A member of the development team behind decentralized crypto exchange protocol Loopring recently reached out to Cornell professor and blockchain expert Emin Gun Sirer, for his thoughts on the future of DEXs. Sirer claimed that they have the potential to be even more secure and trustworthy than traditional Wall Street fiat trading.
Loopring offers the technology on which developers can build an efficient and secure decentralized exchange, and it also runs its own DEX with its native LRC crypto token. He contacted Sirer directly, asking “What do you think about current DEX technology?” and “What should DEX focus on in order to have mass community adoption?”.
Thanks for being a #DEX supporter and adopter #EminGunSirer. We are all technology driven believers. Build up trustworthy exchanges, lead Wall Street. @el33th4xor @loopringorg #Noncustodial #Loopring #blockchain #SEC #ETF pic.twitter.com/ov060X7a5C
— Jay (@jfromsep) January 23, 2019
Sirer started his reply by saying “I love DEXs”, before going on to point out a common misconception that currently exists regarding the trustworthiness of crypto exchanges compared to their fiat equivalents. He claims that the SEC repeatedly rejects crypto ETF proposals because of the potential for manipulation in existing crypto exchanges. However, fiat exchanges themselves are “total messes” and require multiple audits at different layers in order for them to function in a way that is resistant to manipulation.
Read more: Why hasn’t the SEC approved a Bitcoin ETF yet?
According to Sirer, the nature of cryptoassets means that DEX developers are in a position to build platforms that offer more trustworthy trading than that offered by Wall Street and other leading fiat exchanges. He believes they will be able lead the way in this field, and make traditional institutions see that “you all need to up your game and adopt our technology”.