Skip to content
Permalink
Branch: master
Find file Copy path
Find file Copy path
Fetching contributors…
Cannot retrieve contributors at this time
376 lines (334 sloc) 25.6 KB
<!DOCTYPE html>
<html lang="en">
<head>
<meta name="twitter:card" content="summary_large_image">
<meta name="twitter:site" content="@atomicwallet">
<meta name="twitter:creator" content="@atomicwallet">
<meta name="twitter:title" content="Atomic Swap VS Centralized Exchanges">
<meta name="twitter:description" content="Transparency and decentralization of the crypto exchange without third parties has always been one of the main goals of blockchain technology. But there is still unresolved problem on the market — most of the major crypto exchanges are centralized.">
<meta name="twitter:image" content="https://atomicwallet.io/css/images/articles/atomic-swap-vs-decentralized-exchanges.png">
<meta http-equiv="X-UA-Compatible" content="IE=edge">
<meta name="description" content="Transparency and decentralization of the crypto exchange without third parties has always been one of the main goals of blockchain technology. But there is still unresolved problem on the market — most of the major crypto exchanges are centralized."/>
<meta charset="UTF-8">
<meta name="viewport" content="width=device-width, initial-scale=1"/>
<title>Atomic Swap VS Centralized Exchanges</title>
<link rel="stylesheet" href="css/main.css">
<link rel="stylesheet" href="css/media-test-blog.css">
<link rel="stylesheet" href="test/css/item-page.css">
<!-- Google Tag Manager -->
<script>(function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':
new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],
j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src=
'https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);
})(window,document,'script','dataLayer','GTM-KBC3CH8');</script>
<!-- End Google Tag Manager -->
<!-- Global site tag (gtag.js) - Google Analytics -->
<!--<script async src="https://www.googletagmanager.com/gtag/js?id=UA-114023091-1"></script>
<script>
window.dataLayer = window.dataLayer || [];
function gtag() {
dataLayer.push(arguments);
}
gtag('js', new Date());
gtag('config', 'UA-114023091-1');
</script>-->
<link rel="apple-touch-icon" sizes="180x180" href="/apple-touch-icon.png">
<link rel="icon" type="image/png" sizes="32x32" href="/favicon-32x32.png">
<link rel="icon" type="image/png" sizes="16x16" href="/favicon-16x16.png">
<link rel="manifest" href="/site.webmanifest">
<link rel="mask-icon" href="/safari-pinned-tab.svg" color="#5bbad5">
<meta name="msapplication-TileColor" content="#da532c">
<meta name="theme-color" content="#ffffff">
<!-- Start of Async Prefinery Code -->
<script type="text/javascript">var _pfy = _pfy || [];(function(){function pfy_load(){var pfys=document.createElement('script');pfys.type='text/javascript';pfys.async=true;pfys.src='https://widget.prefinery.com/widget/v2/1w40x3e4.js';var pfy=document.getElementsByTagName('script')[0];pfy.parentNode.insertBefore(pfys,pfy);}if (window.attachEvent){window.attachEvent('onload',pfy_load);}else{window.addEventListener('load',pfy_load,false);}})();</script>
<!-- End of Async Prefinery Code -->
</head>
<body>
<!-- Google Tag Manager (noscript) -->
<noscript><iframe src="https://www.googletagmanager.com/ns.html?id=GTM-KBC3CH8"
height="0" width="0" style="display:none;visibility:hidden"></iframe></noscript>
<!-- End Google Tag Manager (noscript) -->
<!-- menu -->
<div class="header-menu-mobile header-menu-close f-light only-mobile" id="menu-mobile">
<div class="container relative">
<a href="/">Wallet</a>
<a href="https://atomicwallet.io/buy-bitcoin">Buy Bitcoin</a>
<a href="/assets">Assets</a>
<a href="/downloads" class="hvr-grow">Download</a>
<a href="https://support.atomicwallet.io/support/home" target="_blank" class="hvr-grow">Support</a>
<a href="/blog">Blog</a>
<button class="header-menu-mobile-close" id="menu-button-close"></button>
</div>
</div>
<div class="header-container">
<div class="container relative">
<img src="css/images/bg-first-screen.svg" alt class="bg bg-main">
<header class="header">
<a href="https://atomicwallet.io" class="header-logo">
<img src="css/images/logo.svg" alt="Atomic">
</a>
<nav class="header-menu f-light">
<a href="/" class="hvr-grow">Wallet</a>
<a href="https://atomicwallet.io/buy-bitcoin" class="hvr-grow">Buy Bitcoin</a>
<a href="assets" class="hvr-grow">Assets</a>
<a href="/downloads" class="hvr-grow">Download</a>
<a href="https://support.atomicwallet.io/support/home" target="_blank" class="hvr-grow">Support</a>
<a href="blog" class="hvr-grow">Blog</a>
</nav>
<nav class="header-menu-icons f-light">
<a href="https://twitter.com/atomicwallet" target="_blank" class="hvr-float">
<img src="css/images/top_twitter.svg">
</a>
<a href="https://t.me/atomicwalletchat" target="_blank" class="hvr-float">
<img src="css/images/top_telegram.svg">
</a>
<a href="https://medium.com/atomic-wallet" target="_blank" class="hvr-float">
<img src="css/images/top_medium.svg">
</a>
<a href="https://www.facebook.com/atomicwallet" target="_blank" class="hvr-float">
<img src="css/images/top_facebook.svg">
</a>
<a href="https://www.reddit.com/r/atomicwallet/" target="_blank" class="hvr-float">
<img src="css/images/top_reddit.svg">
</a>
<a href="https://steemit.com/@atomicwallet" target="_blank" class="hvr-float">
<img src="css/images/top_steemit.svg">
</a>
</nav>
<button class="header-button only-mobile" id="menu-button-open"></button>
</header>
</div>
</div>
<div class="item-page-container">
<div class="item-page">
<div class="item-page-article">
<h1>Atomic Swap VS Centralized Exchanges</h1>
<div class="item-page-image-template">
<div class="item-page-blog-image">
<img src="css/images/articles/atomic-swap-vs-decentralized-exchanges.png" alt="">
</div>
</div>
<div class="cite"><cite>Atomic Wallet Atomic Swap exchange vs centralized exchanges</cite></div>
<h2>Contents:</h2>
<ul>
<li><a href="#cex">How centralized Exchange works?</a></li>
<li><a href="#breach">Exchange security breach history</a></li>
<li><a href="#download">Download Decentralized Wallet</a></li>
</ul>
<h2>Preface</h2>
<p><b>Transparency and decentralization of the crypto exchange without third parties has always been one of the main goals of blockchain technology.</b>
As of today, however, the situation is the opposite: most of the top crypto exchanges are centralized. <br><br>
At the recent “TechCrunch Sessions: Blockchain” conference founder of Ethereum Vitalik Buterin said:</p>
<div class="item-page-image-template">
<div class="item-page-blog-image">
<img src="https://cdn-images-1.medium.com/max/800/0*d5k3tmfiGn4yT_HU" alt="">
</div>
</div>
<div class="cite"><cite>Ethereum founder Vitalik Buterin: <br>
“I definitely hope centralized exchanges go burn in hell”.</cite></div>
<p>Despite the audience reacting with laughter and ovations, centralized exchanges still remain a monopoly with security issues. Let’s take a closer look at reasons for Vitalik’s statement.</p><br>
<h2 id="cex">How does centralized crypto exchanges works?</h2>
<p>All centralized crypto exchanges work on the same principle: they accept a user’s deposits on their wallets and allow the user to exchange assets as part of the deposit.</p>
<h4>Usually, the process looks like this:</h4>
<ol class="blog-li-longtext">
<li>User creates account and verification is optional. Many exchanges put restrictions on trade volumes and daily withdrawal limit for unverified users (e.g. <a href="https://bittrex.com/">Bittrex</a>, <a href="https://www.binance.com/">Binance</a>)</li>
<li> The user creates an order to buy or sell the coin. Some also exchanges charge a fee for deposits (<a href="https://www.bitfinex.com/">Bitfinex</a>,<a href="https://cex.io/">CEX</a>, <a href="https://www.coinbase.com/">Coinbase</a>, <a href="https://www.bitstamp.net/">Bitstamp</a>)</li>
<li>The exchange takes a trading fee to execute an order. Once complete, the user can withdraw coins to an external wallet, if necessary.</li>
</ol>
<p>Hence, the user pays a withdrawal fee, the network fee and a service fee.</p>
<h4>Pros:</h4>
<ul>
<li>Trading via bots.</li>
<li>Increased liquidity for popular trading pairs.</li>
<li>Automated order execution.</li>
<li>Friendly user interface.</li>
</ul>
<h4>Cons:</h4>
<ul>
<li>The exchange is a centralized solution unsustainable to hacking attacks, regulation and hardware server failures.</li>
<li>Custodial working principles: users must entrust their funds to third-parties.</li>
<li>exchange receives a user deposit and transfers it to a payout (hot) wallet and/or cold wallet. Hence, huge amounts of crypto are accumulated on cold wallets. Frauds can take away up to 90% of users’ deposited savings through security breaches.</li>
<li>Withdrawals may be frozen due to transaction verification issues, hot wallet maintenance, lack of liquidity and so forth.</li>
<li>Trading is available by predetermined trading pairs, usually BTC / ETH / USD pairs. To exchange one coin for another, users must make at least two trades.</li>
<li>Withdrawal limits for unverified users.</li>
<li>Delisting unpopular coins.</li>
<li>Untransparent orderbook and possible falsification of trading volume.
</li>
</ul>
<h2 id="breach">Where's the money?</h2>
<p>Since the early days of Bitcoin cryptocurrency market has evolved into a sophisticated multi-blockchain phenomenon. According to <a href="https://coinmarketcap.com/">coinmarketcap.com</a> statistics, cryptocurrency market contains over 1.5K different currencies with daily exchange turnover of over 14 bln in USD. In addition we should also consider the volumes of intransparent and ​ unregulated peer to peer exchange market as well.</p>
<p>Almost every major exchange has ever experienced security breaches. One of the most disruptive failures was the Mt. Gox exchange collapse. It took a year for the exchange to recover. The list of the publicly known biggest failures of custodian-based centralized crypto exchanges looks impressive for an unprepared spectator:</p>
<div class="item-page-image-template">
<div class="item-page-blog-image">
<img src="https://cdn-images-1.medium.com/max/800/0*Dpf4zlXqBLrg1gbY" alt="">
</div>
</div>
<p>This list is far from complete, but it gives a good picture of the security level in centralized exchanges. However, the good news is that we all can learn a good lesson and come up with some conclusions: ​<b>your funds are not safe unless you own your private keys. Anyone can hack and steal them, and this process is irreversible, unfortunately.</b></p>
<p>As a reaction to the current challenges of the industry <a href="#download">Atomic</a> project was created — a convenient and versatile decentralized solution for the custody-free cryptocurrency trading. <a href="#download">Atomic Wallet</a> platform is based on a unique proprietary engine specially designed to solve its specific tasks.</p>
<div class="item-page-download">
<div class="item-page-download-title" id="download">Download Atomic Wallet</div>
<!-- Subscribe Pop-up-->
<script>window.jQuery || document.write('<scr' + 'ipt src="https://cdnjs.cloudflare.com/ajax/libs/jquery/1.11.0/jquery.min.js"><\/sc' + 'ript>')</script>
<script>window.$kol_jquery = window.jQuery</script>
<script src="https://kickoffpages-kickofflabs.netdna-ssl.com/widgets/1.9.6/kol_bounce.js"></script>
<script src='https://kickoffpages-kickofflabs.netdna-ssl.com/w/113350/220933.js'></script>
<!-- Subscribe Pop-up mobile download-->
<script>window.jQuery || document.write('<scr' + 'ipt src="https://cdnjs.cloudflare.com/ajax/libs/jquery/1.11.0/jquery.min.js"><\/sc' + 'ript>')</script>
<script>window.$kol_jquery = window.jQuery</script>
<script src="https://kickoffpages-kickofflabs.netdna-ssl.com/widgets/1.9.6/kol_bounce.js"></script>
<script src='https://kickoffpages-kickofflabs.netdna-ssl.com/w/113350/223800.js'></script>
<!-- End of mobile download Pop-up-->
<div class="download">
<div class="download-item download-item-windows hvr-grow" data-download="windows">
<a href="https://atomicwallet.io/download/atomicwallet.exe" onclick="window.kol_modal_220933.show()"><img src="css/images/logo-windows.svg" alt="" class="download-item-img-color"></a>
<img src="css/images/logo-windows-color.svg" alt="" class="download-item-img">
<span class="download-name">
<a href="https://atomicwallet.io/download/atomicwallet.exe" class="button download-button" onclick="window.kol_modal_220933.show()" ga('send',="" {="" hittype:="" 'event',="" eventcategory:="" 'download',="" eventaction:="" eventlabel:="" 'windows'="" });="">Windows</a>
</span>
<span class="download-button-label">
<a href="https://atomicwallet.io/download/atomicwallet.exe" class="button download-button" onclick="window.kol_modal_220933.show()" ga('send',="" {="" hittype:="" 'event',="" eventcategory:="" 'download',="" eventaction:="" eventlabel:="" 'windows'="" });="">Download</a>
</span>
</div>
<div class="download-item download-item-apple hvr-grow" data-download="apple">
<a href="https://atomicwallet.io/download/atomicwallet.dmg" onclick="window.kol_modal_220933.show()"><img src="css/images/logo-apple.svg" alt="" class="download-item-img-color"></a>
<img src="css/images/logo-apple-color.svg" alt="" class="download-item-img">
<span class="download-name">
<a href="https://atomicwallet.io/download/atomicwallet.dmg" class="button download-button" onclick="window.kol_modal_220933.show()" ga('send',="" {="" hittype:="" 'event',="" eventcategory:="" 'download',="" eventaction:="" eventlabel:="" 'macos'="" });="">macOS</a>
</span>
<span class="download-button-label">
<a href="https://atomicwallet.io/download/atomicwallet.dmg" class="button download-button" onclick="window.kol_modal_220933.show()" ga('send',="" {="" hittype:="" 'event',="" eventcategory:="" 'download',="" eventaction:="" eventlabel:="" 'macos'="" });="">Download</a>
</span>
</div>
<div class="download-item download-item-ubuntu hvr-grow" data-download="ubuntu">
<a href="https://atomicwallet.io/download/atomicwallet.AppImage" onclick="window.kol_modal_220933.show()"><img src="css/images/logo-ubuntu.svg" alt="" class="download-item-img-color"></a>
<img src="css/images/logo-ubuntu-color.svg" alt="" class="download-item-img">
<span class="download-name">
<a href="https://atomicwallet.io/download/atomicwallet.AppImage" class="button download-button" onclick="window.kol_modal_220933.show()" ga('send',="" {="" hittype:="" 'event',="" eventcategory:="" 'download',="" eventaction:="" eventlabel:="" 'ubuntu'="" });="">Ubuntu</a>
</span>
<span class="download-button-label">
<a href="https://atomicwallet.io/download/atomicwallet.AppImage" class="button download-button" onclick="window.kol_modal_220933.show()" ga('send',="" {="" hittype:="" 'event',="" eventcategory:="" 'download',="" eventaction:="" eventlabel:="" 'ubuntu'="" });="">Download</a>
</span>
</div>
<div class="download-item download-item-debian hvr-grow" data-download="debian">
<a href="https://atomicwallet.io/download/atomicwallet.deb" onclick="window.kol_modal_220933.show()"><img src="css/images/logo-debian.svg" alt="" class="download-item-img-color"></a>
<img src="css/images/logo-debian-color.svg" alt="" class="download-item-img">
<span class="download-name">
<a href="https://atomicwallet.io/download/atomicwallet.deb" class="button download-button" onclick="window.kol_modal_220933.show()" ga('send',="" {="" hittype:="" 'event',="" eventcategory:="" 'download',="" eventaction:="" eventlabel:="" 'debian'="" });="">Debian</a>
</span>
<span class="download-button-label">
<a href="https://atomicwallet.io/download/atomicwallet.deb" class="button download-button" onclick="window.kol_modal_220933.show()" ga('send',="" {="" hittype:="" 'event',="" eventcategory:="" 'download',="" eventaction:="" eventlabel:="" 'debian'="" });="">Download</a>
</span>
</div>
<div class="download-item download-item-fedora hvr-grow" data-download="fedora">
<a href="https://atomicwallet.io/download/atomicwallet.rpm" onclick="window.kol_modal_220933.show()"><img src="css/images/logo-fedora.svg" alt="" class="download-item-img-color"></a>
<img src="css/images/logo-fedora-color.svg" alt="" class="download-item-img">
<span class="download-name">
<a href="https://atomicwallet.io/download/atomicwallet.rpm" class="button download-button" onclick="window.kol_modal_220933.show()" ga('send',="" {="" hittype:="" 'event',="" eventcategory:="" 'download',="" eventaction:="" eventlabel:="" 'fedora'="" });="">Fedora</a>
</span>
<span class="download-button-label">
<a href="https://atomicwallet.io/download/atomicwallet.rpm" class="button download-button" onclick="window.kol_modal_220933.show()" ga('send',="" {="" hittype:="" 'event',="" eventcategory:="" 'download',="" eventaction:="" eventlabel:="" 'fedora'="" });="">Download</a>
</span>
</div>
</div>
<div class="only-mobile">
<span class="download-text f-light only-mobile"> Manage your Bitcoin, Ethereum, XRP, Litecoin, XLM and over 300 other coins and tokens.</span></div>
<div class="mobile-download-button">
<div class="download-item-app hvr-grow" data-download="android">
<a href="https://play.google.com/store/apps/details?id=io.atomicwallet&referrer=utm_source%3Dwebsite" target="_blank" ga('send',="" {="" hittype:="" 'event',="" eventcategory:="" 'download',="" eventaction:="" eventlabel:="" 'android'="" });=""><!-- <img src="css/images/OS/googleplay.svg" width="80%" alt class="download-item-img-color"> -->
<img src="css/images/OS/googleplay.svg" width="80%" alt class="download-item-img"></a>
</div>
<div class="download-item-app hvr-grow" data-download="iOS">
<img src="css/images/OS/appstore.svg" width="80%" onclick="window.kol_modal_223800.show()" alt class="download-item-img">
</div>
</div>
<!-- <div class="button-suggest">
<div class="button-left">
<a href="https://atomicwallet.io/tron" class= "suggest-articles-button">
<img src="css/images/articles/icons/arrow-left.svg" alt="">
Read about TRON</a>
</div>
<div class="button-right">
<a href="https://atomicwallet.io/ripple" class= "suggest-articles-button">
Read about Ripple <img src="css/images/articles/icons/arrow-right.svg" alt=""></a>
</div>
</div> -->
</div>
</div>
</div>
<footer class="footer-new">
<div class="container relative">
<div class="footer-row">
<div class="footer-new-left">
<a href="/"><img src="css/images/logo.png" alt="" class="footer-new-logo"></a><br>
<a href="mailto:support@atomicwallet.io" class="footer-new-email f-light">support@atomicwallet.io</a><br>
<div class="footer-new-soc">
<a href="https://twitter.com/atomicwallet" target="_blank">
<img src="css/images/top_twitter.svg">
</a>
<a href="https://t.me/atomicwalletchat" target="_blank">
<img src="css/images/top_telegram.svg">
</a>
<a href="https://github.com/Atomicwallet" target="_blank">
<img src="css/images/top_github.svg">
</a>
<a href="https://medium.com/atomic-wallet" target="_blank">
<img src="css/images/top_medium.svg">
</a>
<a href="https://www.reddit.com/r/atomicwallet/" target="_blank">
<img src="css/images/top_reddit.svg">
</a>
<a href="https://www.facebook.com/atomicwallet" target="_blank">
<img src="css/images/top_facebook.svg">
</a>
</div>
</div>
<div class="footer-new-right">
<div class="footer-new-cols">
<div class="footer-new-col">
<div class="footer-new-col-title">Atomic Wallet</div>
<ul class="f-light">
<li><a href="https://support.atomicwallet.io/">Support</a></li>
<li><a href="https://t.me/atomicwalletchat">Telegram chat</a></li>
<li><a href="https://atomicwallet.io/terms-of-service">Terms of service</a></li>
<li><a href="https://atomicwallet.io/privacy">Privacy policy</a></li>
<li><a href="https://drive.google.com/drive/folders/1zbu1nKCBq2zNCnEtjWsw3oMJei6aFSuZ">Press Kit</a></li>
</ul>
</div>
<div class="footer-new-col">
<div class="footer-new-col-title">Buy Cryptoсurrency</div>
<ul class="f-light">
<li><a href="https://atomicwallet.io/buy-bitcoin">Buy Bitcoin (BTC)</a></li>
<li><a href="https://atomicwallet.io/buy-litecoin">Buy Litecoin (LTC)</a></li>
<li><a href="https://atomicwallet.io/buy-ethereum">Buy Ethereum (ETH)</a></li>
<li><a href="https://atomicwallet.io/buy-ripple">Buy Ripple (XRP)</a></li>
<li><a href="https://atomicwallet.io/buy-bitcoin-cash">Buy Bitcoin Cash (BCH)</a></li>
</ul>
</div>
<div class="footer-new-col">
<div class="footer-new-col-title">Assets</div>
<ul class="f-light">
<li><a href="https://atomicwallet.io/bitcoin-wallet">Bitcoin (BTC)</a></li>
<li><a href="https://atomicwallet.io/ethereum">Ethereum (ETH)</a></li>
<li><a href="https://atomicwallet.io/ripple">Ripple (XRP)</a></li>
<li><a href="https://atomicwallet.io/litecoin">Litecoin (LTC)</a></li>
<li><a href="https://atomicwallet.io/eos">EOS</a></li>
<li><a href="https://atomicwallet.io/neo">NEO</a></li>
<li><a href="https://atomicwallet.io/tron">TRON (TRX)</a></li>
<li><a href="https://atomicwallet.io/dogecoin">Dogecoin (DOGE)</a></li>
<li><a href="https://atomicwallet.io/cardano">Cardano (ADA)</a></li>
<li><a href="https://atomicwallet.io/dash">DASH</a></li>
<li><a href="https://atomicwallet.io/stellar">Stellar (XLM)</a></li>
<li><a href="https://atomicwallet.io/zcash">Zcash (ZEC)</a></li>
</ul>
</div>
</div>
</div>
</div>
</footer>
<script src="js/jquery-3.3.1.min.js"></script>
<script src="js/jquery.touchSwipe.js"></script>
<script src="js/app.js"></script>
<!-- Go to www.addthis.com/dashboard to customize your tools -->
<script type="text/javascript" src="//s7.addthis.com/js/300/addthis_widget.js#pubid=ra-5c8415a69e34d1d4"></script>
</body>
</html>
You can’t perform that action at this time.