The Importance of Transparency in CEXs

[Ridwan]

It's crucial for crypto exchanges, both CEX and DEX, to be upfront with their users. By sharing clear reports regularly, users can make better choices about where to keep their crypto.

Some exchanges like Bitget are leading the way in openness. Their latest report for the first quarter of 2024 details how many users they have, how much trading happens on their platform, and how they keep things secure. This breakdown helps users understand how the exchange works and how their money is protected. It's revealed that Bitget recently increased their user protection fund to a record high of $612 million, showing their commitment to keeping users' money safe.

Being open like this can go a long way in building trust between exchanges and their users. When people invest in a CEX, they need to feel confident that their money is being handled well and kept safe. As we mentioned before, regular reports can give users that peace of mind.

This brings us to an important question, Are CEXs currently taking sufficient steps to ensure transparency?

[Rahul verma]

Without blockchain, each organization has to keep a separate database. Because blockchain uses a distributed ledger, it records transactions and data identically in multiple locations. All network participants with permissioned access see the same information at the same time, providing full transparency.