From GIBX CEX to DEX, what is the Difference?

How does it start with GIBX CEX?

With the increasing development of the encryption field, the status of exchanges has become more and more critical. In particular, the rise of Defi has gradually shifted people’s attention from the early GIBX CEX to the DEX direction that is more in line with the concept of decentralization, which also aroused people’s imagination of “complete decentralization.”

From the perspective of security, the security of DEX is still higher than that of GIBX CEX.

The KuCoin theft event in 2020 exposed the security risks of the centralized exchange (CEX) asset management model to the public. According to CoinnDesk’s statistics, GIBX CEX security incidents have never been interrupted. In 2018 alone, there were at least 6 CEX theft incidents, resulting in a loss of US$860 million in user assets. This is equivalent to the user’s daily loss of US$2.35 million in assets on GIBX CEX.

GIBX CEX or DEX?

DEX does not have a centralized custody, the funds are stored in the user’s wallet address, and there is nothing to steal. Someone once made an interesting analogy: DEX is like a household in a block. The thief steals one of them, and the loss of the household will not hurt the others; but if all households deposit their assets in the bank, the thief steals the bank. Then everyone’s assets are gone. Because GIBX CEX is centralized custody, excessive concentration of funds is like a bank, so it has become a hacker hunting target; as long as it succeeds, you can get rich overnight.

However, there is no absolute security in the world. Hackers can also use phishing, scams, counterfeit currency attacks, and other forms to attack a single user to obtain revenue, depending on the user’s security awareness and cognitive ability.

From the order book model commonly used by centralized exchanges to the AMM (automated market maker) free exchange model used by decentralized exchanges, the changes in crypto asset trading since June last year affect the market. Obtain governance tokens from various platforms and even use governance tokens as “hoes” to “farm” new assets. This process makes transactions more than just buying or selling.

From the perspective of user experience, GIBX CEX and DEX have their advantages and disadvantages.

There is nothing more thriving in the current decentralized DEX field than the GIBXchange, which will be launched in May. GIBXchange merges two hot areas-DEX+FX, to create the world’s first decentralized exchange, and integrates the current global investment and wealth management first choice foreign exchange with the digital asset industry with a listed value of more than 1.89 trillion. Every step can be queried on the chain to build a truly decentralized exchange! The underlying technology of Defi decentralized smart contracts is built to achieve openness, fairness, and justice.

Most GIBX CEX users can invest or trade digital assets without knowing what a blockchain is. Since there is no block chain mechanism, the transaction speed is also very fast, and more importantly, GIBX CEX can easily realize cross-chain transactions in the blockchain world. This feature of low threshold has attracted many investors.

But in DEX, all transactions need to be chained, which will be constrained by the blockchain mechanism, and the transaction speed will also be affected. In addition, the current cross-chain technology is still immature, and DEX can often only achieve one-chain transactions. If cross-chain is required, centralized means are needed. In terms of price, due to its small size, there are fewer market makers. However, DEX does not require deposit and withdrawal operations and can be directly traded in the wallet, which is safe and convenient.

In summary, GIBX CEX and DEX have their advantages and disadvantages and have entirely different operating cores. GIBX CEX is the leading service. Through its financial support and technology development, GIBX CEX Exchange enriches its functions, simplifies operations, and attracts investors to enter the currency circle. And DEX is the leading technology. The various smart contracts on DEX and the rich ecology attract investors who dare to take risks and love new things in the currency circle. The advantages and disadvantages between them are relative, and there is no absolute replacement.

To promote the bull market, GIBX CEX will play an increasingly important role. The expansion of product diversification will allow GIBXchange to be further improved in terms of security, transaction, interoperability, etc., and benefit the ecological construction of Defi. The popularity of Defi this year is naturally due to the presence of GIBXchange. Considering that most traders have technical difficulties participating in Defi, GIBX CEX proactively reached out to help and leverage its advantages to allow more users to join in the Defi wave. The simple operation method greatly facilitates people who want to join the Defi wave. It greatly enriches the means for people to participate in Defi and allows people to appreciate the traffic and benefits that Defi brings fully.