A decentralized cryptocurrency exchange is an exchange market that utilizes blockchain or another decentralized technology to enable peer to peer transfer of digital assets without reliance on a trusted third party to hold funds.
Centralized cryptocurrencies exchanges have experienced significant hacks and loss of funds due to problems with cryptocurrency security. The Mt. Gox exchange was forced to halt trading and declare bankruptcy in 2014 and after hot wallet private keys were compromised and approximately 744,000 BTC were stolen. Bitfinex Cryptsylost millions of dollars in BTC which were socialized throughout the community. Bitfinex. QuadrigaCX.
Many decentralized exchanges are launching . A variety of protocols intended to develop standards for interoperability for decentralized exchanges such as 0x are being developed.