Problem with majorify of those "decentralized exchanges" is that they are not really decentralized. Good example of that is Pancakeswap that is based on highly centrazlied BSC so how decentrazlied it can be in the end? In the same time, truly decentralized Bisq has only ~$100k daily volume so it makes it very costly to buy/sell any bigger amount of bitcoin.
I agree with your perspective that many so-called decentralized exchanges (DEXs) in the cryptocurrency industry have not fully achieved decentralization, like PancakeSwap on the Binance Smart Chain (BSC).
However, there are still truly decentralized exchanges, such as Uniswap. To identify genuine DEXs, we need to consider the following factors:
The underlying blockchain on which they are deployed should be decentralized. BSC, for instance, is not truly decentralized, so DApps built on it cannot be considered fully decentralized either.
In contrast, Ethereum and several prominent Layer-2 chains offer a more decentralized infrastructure. Therefore, when choosing DEXs or Transparent Exchanges (TEXs), opt for those deployed on Ethereum or major Layer-2 chains, keeping in mind that Ethereum has higher gas costs, while Layer-2 chains offer lower gas fees.Oh, really?
Alright, let's see
1.
Uniswap Says It Now Collects Certain Data From Users2.
Uniswap Labs restricts access to certain tokens through its interface, citing 'evolving regulatory landscape'3.
Wallets Banned by Uniswap Labs for Alleged Crimes4. I remember IDEX asking for KYC from users at one point. Another so-called decentralized exchange using smart contracts deployed on Ethereum
Decentralized much?
You make some valid points, and it's essential to address the concerns you raised about Uniswap and other so-called decentralized exchanges. While some DEXs might implement certain centralized features, it's important to differentiate between the DEX protocol itself and the user interface provided by the developers.
Uniswap collecting user data: It's true that Uniswap collects certain data from users. However, this data collection pertains to the user interface developed and maintained by Uniswap Labs, not the underlying smart contracts. Users can still interact with the Uniswap protocol using alternative interfaces or directly with the smart contracts, which do not involve data collection.
Uniswap Labs restricting access to tokens: Similar to the data collection issue, the restrictions on certain tokens are imposed by Uniswap Labs on their user interface, not on the protocol level. Users can still access these tokens using alternative interfaces or by directly interacting with the smart contracts.
Wallets banned by Uniswap Labs: Again, this pertains to the Uniswap Labs interface and not the underlying smart contracts. While it may appear centralized, it's essential to remember that the protocol itself remains decentralized, and users can interact with it through other means.
IDEX asking for KYC: In the case of IDEX, their implementation of KYC does indeed go against the principles of decentralization. It's crucial to differentiate between truly decentralized exchanges and those that adopt centralized elements.
In conclusion, while there are concerns with some aspects of DEXs like Uniswap, it's important to distinguish between the protocol level and the user interface provided by the developers. Decentralization exists at the protocol level, and users have the option to interact with the protocol through alternative means that do not involve data collection, access restrictions, or banned wallets. The crypto community must remain vigilant and continue to scrutinize the practices of DEXs and other platforms to ensure the highest level of decentralization and transparency.
Transparent Exchanges（TEX) which aim to strike a balance between decentralization, security, and user experience. While complete decentralization is a desirable goal, it's important to recognize that achieving it might come at the cost of user experience in certain cases.
TEX focuses on ensuring transparency and security while offering a user-friendly interface for traders. This means that while some aspects of TEX might be centralized, the overall goal is to provide users with the best possible trading experience that upholds the fundamental principles of the cryptocurrency space.
In summary, TEX seeks to find a sweet spot between decentralization, security, and user experience, ensuring that users can enjoy a transparent, safe, and convenient trading environment in the rapidly evolving cryptocurrency landscape.