Centralized v. Decentralized Wallets & Exchanges: How Stibits Factors In

4 min readFeb 12, 2020


Traditionally, banking and monetary systems throughout history have been, and largely continue to be centralized. The concept of centralization is relatively simple, and self-explanatory: in a centralized simple, one [central] authority maintains ultimate control and influence over a given system. With the advent of blockchain technology and cryptocurrencies came the benefits of decentralization and decentralized monetary systems where users can buy, send, and receive cryptocurrencies completely on their own, and without the need for any centralized authorities to facilitate or process the transaction — centralized authorities which might exert undue influence on the system at some point. At its heart, Blockchain and cryptocurrency technology deliver on the premise of secure and frictionless transactions without the need for a central authority, and so many argue that third-party payment processors and wallets alike should follow the same decentralized model. Yet today, a multitude of centralized crypto payment processors exist and flourish — even in the face of a growing number of decentralized exchanges and wallets. This article will examine the pros and cons of centralized payment processors by comparing them to decentralized payment processors in the context of blockchain technology and cryptocurrency transactions, as to give you — the reader — a solid understanding of both and what they have to offer users.

Centralized v. Decentralized Crypto Exchanges

Centralized wallets and exchanges are trading platforms that, in essence, function in the same way that a traditional brokerage account or stock exchange would. Central exchanges are owned and operated by a central third-party that maintains ultimate authority over the exchange, account, wallet, and transactions. Those using centralized wallets and exchanges often do not have access to the private keys of their exchange account’s wallets, putting them at risk of gross mismanagement and foul play by the centralized third-party. Third party meddling and mismanagement of wallets and accounts has, and will likely continue to prove disadvantageous to users.

In contrast, a decentralized wallet or exchange is one with no central authority whatsoever — completely decentralized, as the name suggests, thus leveraging the capabilities of the underlying blockchain technology. And so, by utilizing the blockchain for this purpose, a decentralized exchange provides users much more data and financial security than a traditional centralized exchange does. A decentralized exchange does not hold onto users’ funds or information (i.e. data) and/or sell it to any third-parties, but instead solely serves as a matching and/or routing algorithm for trade orders, and in the case of Stibits, to add identity to the experience. Due to the decentralized nature of these wallets and exchanges, governments and regulators are also unable to interfere or breach users data/user information, as there is no centralized source by which to gather the data from. However, there are some upsides to using centralized exchanges. Because these exchanges are so relatively new, and the market for decentralized exchanges and wallets is more or less untapped, centralized wallets and exchanges provide for more functionality and features than decentralized wallets. But, as time passes, decentralized wallets will all but assuredly keep pace if not exceed the functionality and features of centralized wallets.

Stibits Decentralized Wallet

Decentralized Wallets and exchanges provide their user bases with more control, authority, and peace of mind — especially with the impossibility of some central authority tampering with their finances or data. For those reasons, Stibits has moved away from the centralized exchange model and created its own propriety, secure, peer to peer decentralized wallet and exchange system that not only facilitates transactions and secures wallets more so than traditional systems, but does so by creating a human profile and simplifying the exchange process altogether. In doing so, Stibits leverages the benefits of blockchain technology and makes it easier for you — the user — to keep track of, send, and receive cryptocurrencies and blockchain assets from your own personalized wallet.

Stibits offers a premium, completely decentralized platform through which users remain fully in control of their privacy and data and can send and receive cryptocurrencies and blockchain-based assets by providing basic information — name, phone number, or email address. Stibits adds a human profile to the blockchain ledger and in doing so makes the process of sending and receiving cryptocurrencies through a decentralized exchange far less daunting than any competitor. With Stibits you will be able to send or request cryptocurrency simply by entering the name, email address, or phone number of the recipient — enabling a completely secure and decentralized peer-to-peer transaction. As noted, Stibits is the first application to fully maximize the utility of the blockchain technology; and in doing so, Stibits has eliminated the need for individuals to have any prior expertise or background knowledge of cryptocurrencies or the underlying blockchain technology in order to send or receive cryptocurrencies in a fast, effective, easy and secure manner.

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