From CEX to DEX, finally realizing the complete form of CeDeFi

Introduction:

The Web3 industry is developing too fast, and new things appear every day. Therefore, many daily thoughts are worth recording.

1. OKX's backdoor evolution strategy

The transfer of off-chain transactions to the chain is a major trend. CEX (centralized exchange) is transforming into DEX (decentralized exchange), so major exchanges are doing Web3 wallets and DEX.

But OKX has adopted a "backdoor evolution" strategy instead of creating an independent DEX application or Web3 wallet.

The CEX in OKX is gradually weakened, and the DEX is gradually strengthened. So can OKX complete the backdoor evolution in the end?

In other words, OKX's application has always been the same, but the positioning has changed from the original CEX to DEX, gradually transitioning from CEX to DEX, and finally completing the "stealing beams and replacing pillars".

The advantage of this backdoor evolution strategy is that OKX can leverage its existing user base and brand awareness while gradually guiding users to experience decentralized trading capabilities.

Users can experience the advantages of CEX and DEX on the same platform, reducing the cost of learning and adapting to the new model.

And for OKX, it is more economical and efficient to update and maintain a single platform than to manage two independent applications.

2. CEX and DEX are merging

At present, OKX is still in a transition period. CEX is very mature, while DEX is developing rapidly. At this time, the two are no longer clearly divided, but merged with each other.

The most direct manifestation is that CEX and DEX are no longer completely divided into two global mode switches, and many functions are beginning to be connected.

For example, the function of searching for DEX tokens in the recently launched CEX: you can directly search for tokens that are not listed on the OKX exchange, and it is very simple to jump to DEX for trading.

This directly provides OKX exchange users with more than 10 million tokens for trading, breaking the original exchange's token quantity limit.

And connecting CEX with DEX can allow exchange users to enter Web3 more smoothly.

Of course, this integration of functions requires a good grasp of the scene and timing, otherwise the blurred boundaries between CEX and DEX may lead to confusion in the user experience, especially for some users who are not familiar with the concept of decentralization.

3. Higher Dimension: CeDeFi

The integration of CEX (centralized exchange) and DEX (decentralized exchange) can be seen as a manifestation of CeDeFi (Centralized Decentralized Finance).

CeDeFi itself is a concept that attempts to combine the advantages of centralized and decentralized finance.

CeDeFi provides an intermediate option for users who want to enter the DeFi field but are unwilling to face the complexity of a purely decentralized system.

OKX is practicing this fusion by integrating CEX and DEX functions on its platform.

In OKX's strategy, users can not only conduct centralized transactions on one platform, but also conduct decentralized transactions with equal convenience.

This approach is the core idea of ​​CeDeFi, that is, users can experience the convenience of centralization (such as higher liquidity and faster transaction speed) and the freedom of decentralization (such as autonomous control of assets).

However, it should be noted that CeDeFi is not a completely decentralized system. It still retains certain centralized features, such as user identity authentication and exchange operation management.

OKX's model is to provide users with a platform that has both the convenience of centralized exchanges and the openness of decentralized exchanges through this fusion.

CeDeFi represents a potential future direction for the financial world. With its advantages in Web3 (DEX and wallet), OKX has done very well and is worthy of learning for Web3 players.