That DEX you’re using, is it really a DEX (decentralized exchange)? Or is it more of a CEX (centralized exchange)? How decentralized are DEXs? Well, which part of it is decentralized? Does it enable peer-to-peer exchange? Is a business running it? Does it require KYC/AML? In this video Andreas discusses what a DEX actually is and reviews 5 criteria you can use to figure out how decentralized the exchange is that you’re looking at.
0:00 Is DEX just a marketing word?
0:17 The word decentralized is not a definition, it describes a spectrum, it describes a group of behaviors
0:45 Difference between DEX(decentralized exchange) and CEX(centralized exchange)
1:16 Is it custodial or non-custodial? Does it require some kind of identification?
2:08 Does it operate across multiple cryptocurrencies and blockchains or is it limited to one?
2:53 Does it have a decentralized order book or does it rely on a central service for matching buyers and sellers? What is the interface you’re using to access it?
This was one of many questions I answered on DEXs during a bonus livestream on August 15, 2020. Watch the entire Decentralized Exchange livestream: https://youtu.be/ugPa1r2OdIU.