Is the future of crypto really decentralization? While one could argue that decentralization in the ethos of the crypto industry, someone could easily argue that this is not the truth. A new report made by TokenInsight goes on the way of explaining how the industry continues to be largely centralized.
Despite the creation of many decentralized crypto exchanges in the last two years, most centralized exchanges continue to control the industry.
According to the 2018 Cryptocurrency Exchange Annual Report created by TokenInsight, which looked to over 400 global crypto exchanges, decentralized exchanges are just 19% of the global ecosystem, but their volume is actually less than 1%.
These figures are, indeed, very low, and they project to bleak future for the industry. If even with 19% of the exchanges being decentralized we still have a volume of less than 1%, this will actually hardly change. Why? Because when the industry gets mainstream, chances are that most people will choose centralized options.
They are far more easy to use and the larger part of the population does not care so much about decentralization, especially the larger institutional clients.
Despite Numbers, Decentralized Platforms Gained Traction in 2018
Curiously enough, the industry actually improved on decentralized exchanges last year. With several new upgrades and infrastructures on the market, according to the information from the research. It seems to be full-fledged growth, the market is simply small when compared to the whole industry.
These are problematic, however, as decentralized exchanges are more transparent and have less issues than their centralized couterparts. Why are people choosing them, then? Because they are easy to use and big. Coinbase and Binance are huge today and the chance that they will be fairly bigger than that they will know of a small decentralized exchange.
The centralized exchanges are often hacked and having problems, as well as "problems of opaque trading rules". The report is optimistic on many exchanges, but one could be very skeptical of a change when you consider it as a power Binance, OKex and other centralized exchanges have.
According to the reports, the first quarter of 2018 was the spike of usage for decentralized exchanges. They rose 195% when compared to the last quarter. However, they started trading in a significant way after the third quarter of the year.
This article was written in Italian. This article was written in the press release.
What can be expected in 2019? It is sure to be positive to beleive that they stand to chance against their centralized counterparts so soon.