Andreas M. Antonopoulos

Are DEXs Actually Decentralized? Is that a DEX or a CEX? 5 Ways to Tell the Difference

That DEX you're using, is it really a DEX (decentralized exchange)? Or is it more of a CEX (centralized exchange)? How decentralized are DEXs? Well, which part of it is decentralized? Does it enable peer-to-peer exchange? Is a business running it? Does it require KYC/AML? In this video Andreas discusses what a DEX actually is and reviews 5 criteria you can use to figure out how decentralized the exchange is that you're looking at.

0:00 Is DEX just a marketing word?
0:17 The word decentralized is not a definition, it describes a spectrum, it describes a group of behaviors
0:45 Difference between DEX(decentralized exchange) and CEX(centralized exchange)
1:16 Is it custodial or non-custodial? Does it require some kind of identification?
2:08 Does it operate across multiple cryptocurrencies and blockchains or is it limited to one?
2:53 Does it have a decentralized order book or does it rely on a central service for matching buyers and sellers? What is the interface you're using to access it?

This was one of many questions I answered on DEXs during a bonus livestream on August 15, 2020. Watch the entire Decentralized Exchange livestream:

Related Videos: 
Bitcoin Q&A: Decentralized exchanges with fiat –

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Music: "Unbounded" by Orfan (

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