Decentralized Bitcoin exchange is handling millions anonymous transactions a week

By Selena 12/23/19 10:42 AM

2019 is said to be the year of DEX. However, in reality, there are very few decentralized exchanges that gain a foothold in the cryptocurrency market. And as governments around the world force paranoia to launder their money on Bitcoin exchanges, alternatives are emerging for those who want to be truly decentralized.

Anonymous Bitcoin transactions are emerging

In addition to DEX exchanges, Localbitcoins also significantly supports the buying and selling of Bitcoin for people in countries with strict government control, especially in South America and Asia.

Currently, there are quite a few decentralized exchanges that use anonymous networks like Tor to run Bitcoin nodes. According to Trustnodes, the Bisq exchange is processing millions of Bitcoins each week through Tor.

The report stated:

“It often seems the dominance and vulnerability of centralized exchanges is the Achilles heel in the current Bitcoin ecosystem.”

Bisq Bitcoin decentralized exchange interface, Dec 2019

DEX uses Bitcoin node and desktop software instead of a centralized website to process up to $ 8 million per week in peer-to-peer transactions with Bitcoin.

The report adds that the system has been designed to run automatically with buyers and sellers choosing their own payment platform for fiat transactions. The platform uses arbitration and the DAO as the governance system to resolve disputes if a party abuses trust granted to the transaction.

There is also a complex revenue generation system for transaction costs and developer support. Bisq is even beyond the reach of ICANN and the ISP because all can be run from a home computer using a proxy.

The exchange started in 2016 but started to become popular because even LocalBitcoins did not yield to the stringent KYC regulations in some countries. Many countries are simply banned from using some of the top centralized exchanges due to their overzealous regulations.

Binance has blocked Wasabi withdrawals

Binance recently blocked Wasabi withdrawals to comply with local Singapore regulations. Wasabi is a privacy-focused Bitcoin wallet that includes Tor and the merge function.

Binance users took to Twitter last week to express their anger about exchanging with their government requests for personal and financial information.

Bitcoiners be warned: this is what happens if @BinanceSGD finds you withdrawing to @wasabiwallet

Not surprised that my transactions are tracked, it’s KYC after all

But I’m very concerned that Binance knew I was sending to wasabi, when all I input was a bc1 address, nothing more pic.twitter.com/T6ePjahESY

— Catxolotl (@bittlecat) December 19, 2019

The crypto world needs more real decentralized exchanges but it is becoming a bigger battle with governments clearly not wanting people to transfer their money around anonymously.