How Decentralized are DEXs? A Classification System for Decentralized Exchanges.

Is Binance DEX decentralized?

Decentralization is a popular term used to market products and services in the cryptocurrency space. However, an exact definition for what classifies a product or service as decentralized is still hotly debated. There are numerous financial tools, exchanges, and blockchains that tout being decentralized but have a considerable amount of centralization in their infrastructure.

Binance DEX, for example, has recently undergone scrutiny for blocking America and 28 other countries from accessing their service — an action indicative of centralization — despite their claim to decentralization.

Is Binance DEX Decentralized?

To answer the question of whether Binance DEX can be considered decentralized or not, we’ve created a framework to classify how decentralized a given exchange is.

We picked some of the most popular exchanges used in the cryptocurrency space and analyzed their operations. Our criteria for a service to be included in this analysis involved it needing to facilitate the exchange of one cryptocurrency for another and be marketed as an exchange.