Author: Matthew Roberts 2016-08-08 00:48:52
Published on: 2016-08-08T00:48:52+00:00
Centralized exchanges play an important role in the Bitcoin ecosystem by allowing efficient price discovery and improving liquidity. While decentralized exchanges may offer greater security, they are not as efficient for speculators who need to enter and exit complex positions quickly. Additionally, traders may not want to switch to a decentralized exchange due to major drawbacks. However, Erik Aronesty suggests using lightning networks for margin trading to avoid centralization that is currently happening on the network. He advocates for a P2P order routing system with market makers running nodes to facilitate routing. This would result in a decentralized exchange with orders matched to users directly, and channel trades executed instantly.
Updated on: 2023-06-11T19:18:10.633348+00:00