Cryptographic Security
- As we watch the news of Binance paying the largest fine in US History 4.3 billion dollars, and we see the fall of multiple key figures in centralized cruptocurrency trading, some jump to the conclusion that cryptocurrency is inherently bad.
- But the truth is that the answer is far more complex then simplly crypto bad or crypto good.
- I have been active in this space for six years, and I think that CEXs or Centralized Cryptocurrency Exchanges have been a big positive in the evolution of cryptocurrency as we know it, but they have also been the root cause of much of the negatives as well.
- In regard to centralized exchanges and the role they play in the good, the bad and the ugly which occurs in cryptocurrency, to me there are three basic truths:
- First, Centralized Exchanges perform a critical role in the cryptocurrency ecosystem, the onramp of entrance of capitol into the ecosystem and the exchange of a diverse group of cryptocurrencies for Bitcoin or stable coins like USDT or USDC.
Second, many of the issues with centralized exchanges reflect a lack of regulation, which uses the nouns, verbs and adjectives of this new industry.
Unfortunately, instead of developing regulations and rules specific to this new industry, most countries follow the lead of US Regulators, who depend on regulations written at the end of the Great Depression in the 1920's. A tortured process of applying rules written before the telephone was widely used, and before the fax and internet even existed.
I feel an applicable comparison is to attempt to regulate cars and planes with regulations meant to regulate horses and wagons. You can argue they are all forms of transportation, and by focusing on the principles, applying the horse regulations can be done fairly.
But in reality problems occur with cars and planes, which can't occur with horses, and the potential uses of cars and planes, far exceeds the potential use of horses and wagons. These forms of transportation have very few commonalities, and regulating cars nd planes with regulations meant for horses is a truly a fools errand, destined to fail.
- Third, and last Centralized exchanges are actually the anthesis or opposite of what cryptocurrency is supposed to be about. Cryptocurrency is about completre control of your money, cryptographic protections of assets, peer to peer trades and exchanges, with no middles men or intermediators. These characteristics make much of the fraud and theft we have seen in crytocurrency impossible. And it has been the development of centralized exchanges and centralized investment firms, which by their nature remove all the protections of crypotographic security, eliminate peer to peer exchanges, and insert a middleman. This is the anthesis of cryptocurrency, and it is the root of most of the evil we have seen.
The future looks bright
- As I look to the future I see the continued growth of DEXs or decentralized exchanges, which are the anthesis or oposite of CEXs or centralized cryptocurrency exchanges, and they offer investors most aspects of cryptocurrencies intrinsic safety protocols, and potentials. Examples include Uniswap and PanCalkeswap, as well as Thorswap.
- These DEXs are in their early stages of development, and they have different inherent weaknesses not unlike CEXs or centralized exchanges. But they are evolving towards becoming more perfect entities.
- We are very early in cryotocurrency, and in sum respects we are like early setllers in a wild, untameds new land, dealing with all the dangers, wonders and sometimes great wealth that is possible in such an endeavor of exploration and discovery. But many settlers die on the trail in the journey to the new world. Cryptocurrency is no different.
@shortsegments
More Information about @shortsegments and the CUTE Community and INLEO
About the author @shortsegments
- @shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, Stablecoins, Digital dollars, Bitcoin, Etheteum, and decentralized finance for over six years.
- LINKPlease follow @shortsegments on Twitter
- Hive is a social media community on the Hive Blockchain
- Tokenized Social Media Platform, which means you post content, upvote content and comment on content to earn or get paid in cryptocurrency tokens called Hive. You can then sell these tokens for your countries currency, US Dollars or other cryptocurrencies like Bitcoin, Ethereum or Stablecoins like USDT, USDC
How to earn cryptocurrency on Hive
- You can earn cryptocurrency by writing long articles, short articles, posting videos, pictures, memes or other content.. Click my free referral link to sign-up in seconds and try the application out.
How to join
- Join Free with this free referral link: JOIN4FREE
C.U.T.E. : Learn more and join a group to help you be successful.
- The C.U.T.E. , is a group dedicated to the success of old and new community members.
- The group believes in Win-Win philosophy. We help others because it helps us too, and it’s fun.
- Here at the C.U.T.E. We follow a well travelled pathway to success called C.U.T.E.
- Learn more here: [C.U.T.E. Link]
- Join our Community Here LINK
- Twitter (X)Follow @shortsegments on
Posted Using InLeo Alpha
Bitrex closing is a bid blow for HIVE.
This is true. We need to encourage other on-ramps to Hive.
Currently we have wLEO.io as a bridge to Binance Smartchain and Polygon, which can be used as on-ramps and off-ramps from Hive.
It's important for Hiveers to learn these Hive and HBD trading pairs exist.
I'm inclined to agree that CEXs have their place in the industry as "gateways" into crypto. In general — whether you like them, or not — they make it easier for people to get started. Are they not a reflection of what crypto is about? Perhaps not...
I've long thought that Hive-Engine is a great "sandbox" for people to learn how to buy and sell and trade, with very small amounts, before they get in deeper. In fact, it stikes me as yet another good selling point for Hive that we have our own internal exchange.
=^..^=
True
Hive does indeed spoil you because it has so many features including the internal exchange, savings account, HivePower allowing delegation investments without risk..
It is truly a marvel.
I never thought about Hive-Engine as a sandbox, but it is a good point . The amounts of money are small and the number of assets is large, so you can practice buying and selling, and admirring the effect of buys and sells on pricce.
Congratulations @shortsegments! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next payout target is 31000 HP.
The unit is Hive Power equivalent because post and comment rewards can be split into HP and HBD
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPTo support your work, I also upvoted your post!
Thank you.
I agree there are bigger issues then just the death of CEXS the birth and nuturing of DXEs amd money onramps.
Agreed, the DEXs are important, we need a reliable one for Hive. But they are all on Ethereum, Binance Smart Chain and Polygon. Thats why we need to encourage LeoBridge