[...] centralized exchanges still are faster at executing transactions, by orders of magnitude in general, than decentralized ones. So there are places for both kind of exchanges.
I fully agree.
High frequency trading will by design be impossible with B&C Exchange - at least in the implementation that is currently being created.
I have no idea how to bring the speed of a decentralized exchange even close to a centralized exchange, but doubt that it's possible with the currently available tools.
This decentralized exchange is going to have other benefits than speed (just to name a few):
- ability to trade native assets instead of proxy assets (in difference to other decentralized exchanges, same as centralized exchanges)
- high level of security due to multisig with different possible levels (rarely (if ever!) found at centralized exchanges)
- high level of availablity - all trades happen on blockchain and cost BKC; DDoS'ing the blockchain is possible, but very costly as BKC are required for it
- highly flexible ways to access the "account": by wallet application on own computer or through websites, which offer access to the blockchain
- leveraged/margin trading is basically possible
- decentralized escrow services are within reach