Ninjastic
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Board Economics
Re: How Binance Decentralized Crypto Exchange Launch in 2019 Will Impact the Market
by
tee-rex
on 02/10/2018, 15:57:35 UTC
Quote from: Ucy on October 02, 2018, 02:40:58 PM
Quote from: pawel7777 on October 01, 2018, 04:00:20 PM
Quote from: tee-rex on October 01, 2018, 03:35:10 PM
...
But that platform, or kind of, has been there for centuries. When you exchange fiat person to person, just like gold and silver coins a few centuries ago, that is a peer-to-peer exchange. How are they going to regulate it? Now, with the advent of cryptocurrencies and Internet, we are taking this exchange to the next level by removing distance from the equation completely. If you ask me, that's a natural course of events, and preventing or hindering it would be like trying to stop a freight train. Typically doesn't end well for those trying.

You may be confusing peer-to-peer with decentralisation, these 2 doesn't necessarily go in pairs. Binance is/will still be a central entity providing platform for P2P traders and as such, they could be forced to impose limits and comply with KYC requirements.
Even Localbitcoins seem to require ID verification above certain threshold: https://news.bitcoin.com/significant-trade-volume-triggers-localbitcoins-kyc-requirement/

I think this is still a 'grey area' in many jurisdictions, up until cryptos were introduced - such activities were simply not possible to do online.

Anyhow, the good news is, if there's ever too many restrictions on legal P2P exchanges, new 'underground' exchanges will quickly pop-up and take their place.


It is Decentralized exchange or nothing.

I strongly support this attitude. But for the time being a truly decentralized exchange is simply impossible. Well, conceptually, it is possible of course but it will be completely unusable as there is no way to guarantee the execution of orders in real time as all transactions should be written on the blockchain and that takes a fucking amount of time. And to do that on the fly, which is what any regular exchange does in their inner accounting, we need something like Lightning Network implemented across different coins. That means all coins should use the same exchange protocol built in if these coins are to be traded against each other. Technically, it is quite feasible and doable, but there is an insurmountable issue of human factor which clearly reveals how self-centered the cryptocurrency developers are.