I understand. And appreciate your answer! :)
What can we do to strengthen decentralised exchanges?
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I understand. And appreciate your answer! :)
What can we do to strengthen decentralised exchanges?
Posted using Partiko Android
The core of the lack of use in decentralized exchanges is speed... or lack of speed.
When a coin takes minutes to hours to transfer, then this renders the decentralized exchanges useless for reasonable volume. Even if a coin that takes 3 seconds to transfer like STEEM or SBD, that is still at least a thousand times too slow.
In order for decentralized exchanges to become significant, first the coins need to have millisecond transactions. That doesn't exist.
How centralized exchanges accomplish this is by creating a virtual currency within their own exchange to trade with. You as a user of a centralized exchange first deposit some currency in the exchange's wallet. They then create a virtual currency and supply your account wallet within the exchange. Think of it like buying arcade tokens when you go to an arcade. The games don't take credit cards or dollar bills or other types of currency. First you must buy the arcade tokens then you can go play the games.