DEEX is a decentralized ecosystem. And there are several reasons why we decided to go the way of decentralization.
Decentralized exchanges are safe
Even the most popular and stable trading platforms have been hacked. Among the most notable cases were the Mt.Gox hack (2014), Poloniex (2014), Bitfinex (2016), Bithumb (2018), Binance (2019). No matter how many security developers there were in the team, a centralized platform is one single point of failure.
When we say DEXes are safe we should clearly understand what is a DEX. Basically a DEX is just a distributed order book, being executed on a blockchain protocols: Ethereum, EOS, Bitshares. DEEX utilizes Bitshares, a secure protocol that has been launched in 2014 (1 year earlier than Ethereum and 4 years earlier than EOS) and has never been compromised and proved its security over time.
The trading operation on DEEX is happening between two parties and no one else. So the only method for a hacker to get one’s funds is to compromise user’s wallet. And not the exchanges’ one.
Although DEEX has its own custody, the funds distributed over a number of wallets and the main assets are collateralized through Bitshares / DEEX tokens. Meaning that the volume of let’s say bitcoins is represented in the form of collateralized assets locked by smart contracts and not a BTC wallet itself, which is a seductive loot for any hacker.
Decentralization do not require identity
Stop! Cryptocurrency appeared as an anonymous way of p2p transfers without any 3rd party control. So why the biggest centralized exchanges control your identity in order to allow you to deposit and withdraw funds. Top crypto trading resources claim themselves to be “financial institutions” and therefore use KYC (Know-your-customer) and AML (anti-money-laundering) procedures in order to prevent the use of cryptocurrencies for illegal purposes. Therefore they receive information about the person and source of the income. The thing is the cryptocurrency all over the world is used as an alternative to the bulky bank procedures full of bureaucracies and excessive compliance. This means that the centralized exchanges are turning into some sort of mini-banks. And if someone does not trust a bank, why he should trust its replications? Moreover, at the end of the day – who knows who will get your ID that they asked you to share – government, gangsters?
DEEX has never asked (and never will) for any ID verification. No matter how big or small is the deposit, we respect the anonymity of our customers while their IDs only exist as blockchain (Bitshares) accounts. This is the only and true decentralization.
Any asset can be traded
When one talks about centralization, you should keep in mind compliance and regulation. That’s why majority of centralized exchanges are limited only to those trading pairs that do not look “suspicious” in terms of Howey test or any other local regulatory institution standards. For example, despite constant talks, none of big trading sites have listed tokens issued during the STOs. In case of decentralized one any asset can be created and traded. For instance Bitshares has a built-in functionality to collateralize any asset (currency, commodity, share in a company etc). This means that decentralized platforms are not limited to trading only “utility” tokens, many of which have already proven to have no utility at all.
DEEX lists User Issued Assets, some of them represent fiat currency, some commodity and some – popular utility tokens. There are no limitations. Once any Bitshares user issues any asset having real value, it could easily be traded through DEEX.
When a user bears his own responsibility for the compliance of an asset, why somebody would limit him. This is a core difference between centralized exchanges with their listing policies and DEXes, such as DEEX.
Safe and convenient OTC platform
Following the principles of decentralization, security and anonymity Deex offers only the best functionality to the users of the ecosystem. On our OTC platform otc.deex.exchange you can safely buy and sell cryptocurrencies using bank cards and bank transfers in many countries around the world! And all this without the risk of facing up with a cryptocurrency scammer! The next stage in the development of the platform will be the opportunity to work with other cryptocurrencies with guarantees of security through the escrow service.
Convenience and user interface
Some people complain, it’s not convenient to trade with decentralized sites because of the low speed and ugly interfaces. Also there is no sufficient infrastructure around them. However this myth has nothing to do with decentralized exchanges themselves. It was a bare observation built on the fact that many DEXes do not have big team of designers, developers and marketers behind them.
Today there is a developed infrastructure around some DEXes. DEEX is a good example: convenient and simple interfaces that are easier to use; developed module infrastructure including IEO platform, voting modules, P2P exchange, mobile app (coming soon) and even an opportunity to buy crypto “on the ground”. Through the cryptomat.
The true nature of decentralization
At the end of the day, it is some sort of an irony for decentralized currencies to fall prey to centralized exchanges. Having crypto as just some digits shown by the interface does not mean you possess your cryptocurrencies. It does only mean you have a lot of trust to some random guys. Here to mention several cases including the death of a crypto exchange SEO with the only key to $137 million. Stories like this highly compromise the crypto industry.
The more decentralized the platform is, the more secure are the funds and less risks are carried by a single person or a group of people.
The DEEX team has made a conscious choice towards decentralization, putting all efforts to build the best-in-class decentralized ecosystem with best user experience and security.