DEXs Are Already Here, but Are They Really Decentralized?

Decentralized exchanges are live and running but they're facing an ongoing liquidity problem that is currently handled by centralized exchanges and in some cases- with less-than-honest methods.

Despite the need for liquidity management in any market, there are already a number of decentralized exchanges are active and trading.

IDEX is the only decentralized Ethereum exchange active within the cryptocurrency market and currently boasts a modest 24-hour trading volume of $6.6 million.

There are a number of other Ethereum-specific decentralized exchanges, such as EtherDelta and 0x - the latter intends to not only eliminate centralized exchange structure but also completely decentralize the governance structure of an exchange.

Decentralized exchanges may not be ready for prime time, but there are a number of changes afoot within the cryptocurrency exchange landscape that could bring integrity and transparency integrated into centralized exchanges.

White hat community token project Hacken recently launched Crypto Exchange Ranks, a platform that provides live analysis of data gathered from accounts opened on cryptocurrency exchanges.

"Fifth, counterparty risks of crypto exchanges might be mitigated by segregating depository activity by cold and hot wallets. Sixth, market needs for standardization and certification, mapping of PCI DSS and ISO 27K standards to crypto exchange market."

As a result, the project would deliver a hybrid of decentralized and centralized approaches to promote exchange transparency.

Centralized exchanges are at least aware of the threat DEXs present to their current dominance.

Binance, one of the largest exchanges in the world, announced its intent to create a hybridized DEX via its Binance Chain project earlier this year, predicting that "Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence."