CryptoCurrency : Centralized crypto exchanges are the largest source of bad publicity crypto industry gets
Crypto exchanges are a single point of failure and so are a target for hackers.
The issue with crypto exchanges is how transactions are cleared and settled via their platforms. As cryptocurrencies exist within an unregulated space, clearing and settlement cannot occur through traditional, regulated channels, making clearing and settlement risks abnormally high.
Moreover, exchanges aren’t willing to act as anything other than a third party that only arranges trades between buyers and sellers. This means that they are not a direct counterparty to every transaction that takes place and so are not bearing much responsibility for what takes place on their platforms.
That is why I think we need blockchain-based decentralized clearing system and I am not sure why is almost nobody working on that (I only heard of a chinese team – daex.io that focuses on it) although it is one of the bottlenecks for adoption and one of the most frequent sources of bad publicity for crypto in general.
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Author: Hance1983
Score: 40
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