled listings, and others either blacklist IPs or require KYC. The volume allotted to these exchanges is often driven by members of the community who seek to tilt away from centralized exchanges, but they are being deceived as the title of decentralized isn’t true to most DEX.
On the other hand, Switch does not charge and control costly listings as anyone can connect a smart contract of any ERC-20 token, nor does it blacklist IPs or mandate KYC requirements. Moreover, the exchange’s smart contract-stored revenue earnings are distributed to the platform’s token holders. Thus, the community is the complete operator of Switch as it’s the community that can list any token and it’s the community that claims the exchange’s fees. Thus, Switch genuinely encompasses the principles of a decentralized exchange; this is a standard unmet by other DEX in the industry.
Reaching the Wider Community
Decentralized ecosystems needn’t be limiting. A common defense by highly centralized DEX is that their centralized state is necessary to accommodate new market entrants. However, this is disproven by the operation of the simple token swap platform used by Switch.
A purely decentralized exchange can be a bit difficult to manage by new market entrants. To ensure that the decentralized state of trade is not limiting to any members of the decentralized community, whether they be veterans or novices, Switch ecosystem’s Switch.ag platform offers a more convenient way to swap tokens than the UX available through the typical order book.
It’s imperative that the users who utilize DEX for the sole purpose of advancing the decentralized state of trade recognize that most DEX are actually not decentralized at all. Instead, it’s best to highlight those platforms that are genuinely decentralized and have been designed such that they forever maintain their decentralized state.
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Hi @hatu, thank you for helping us understand certain things on some platforms, how and why they should work and we can learn where to go in the future with other platforms, thanks...
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It is always great reading your article to grab something
I do not understand @hatu friend, if they are decentralized because they restrict countries for one reason or another, it should be the opposite...
Dex are getting more popular
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doesn't this already exist through etherdelta? do we really need more exchanges with no volume...
FD and ED do not distribute fees to the community.
I’m such a silly beginner that when I first read the post tittle, I thought you were referring to this 🙈https://m.twitch.tv/
Close enough 😂
Haha, I could see people falling for that.
Thats Magical!
Oh Radical!
That's Amazing!
DEXes rock
Amazing
1,2,3, gute laune
Congratulations @hatu!
Your post was mentioned in the Steem Hit Parade in the following category:
Good opportunity for us. Thanks for this post.
A good read!
I have been meaning to get move my activity here. Thank @hatu.
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Your post is very informative and educative. Taking your time to explain all there is and the advantages of dex to some of the new users is worth commending.
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@hatu, It's always painful to see that exchanges are wearing False Mask and when time comes they are reflecting that they are Centralised system in all aspects.
Definitely Decentralisation is the core requirement and only this way everyone can partiticipate effectively. Stay blessed brother.
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Very good information, thanks for this post, I will follow you. Good day.
It's always sad to see "decentralized" things turn out this way. :/
It's also great to see how scared countries' governments are getting over cryptocurrency to where some are outright banning it and others are trying to tag so many taxes and stipulations onto them.
Crazy to see the power behind cryptocurrency!
Hopefully we'll see some new exchanges arise, that are trustworthy, that can take the baton and finish the race that some of these started, but gave up on. (Or gave into pressure/harassment/the unknown, or just couldn't hack it.)
I feel like the more quality exchanges out there, the better for us all.
When there's not a healthy competition amongst them, well, we all know what that results in.
Not a great first impression: I go there now it's down for maintenance.
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