| json_metadata | "{"app":"musing/1.1","appTags":["cryptocurrency"],"appCategory":"cryptocurrency","appTitle":"Why we don't have a major decentralized crypto exchange whose liquidity is as good as Binance ?","appBody":"<p>This is a subjective as well as a quatitative type of question as it has many facets to analyse it. But I will say that there is one key aspect which is \"liquidity\" and you may again ask why the liquidity is not there because in a decentralized exchange the objective is oriented around security of fund, decentralization, privacy and it is also distributed and we all know that the blockchains by large have not become that scalable. On the other hand in centralized exchanges the fund is kept in a central account and server and hence it is easy to enhance the liquidity and as it is centralized and as the computation is done througha single point the latency is greatly reduced and hence here the objective is oriented around liquidity, low latency. </p>\n<p>Now it is obvious that the users are still factoring on scalability and latency and hence they are still leaning towards centralized exchanges despite of knowing the risk of single point failure. </p>\n<p>The best way to boost liquidity in decentralized exchange is to establish a bridge between all decentralized exchanges and make them interoperable. Second thing that is needed to be done is to improve the scalability. This thing can really improve liquidity in decentralized exchanges.</p>","appDepth":2,"appParentPermlink":"fkzhl2hgq","appParentAuthor":"iambrave","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}" |
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