TokenInsight
Jun 14 · 4 min read

TokeInsight released its 2019 Research Report on Decentralized Exchanges to give you every important detail you need to know in the DEX industry. The report provides insights into market performance, project development situation, technical development and ecosystem construction.

Key Points:

✅Centralized exchanges are the current status quo of the market.

✅ The framework of a centralized exchange is very similar to that of traditional security exchanges, which enables users to charge their accounts with fiat currency or in the case of crypto, directly with digital assets.

Centralized exchanges are highly efficient as there are no interactions with blockchains needed during the trading process, as well as order matching and settlements being executed on a centralized server. Despite these efficiencies, many problems still exist within decentralized exchanges, especially those surrounding issues of trust and security.

Security problems brought forth by centralized storage. For centralized exchanges, the designs of charging and withdrawing are the most vulnerable area in which security problems can arise.

✅Although there are diverse forms of implementation, the core element of a DEX is that users take charge of their own digital asset during the trading process and do not need the trust of a third party to facilitate trades. Real-time on-chain settlements being available on DEXs is a very attractive feature for users.

✅Only Binance DEX is established through blockchain technology without smart contract.

✅Currently, most DEXs have adopted off-chain order books and on-chain settlement.

Since 2019, Binance has had a daily trading volume of roughly 49 times that of all decentralized exchanges combined, and another centralized exchange, KuCoin, has a total trading volume slightly higher than that of the overall decentralized exchange industry.

✅Existing Problems: Mainstream transaction pairs are scarce, and transaction efficiency and depth are poor.

✅In the long run, tokens in gaming, utility and financial applications are still the mainstream types seen in DEX trading, but, with the advent of more application scenarios and advancement in technology, the tradable token types will become more diverse.



About TokenInsight

TokenInsight is an independent third-party data analytics organization whose focus is to provide accurate information and ratings on companies developing in the blockchain industry. TokenInsight is dedicated to providing accurate ratings, research, and analytics that contribute to intelligent financial decisions and market transparency.

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TokenInsight

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Find, Create and Spread Value in Blockchain.

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