Solving The CEX vs DEX Dilemma In Crypto – Finextra

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• The way digital assets are being traded is evolving

• Centralized services and decentralized platforms are in deep competition

• Hybrid CEX and DEX solutions are starting to develop

• Trading in the future could look to use a combination of various open-source tech from both CEX and DEX

Digital asset trading rose to prominence in the past few years. We can attribute this rise to the emergence of crypto exchanges all across the globe. They have made it easy for people to buy, sell, and trade digital assets like cryptocurrencies. 

Crypto exchanges have played a primary role in the success and mass adoption of cryptocurrencies. Yet, users are still torn between the type of exchange they should use for trading. At present, the two different types of crypto exchanges — centralized and decentralized — have their own advantages and disadvantages. 

This is precisely why we’re in dire need of a new type of exchange that can combine the best of both worlds. Vietnamese blockchain KardiaChain does exactly that with the launch of KAIDEX. 

🔷The Feud Between CEXs and DEXs 

CEXs (centralized exchanges) have been around since the inception of cryptocurrencies. Even today, the most popular crypto exchanges are centralized. They are known for their unmatched ease of use, good user experience, and the ability to trade tokens from across all blockchains.

Even fiat to crypto conversions on these exchanges are quite simple, and the trading volume is high, making it easy to trade tokens. However, their centralized nature allows exchanges to retain maximum control of the users’ assets with themselves. In addition to this, they require complex KYC and AML procedures and are still prone to cyber-attacks.

Now, DEXs (decentralized exchanges) came into the picture to overcome these problems and give users a true sense of ownership of their assets. In the case of DEXs, users need not trust a centralized authority but an automated protocol. These protocols offer users full control of their assets, unprecedented levels of security, and negate the need for KYC procedures. 

With such standout features, you might think that DEXs are an obvious choice for traders. But that’s far from the truth. 

Trading on DEXs requires complex knowledge and is not suitable for most new users. They also do not support fiat currency transactions and liquidity is always a challenge. So, when users choose a DEX, they’re forced to give up on the convenience of a CEX. On the other hand, when they choose a CEX, they’re forced to give up control of their assets. 

This problem has bothered crypto traders for years together, and now finally, we might have a solution in the form of KAIDEX and other hybrid exchange solutions.

🔷Combining the best of both worlds

To solve this age-old feud between CEXes and DEXes, we need a new technology that can combine the best aspects of both these exchanges. This is what KardiaChain aims to achieve with the launch of KAIDEX.

KAIDEX is the first-of-its-kind crypto exchange platform that combines the ease of use of centralized exchanges with the transparency and security of decentralized exchanges. It makes use of the novel Dual Node technology developed by KardiaChain itself. This technology allows simultaneous access to the ledgers of KardiaChain and other blockchain networks.

It lets traders retain full control of their assets while being able to transact with fiat currencies and switch between blockchain networks. The main objective of KAIDEX is to facilitate high-speed transactions, high liquidity, and a simple user experience for traders across the globe. In other words, it aims to provide a centralized user experience on a decentralized platform. 

KAIDEX is also working towards facilitating low transaction fees, faster transactions, low slippage, and limit stop loss, and market orders. New technology like this could finally solve the dilemma traders faced for years and increase the mainstream adoption of cryptocurrencies. 

In the words of KardiaChain’s CTO, Huy Nguyen, “KardiaChain’s Team is working hard to build a user-centric platform. We want to bring users the ultimate DEX experience and aim to increase mass adoption of blockchain and crypto with our unique products.”

🔷What does the future hold?  

Cryptocurrencies and digital assets are still quite new to the market. Despite this, their innovative nature and wide range of use cases garnered attention from people across the globe. They’ve now become so popular that our traditional financial system seems to have a worthy opponent as starting a crypto exchange is now possible. 

But for such a future to unfold, we need to make the trading of digital currencies simpler and more secure. This is why platforms like KAIDEX and open-source tech solutions are absolutely necessary to solve the crypto trading problems of today and push for a future where cryptocurrencies are adopted by the masses.