Block DX: Why We Need Trustless Crypto Exchanges

Cryptocurrencies have been a vital component of the evolution of money and the adoption of digital assets. Their trade continues to be a haven for individuals in regions with financial or political instabilities. Likewise, crypto exchanges play a significant role in the circulation of cryptos through enabling purchase, sale, and trade using virtual currencies.

However, these exchanges differ in many ways and can be confusing when choosing the right type. Previously, most trading took place on centralized cryptocurrency exchanges (CEXs), which made them the most popular option for all traders entering the market. Trustless exchanges or decentralized exchanges (DEXs), on the other hand, were constantly trying to catch up to the hype of CEXs. However, trustless exchanges are now up to speed and bringing a huge competition for CEXs. This article hopes to shed more light on why traders should notice the rising shift to trustless exchanges.

Detriments of CEXs

Some of the vital factors to take note of are:

• Security Vulnerabilities: CEXs are a major target for cybercrimes due to having a centralized position of holding assets and governance. The cases of exchange hacks leading to loss of millions in traders’ assets have been on the rise lately with major CEXs, such as Coinbase and BitFinex falling victim. 
• Privacy: Users have to delegate their private keys to the exchanges for safekeeping. Meaning, the exchange has complete control over your digital assets. Furthermore, you have to submit personal information stored on the exchanges’ servers, during sign up. In case of any cyber-related crimes, hackers can acquire this information and use it in identity theft. Worse still, CEXs are required to share personal information with other CEXs and government bodies, regardless of the reputability or intent of the third parties. 
• Downtime: CEXs experience delays and downtimes, despite efforts to ensure that systems run smoothly. It is an inconvenience to most traders wishing to trade strategically at a particular time. Furthermore, increased investors and trading on these platforms reduce the systems’ efficiency due to centralized nodes.
• Regulations: The governance by a central body and provision of locations leads to the chances of closure by governments. Monopolistic environments encourage the manipulation of prices and fees that investors incur. CEXs also suffer from issues of embezzlement, which may lead to the downfall of the networks. Finally, some exchanges lack regulations completely denying any legal responsibilities to their customers.
• Trade Limitations: CEXs place a withdrawal or deposit limit for all users posing unreliability for those who wish to make trades above or below their limits. Moreover, CEXs do not offer new tokens with limitations in listings and high costs for the same process. 

Trustless Exchanges as a Solution

Trustless exchanges allow everyone to deal with their assets and automated trade without the exchange’s involvement. These exchanges have more advanced technology and setting, making it hard for newbies to trade.

Despite this issue, DEXs can eradicate most of the problems posed by CEXs. Firstly, decentralization means every user is in complete control over their assets and wallets. It maintains the credibility of the system while reducing the trading fees incurred during trade on CEXs. Moreover, there is no need to sign up or offer your personal information to the network, ensuring all users’ anonymity during all the undertakings.

Decentralized exchanges are also secure and convenient spaces for investors and their digital assets. DEXs are less susceptible to hacks, an upside due to the distribution of nodes. They have no risks of shutting down as per government orders, no misuse of funds as every transaction is immutable on a distributed ledger, and no downtime with increasing traffic.

DEXs present a wide variety of tokens to trade using, including the newest in the market. All the factors point to why DEXs are slowly overthrowing CEXs in market volumes and popularity.

Block DX, the Ultimate Trustless DEX

Block DX is a DEX established as “the most secure, fastest, and most decentralized” exchange today, built on the Blocknet Protocol. According to the overview of the values it runs by, the exchange believes that an efficient DEX should offer decentralized storage of funds, order books, order matching, governance, settlement, and open-source code.

All traders can enjoy direct transfers from individual wallets without interactions with third-party entities. The platform also aims to return value to the service nodes running the network, unlike CEXs, which enrichen the exchanges.

Block DX Features

In that case, here is a brief look into significant features Block DX displays:

• Interoperability: Through the Blocknet protocol, Block DX assures all users of a secure and smooth trading experience. The protocol is interoperable initiating communication with other DEXs and blockchains. Its integration is non-tasking, providing easy linkage of other blockchains to utilize the Blocknet protocol. 
• True Decentralization: Block DX employs true decentralization through the XBridge component and atomic swaps to avail decentralized funds storage, order of books, order matching, and settlement. All clients are free to create their own order books and matching. 
• Privacy and Security: Users evade accounts, sign up, KYC, or AML requirements, which eliminates the need to provide personal information. Having distributed nodes ensures it is less susceptible to cyber-related attacks. 
• Fast and Reliable: Distributed nodes also gear towards zero downtime during trades, working hand in hand with in-built DoS protection; users can complete trades in 5-15 seconds. 
• Open Source: Block DX offers all users an opportunity to leverage or criticize all source codes to benefit themselves or suggest  improvements. In turn, they can get high levels of security according to user standards.
• Trading and Listings: Block DX enables any trading pairs as per the user’s preference instead of allowing interaction with its native token, BLOCK, only. It supports an array of currencies, including bitcoin, Bitcoin Cash, Dogecoin, Litecoin, DASH, and more. Block DX is working towards listing ETH and ERC-20 tokens on the network. The censorship-free environment ensures no individual controls the listing of assets and their trade. There are no listing fees on Block DX.
• No Limits and Lower Fees: There are no limitations to trade, withdrawal, or depositing, which is reliable depending on a user’s activity. All trade is trustless facilitating lower trading fees  that apply when transferring funds from addresses, and zero withdrawal fees. Additionally, you can enjoy returns from trading fees on the network if you are a BLOCK holder. 

Conclusion

Centralized crypto exchanges offered the only pathway to crypto trading for a long time, leading to them dominating the market. However, the winds shifted with DEXs coming into the picture, eliminating centralization, privacy, and security issues in CEXs. Users are realizing the opportunities DEXs extend, thus, boosting their adoption.

Block DX is among the DEXs presenting unprecedented convenience to its traders through true decentralization. It hopes to create a safe, anonymous, and censorship-free environment for traders to conduct their activities. Moreover, it solves the problem of interoperability clouding most DEXs today. The advantages Block DX has over CEXs will accelerate the rate of users abandoning CEXs for DEXs.