With the blockchain in itself being a decentralization enabler, how can exchanges remain so centralized? Decentralization that is core to the entire crypto-ecosystem is enabled on exchanges through a technology known as atomic-swaps. Decentralized exchanges such as waves, barterdex, etc. enable one cryptocurrency to be exchanged for another at the current exchange rate. This enables almost frictionless, movement of currencies and tokens globally.
Makes me wonder why forex trade is rife with between 2% and 10% commissions per trade.
Atomic swaps enable trade amongst currencies using smart contracts, that prevent seller and buyer defaults. The decentralized exchange is responsible for creating and holding the value being exchanged as part of the contract. Usually, decentralized exchanges have their own tokens that in some ways are used to guarantee this asset transfer. In exchange, some decentralized exchanges charge a very small fee (0.01%) for each such atomic swap, in the exchange’s token.