[phire]

Fun fact, centralized crypto exchanges don't use crypto internally, it's simply too slow.

As a contractor, I helped do some auditing on one crypto exchange. At least they used a proper double-entry ledger for tracking internal transactions (built on top of an SQL database), so it stayed consistent with itself (though accounts would sometimes go negative, which was a problem).

The main problem is that the internal ledger simply wasn't reconciled with with the dozens of external blockchains, and problems crept in all the time.

[oblio]

> Fun fact, centralized crypto exchanges don't use crypto internally, it's simply too slow.

I know you're not arguing in their favor, just describing a reality, but the irony of that phrase is through the roof :-)))

Especially the "centralized crypto".

[phire]

Yeah, that fact alone goes a long way to proving there is no technical merit to cryptocurrencies.

The reason they are now called "centralised crypto exchanges" is that "decentralised crypto exchanges" now exist, where trades do actually happen on a public blockchain. Though, a large chunk of those are "fake", where they look like a decentralised exchange, but there is a central entity holding all the coins in central wallets and can misplace them, or even reverse trades.

You kind of get the worst of both worlds, as you are now venerable to front-running, they are slow, and the exchange can still rug pull you.

The legit decentralised exchanges are limited to only trading tokens on a given blockchain (usually ethereum), are even slower, are still vulnerable to front-running. Plus, they spam those blockchains with loads of transactions, driving up transaction fees.