Decentralized Exchanges Must Match Traditional Finance Performance
- DeFi must match traditional finance performance while maintaining verifiability.
- Most digital asset trading is centralized, not utilizing blockchain technology.
- On-chain verifiable actions by intermediaries can improve efficiency over opaque traditional finance.
- Building on Ethereum is crucial for capturing the future of finance.
- The product market fit for decentralized exchanges (DEXs) was insufficient to attract traders post-FTX collapse.
- The low latency of the trading system is achieved through an optimized sequencer, processing 500 million orders daily at a cost under $50,000.
The focus on building in crypto should address significant problems rather than being done for its own sake. Emphasizing real-world issues and leveraging Ethereum’s connectivity can enhance DeFi’s role in the financial ecosystem. The competition between centralized and decentralized exchanges will intensify as DEXs work to improve their market fit and efficiency.
Source (3.2)https://cryptobriefing.com/vladimir-novakovski-defi-must-match-traditional-finance-performance-why-solving-real-world-problems-is-crucial-and-the-evolving-role-of-ethereum-in-trading-empire/?rand=59535
