How to play in a decentralized exchange

1. Centralized exchange and decentralized exchange have their own advantages and disadvantages, and the difference is very obvious. Let's take a look at the centralized exchange first. To put it bluntly, the trading mechanism of the centralized exchange is actually similar to our traditional stock trading
the first step is to register (open an account) and set the password. The second step is user authentication (KYC). The third step is to recharge. Here comes the key. The third step is the most important. Because you need to charge money to your address in the exchange before you can trade money in the exchange. The address of the exchange is actually a wallet address, but the ownership of the wallet is not the user, but the exchange, that is to say, the private key of the address, you don't have it!!! Do you understand the meaning

well, after recharging, the transaction is finished. The user submits the instruction (hanging order) to the server, and then the exchange will be responsible for matching the transaction, which is exactly the same as the stock. The last is cash withdrawal (withdrawal of currency). Users can send instructions to transfer the currency from the exchange address to their wallet address. The above is the trading mechanism of the centralized exchange. In these steps, all actions will have costs. No matter you recharge, trade or withdraw money, gas and handling charges can't escape
then let's look at the decentralized exchange. The trading mechanism is different from the centralized exchange. The first step is to register (open an account) and set the password. It doesn't make any difference. But then it's a little different. KYC is not used. But because there is a private key, the ownership of this address is completely controlled by the user. The second step is recharging. This is not very different from the centralized exchange. You still have to make your own gas
after recharging, we can also trade in the decentralized exchange. Users can also register orders, and exchanges will also be responsible for matching transactions, but the matching is done by smart contracts. Finally, cash withdrawal (withdrawal of currency) is initiated. After withdrawing currency, users can directly transfer the currency from the address of the exchange to their wallet address. This step is the same as that of the centralized exchange
the above is the trading mechanism of centralized and decentralized exchanges, and the difference between them is also obvious. Because all currencies in the central exchange are under its control, the trading efficiency is very high, and it is similar to the stock trading process, convenient and suitable for most users. Conversely, the risk lies in this. If the exchange itself loses its integrity or is attacked by hackers, the user's capital (currency) is not guaranteed
all the transaction processes of decentralized exchanges are completed by smart contracts, so the transaction efficiency is relatively low (TPS of blockchain technology has always been a soft rib), but relatively, the capital (currency) is completely in the hands of users, so the security is relatively high. In addition, there are also KYC, where KYC is needed for centralization, but not for decentralization, and the security of personal information is relatively high. Compared with the decentralized exchange, the advantages of the centralized exchange lie in the trading depth and the number of users, which are unmatched by the decentralized exchange
therefore, centralization and decentralization have their own advantages and disadvantages. It depends on the user's own choice. They like convenient, centralized, secure and decentralized.

2. When it comes to digital currency, the topic is the exchange. If you want to hold digital currency, besides mining, the most convenient and quick way is to buy it from the exchange
we all know that one of the biggest characteristics of digital currency is decentralization. However, 90% of the exchanges in the market are under centralized management. Users need to transfer funds to the large account of the exchange, verify their identity information, and do not link currency transactions. Moreover, all information needs to be stored in the offline database of the exchange, All these seem to violate the decentralized spirit and centralized mode of blockchain, which makes users in a weak position, passively accept the "management" of the exchange, and also bear the risk of privacy leakage, hacker attack, exchange bankruptcy or running away
therefore, the emergence of decentralized exchanges has become an inevitable trend. Decentralized exchanges are also called DEX
currently, whaleex, newdex and gatechain DEX are the most representative decentralized transactions. In fact, it is a mode of wallet and wallet trading. Compared with the centralized exchange, it has obvious advantages. For example, all operations are carried out on the chain. It is publicly accessible and does not need to be registered. Anonymous trading and privacy are guaranteed. Users' assets are stored in a distributed way. They have 100% of the management rights of assets and have high security
however, although decentralized exchanges have obvious advantages, they are still not widely available in the market. Decentralized exchange is not a very mature mode, and there are still some problems, such as slow trading speed, poor liquidity, key loss, forgotten password and unable to retrieve account assets. Therefore, it needs to be further improved. However, it is undeniable that decentralized trading must be the mainstream mode of exchanges in the future.

3. First of all, the decentralized exchange mainly carries out transaction matching, asset clearing and settlement on the chain. User assets are managed by smart contracts and controlled by users. The exchange does not touch user assets
secondly, the biggest value of the decentralized exchange is that users have absolute control over their own assets, and all transaction data and records will be linked through the blockchain smart contract, so as to ensure the openness and transparency of transactions and greatly rece the trust cost of users to the exchange
thirdly, it is very difficult for hackers to steal user assets unless they can get each user's private key. Even if the exchange's private key is leaked, the user's assets cannot be transferred without the user's private key, so it is very safe. With decentralized exchanges, you no longer have to worry about the risk of losing or stealing money
for this reason, with the graal maturity of the underlying technology of blockchain, decentralized exchange has great development potential, which is the trend in the future.

4. Decentralization is a form of social relations and content proction formed in the development of the Internet. It is a new type of network content proction process relative to "centralization"
compared with the early Internet (WEB 1.0) era, Web 2.0 content is no longer proced by professional websites or specific groups, but the result of participation and creation by all Internet users with equal rights. Anyone can express their views on the Internet or create original content to proce information together
with the diversification of network service forms, the decentralized network model becomes more and more clear and possible. After the rise of Web 2.0, the services provided by Wikipedia, Flickr, blogger and other network service providers are decentralized. Any participant can submit content, and Internet users can co create or contribute content
with the emergence of more simple and easy-to-use decentralized network services, the characteristics of Web2.0 become more and more obvious. For example, the birth of services more suitable for ordinary Internet users, such as twitter and Facebook, makes it easier and more diversified to proce or contribute content to the Internet, thus enhancing the enthusiasm of Internet users to participate in the contribution and recing the threshold of procing content. Eventually, every netizen becomes a tiny and independent information provider, making the Internet more flat and content proction more diversified
decentralized computing is a computing mode that allocates hardware and software resources to each workstation or office. In contrast, centralized computing is to centralize most computing functions locally or remotely. Decentralized computing is a modern computing model. On the contrary, centralized computing generally existed in the early computing environment. A decentralized computer system has many advantages over the traditional centralized network. With the rapid development of desktop computers, their potential performance far exceeds the performance requirements of most business applications. As a result, most desktop computers have idle computing power. A decentralized computing system can maximize the efficiency of these potential. However, whether it increases the effectiveness of the whole network is still open to question.

5. To tell you the truth, it's very slow. It's also related to the development of the instry. After all, the underlying public chain TPS is so slow, let alone the above applications. However, everything is not absolute. Whaleex, a decentralized exchange based on EOS, is very fast and not slow at all. They have independently developed the matchmaking engine under the million TPS chain, and the transaction efficiency is very fast. They can complete the transaction quickly from the order registration to the transaction, which also reflects that their transaction depth is very good and the liquidity is very good.

6.

at present, the vast majority of digital currency transactions are concted in exchanges. Among the numerous exchanges, bitfinex, binance, okex and so on are well-known

However, bitcoin and other digital currencies, as decentralized assets, have to be traded in a centralized exchange, which seems to have hidden contradictions and dangers

1. Problems and challenges of stock exchanges=“ https://iknow-pic.cdn.bcebos.com/fd039245d688d43fdf16c83b761ed21b0ff43bbf ">

in February 2014, Mt. GOx, the world's largest bitcoin exchange at that time, was stolen 850000 bitcoins, and the price of bitcoin suffered a" cliff "crash on that day. Later, it was revealed that Mt. GOx was in fact a thief, and only 7000 bitcoins were actually stolen

in August 2016, bitfinex, the largest U.S. dollar bitcoin trading platform, suffered a security vulnerability, resulting in the theft of 120000 bitcoins, which was worth $65 million at that time. If converted into the price in December 2017, it would be worth nearly $2 billion

on December 19, 2017, South Korea's youbit exchange was attacked by hackers and lost 4000 bitcoins, and the exchange declared bankruptcy

on December 21, 2017, the Ukrainian liqui exchange was stolen 60000 bitcoins, and the unit price of bitcoin plummeted by US $2000

in 2018, such a drama will only continue

in addition to the threat of hackers, traditional exchanges also have some inherent shortcomings, such as lack of supervision and inefficiency. The security of the exchange for investors can only rely on its own credit, and the cost of running is very low. The stock exchange is regulated at the national level, but there is no such sword of Damocles on the top of the digital currency exchange. Moreover, in an exchange, the same order can only be submitted to one exchange. After the user places an order, the funds used for the transaction will be frozen and can only wait for the completion or cancellation of the transaction. These are undoubtedly inefficient

All in all, the problems of exchanges are the problems of centralization

2. Decentralization of exchanges=“ https://iknow-pic.cdn.bcebos.com/86d6277f9e2f070889a173c9e224b899a801f257 ">

(1) the progress of the exchange itself

the upgrade of security means is various. At present, the best use is cold wallet, that is, to keep the digital currency in the offline U disk. At the end of 2017, when the YouTube exchange was attacked, 75% of its assets were withdrawn into the cold purse in time to avoid greater losses. However, it seems to be a helpless way to protect the online assets by offline means. Of course, there should be many other methods, which will not be repeated here

(2) the representative of cross ledger transaction is ripple network, and the operating company is ripple labs, which is a semi centralized system. Ripple is a decentralized clearing agreement. In order to solve the high cost and delay of inter-bank clearing, its base currency is XRP. Ripple network can connect all kinds of assets, such as US dollar, RMB, Japanese yen, bitcoin, etc. to its own network. In this system, U.S. dollars or bitcoin can be converted into reborn currency, and then reborn currency can circulate freely in the network, just as a highway is built between various assets. Due to the support of major banking institutions, the reborn currency achieved nearly 300 times growth in 2017

(3) decentralized exchange

some teams try to use blockchain technology to build a decentralized exchange. This kind of decentralized exchange, to some extent, is an extension of cross ledger trading

bitshares is the most representative of early rising projects. It builds a blockchain development platform with servers scattered all over the world. Even if some of them are attacked, the system will not collapse. Anyone can transfer money and borrow money freely on this platform, and can also quickly build a centralized exchange based on this platform. In order to ensure stable value, bitstocks also require three times of digital assets as collateral. At present, bitstocks are running fairly well

later, with the development of Ethereum and smart contract, the x x protocol came into being. This is an open protocol running in the Ethereum blockchain and a decentralized exchange in the Ethereum ecosystem. The agreement has attracted many investors. At present, it has completed financing and started to build open source software tools and infrastructure. Of course, there are many competitors. Ether Delta, IDEX and oasis DEX are trying to provide similar functions. Moreover, it is a smart contract system based on Ethereum, which only supports erc20 token. If other smart contract public chains start to rise, the demand will be reced

in addition, there are some teams that are entering, such as the domestic road seal agreement, looping (LRC) in English. They adopted a design similar to the X protocol, and also introced a fast payment function similar to the lightning network. It is characterized by trying to match multiple exchanges, the user's order can be broadcast to multiple exchanges, and completed by different exchanges. Moreover, the user can still use the account funds after placing an order, and the user's behavior of transferring part or all of the funds is equivalent to partial or total cancellation. To some extent, it improves the breadth and timeliness of the transaction. However, this system seems to have damaged the "power" of the existing exchanges. Whether we can persuade everyone to play together will be a difficult problem

At present, there is still a long way to go for the construction of decentralized exchange. In 3-5 years, traditional exchange will still be the main battlefield of digital currency

However, in the future, it is worth looking forward to let the decentralized digital currency get rid of the shackles of centralization

7. Recently, we have focused on several different ways to play. The first is the memory variant of EOS, DRAM. Before that, we still need to understand the new ways of playing outside, and we also need to learn from MOAC. The second one is the coin reform that FT pulled yuan Dao and Meng Yan. EOS ram: memory is used, not fried. Let's talk about BM first. In fact, this is a disguised BTS game, similar to the decentralized exchange. For example, when you play foreign exchange, the US dollar against RMB, but the price may not be ideal for a period of time, and people are very frustrated. As a result, you play A-share on the basis of RMB. EOS like prices are falling. However, the previous speculation on ram is also a drawback. One is that the cost of developers has been raised. The other is that the whole speculation cycle has been completed in a week and new things are needed. So what is similar to MOAC? It's MOAC's nodal coin plan. In this way, when you see the node coin, you can play it yourself first. In addition, the currency reform of FT is also the asset chain that MOAC has been engaged in. Unlike them, they are engaged in currency reform, but there is no chain support in the future. At present, there is still room for cooperation and complementarity with it. But in the future, they will definitely go to the decentralized exchange. BM will certainly go to this aspect, and MOAC will certainly do the same.

8. " There are two ways to open an account:
1) log in to the official website to open an account online through the official website - "member center" - online registration
2) after installing zongyihui software on mobile phone, online account opening can be done through zongyihui - "online account opening"& quot;