This digital asset platform will have the advantage of working like BitTorrent, i.e. the overall computational power will increase as more nodes will be added every time there are many users logging in.
Many of the governments have issued centralized exchanges for taxes and oversight reasons. Due to which they ask for information like, Address, Social Security Number, Copy of Passport, Copy of ID or Driver’s License and Copy of Utility Bill from their users before they can start trading in few dollars. We assume that this exchanges will be hacked and when that happens all this personal data of the users will be at risk.
Authentication by design is not required in the Decentralised exchange. The only requirement for trading is owning a hardware wallet or a web wallet. In simple words, anyone can trade without a profile. No profile means no social security number is required or any ID photo that can be stolen.
Because there are no requirements of authentication and no deposit or withdrawal fees, Decentralised Exchanges do not suffer this problem.
High fees are charged by most of the exchanges. Coinbase charges fees of 1.49% by bank account or 3.99% by credit card in the US. 0.25% of fees are charged by other exchanges like Bittrex.
Many decentralized exchanges like Waves are moving to a very small fixed fee system, where a $100,000 order will cost cents, compared to $1,490 on Coinbase and $250 on other centralized exchanges.
Decentralized Exchanges have a great scope ahead. Here we discussed what is Centralised and Decentralized Exchanges and the compared them both. In comparison, we can see that why Decentralised Exchange can be the future of Crypto Trading. There are already many players that have started entering the market with Decentralised Exchange and with time will grow. These can very soon be the pillars of the Blockchain ecosystem.