Changpeng Zhao, who owns the exchange, had previously claimed that decentralized digital currency exchanges are the future of cryptoindustry. In perspective, the customers will have the chance to use digital wallets without custody in order to engage in cryptotrading on a p2p basis, fully controlling their assets.
Decentralizing a cryptoexchange shifts the majority of its income to the fees accumulated by the cryptoexchange. However, DEXs also have the ability to charge a built-in fee, put in the smart contracts, which the network uses for transaction broadcasting to main platforms of public networks, Such as Ethereum.
Almost a year ago, Vitalik Buterin of Ethereum expressed his admiration of the EtherDelta’s model of DEX, in order to motivate devs to engage in the network maintenance.
It was then, when a digital currency customer in South Korea has introduced Binance to Buterin via Twitter, pointing at its 0.05% fee. However, Buterin’s response was that centralized cryptoexchanges, no matter the transaction speed, require an account set-up, whereas DEXs support already existing digital wallets, such as MetaMask to engage in cryptotrading.
With increasing adoption of digital currencies the fiat will turn irrelevant in the cryptoexchange market, seeing more and more merchants moving from centralized exchanges to DEXs.