KYC and Decentralization

by | Oct 27, 2021 | Resources | 0 comments

When Bitcoin came out, I instantly fell in with the popularity because not only am I a fan in general, everyone love the complexity behind them. KYC and Decentralization is primarily associated with centralization. Thereby a centralized crypto-related firm is going to need its users to verify their identity before it allows them use its servicesmost of the time. Moreover this makes sense, since the organization in question needs to adhere to certain regulations that are in place. It is good to know about KYC and Decentralization.

While on the other hand, the decentralized crypto trading platforms don’t need to have KYC checks. Thereby meaning, you can actually trade cryptocurrencies in an anonymous fashion. It is granted that decentralization is the core principle behind crypto technology; in general, it would seem like a no-brainer.

More precisely in reality, however, most things are much more complicated than that. Many people are interested to run their own exchange platform with the assistance of Cryptocurrency Exchange Script or by perfect Bitcoin Exchange Script.

Primarily the decentralized cryptocurrency exchanges are often said to be unsafe. One can witness anonymity in great, but it also tends to bring in a lot of malicious aspect of parties, too. Also you never know who’s on the other side of the screen perhaps it’s actually a legitimate person, but it could be a scammer, as well. In case if they are able to steal your crypto assets, the platform being decentralized, there would be no way to trace the thief, and actively find them. Most of them are interested to run their own exchange platform with the help of Cryptocurrency Exchange Script or by quality BitcoinExchange Script.

The following menace that’s rather evident from the instant given above is that you never really know who’s actually behind the decentralized exchange platform. So if the owners are anonymous, there can’t be anyone accountable if, say, they were actually to draw out all of the liquidity, and highly run away with user funds. Also it wouldn’t be the first time when such kind of scandal happened, either. Finally the KYC and Decentralization brings in good security, reliability, and nice accountability.

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