The DEX, OpenLedger, and Bitshares Series - Part 1 - What is DEX, and Why You Should Know What it is.
This is a basic introduction to the DEX in Part 1.
DEX
This is opposed to the "CEX" or "Centralized Exchange(s)"
The vast majority of Crypto Exchanges are Centralized Exchanges. These include exchanges such as: Bittrex, Bitfinex, Binance, HitBTC, CoinBase, Bitstamp, Kraken, Kucoin, and many many more you have probably heard of, in addition to god knows how many most people have never heard of.
These exchanges vary widely in reliability, accountability, volume, customer service, and anything else they offer. Centralized Exchanges can be great experiences or horrific experiences depending on which one you choose, and what you are looking for in an exchange.
So, if those are the ones most people know about, they must be the best.....right? Right??
Some people really prefer one or more of these exchanges over the DEX. Personally, I don't. Not for most of my needs anyway. If you are a frequent trader, a good centralized exchange might provide the volume needed in the coins you trade to allow you to profit regularly from buying and selling. One complaint the DEX often receives is about their lack of volume compared to many Centralized Exchanges. However, if you are not a day or short term trader, I would argue that holding SmartCoins on a DEX is a better plan for the future.
You are Trading a Decentralized Currency that is Built on a Decentralized Platform to Perform a Decentralized Task...on...a... ...Centralized Exchange? Hmm...Why?
Although I don't subscribe to the idea that we are all here for the same reasons, I do recognize that the goal of MANY Crypto based projects is to Decentralize a product, service, or industry.
Why?
Because there are immediate advantages to decentralization of transactions like: Transparency, Accountability, Resource Abundance, and Strength in Community to Provide Services with Little to No Down Time....Ever.
These are just a few advantages you may find in the decentralization of certain aspects of our lives. Maybe decentralization is not the solution for everything, but it sure does make many things easier, faster, and more accessible.
So aside from those advantages that can mostly be experienced even with a CEX, what are the specific benefits to the trader using a DEX?
- SmartCoins mean your investment is 100% Backed in a fully transparent SmartContract. No need for Audits (even though most exchanges don't bother with Audits anyway). On the DEX, that SmartCoin cannot come into existence without being backed fully with the Original Coin per the SmartContract.
- Governments can't freeze the DEX, or your funds inside the DEX
- Governments can't shut down the DEX....it's damn close to being able to say it's impossible
- DEX allows you to have accounts that are not directly tied to your Bank Account or Identity
These are just a few of the big advantages you will get trading on the DEX.
Here is an introduction to OpenLedger, Bitshares, and DEX in general:
(video courtesy of www.Openledger.info )
So if everything we are involved in with Crypto is based around being Decentralized, it only seems Natural to migrate to Decentralized Exchanges...if for nothing else but to protect your Decentralized Investment!
With the closing of the admittance of several countries to some of the big CEXs, Volume has increased quite a bit on the OpenLedger/Bitshares DEX.
Join the party at http://www.openledger.io or http://www.bitshares.org
Learn more about OpenLedger are http://www.openledger.info
Part 2 Will Address What the Hell Those Coins are that are Listed on DEXs
Part 3 Will Address How to Get Started on the OpenLedger and Bitshares DEX
There's alot going on with both OpenLedger and Bitshares, so if you're still feeling lost, it will make more sense the more you learn. Look for Part 2 to be posted very soon.
(top image courtesy of google images via decentralize.today)
(there are no referral links in this article)
Learning Points for Part 1:
SmartCoins
SmartContracts
Great post. Resteemed to get the word out. I agree...we are using decentralized currencies on centralized exchanges. If the FBI or some other agency decides to freeze that site, you're in a bad situation. You can also have things like Mt. Gox happen. Decentralized is the future!
Great starter video @scarlet7. Hopefully this moves plenty more people over to bitshares!
Great post. Decentralised exchange is a great idea and hopefully we can use them in near future rather than using centralised exchanges to buy cryptos.
I have a question, where are you storing your BTS. I got mine and some other Cryptos on the open ledger DEX. Is that safe and what is the difference between BTS Wallet and the openledger DEX ! Thanks for your post @scarlet7 👌
For me it depends on if you are talking about storage for the long term, or assets you may trade or intend to trade soon. Long term I would remove them from the Exchange, whether CEX or DEX, but trading assets I leave on the DEX. The exact same wallet models are used for both OpenLedger and Bitshares Cloud Wallets. The accounts are interchangable, and always reflect each other in each block. Bitshares also offers a GUI Client App for Local Wallets, which would generally be more secure than a cloud wallet that only requires a name and password. OpenLedger is only available through OpenLedger.io.
Thank you for that, now I understand this "wallet-thing"... I am searching to store, trading is not my business 😉 Sometimes it is pretty hard, because English isn't my mother language. Whatever... UPVOTE @scarlet7
Excellent article, thanks for posting that information.
https://steemit.com/money/@arthursen/new-report-on-website-pointing-out-the-steem-advantages
Beautifully written article! I will be passing it forward. It's these kind of articles that I believe will help new users understand the importance of protecting the real decentralized market. Thanks Scarlet7
Good primer on DEX. I didn't know all of that!
Good article ! Thanks for supporting BTS
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Thank you for this! Looking forward to the getting started info! :)