Blockchain-Based Decentralized Exchanges Are Growing, But There Still Are Significant Risks – Forbes

Blockchain-Based Decentralized Exchanges Are Growing, But There Still Are Significant Risks – Forbes

In the aftermath of the hearings connected to GameStop GME trading volatility, what is the potential for decentralized exchanges (DEXs) to go mainstream?

Specifically, questions are being asked about market access, the differences between how individual and institutional investors can access the marketplace, and the role of centralized third party entities in this process. One topic that has continuously come to the forefront of market conversations is the potential for decentralized trading, and how blockchain can help enable this idea become reality.

In other words, how can blockchain assist in the development of decentralized trading platforms, and what are some of the risks that market participants need to be aware of regarding this idea?

At first glance there is definitely some upside, but there are also examples – including the SushiSwap issues (which in turn was based on a clone of the popular DEX Uniswap) – illustrating that while innovative, there is still work to be done to improve these applications. Let’s dig in.

The current centralized method
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