5000.00 Indian ₹ What might be the risks or limitations of centralization that DEXs aim to overcome? Irving

Published date: December 3, 2024
  • Location: Irving, Irving, Texas
What might be the risks or limitations of centralization that DEXs aim to overcome?
What might be the risks or limitations of centralization that DEXs aim to overcome?

Centralized Exchanges (CEXs) face several risks and limitations that Decentralized Exchanges (DEXs) aim to address. Key issues with CEXs include security vulnerabilities, as they are prime targets for hacking, and the risk of losing funds due to mismanagement or insolvency. Additionally, CEXs often lack transparency, requiring users to trust a central authority. They may also impose restrictions on trading based on geographic or regulatory constraints. DEXs mitigate these risks by enabling peer-to-peer transactions, enhancing transparency, and eliminating the need for intermediaries, offering greater control and security to users.
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