We are optimistic that some day, there will be excellent fully decentralized exchanges. We intend to sponsor academia and support multiple projects in this space. Exchanges need to be fast, scalable and avoid problems such as order book front-running. For the time being, most decentralized exchanges demonstrate weaknesses one at least one of these factors. Some hybrid models are attempting to get the best of both world. Over time there will be better, more decentralized exchanges available. - rambo1stbld https://www.reddit.com/r/IAmA/comments/8p456q/we_are_binance_labs_a_blockchain_technology/e08cvi4/

Opinions are mine, not those of Binance Labs: I believe the biggest innovation in near term happens in the protocol level, as the change blockchain brings is more of a structural/horizontal change. But there are certain issues we need to solve for this innovation, including Scalability, Decentralization, Privacy, Security and Compliance. We are looking for projects who are solving the scalability issue without sacrificing interoperability, achieving decentralization while ensuring efficiency, preserving privacy while not compromising transparency, enhancing security while promoting usability and being compliant. - christychoi https://www.reddit.com/r/IAmA/comments/8p456q/we_are_binance_labs_a_blockchain_technology/e08ehdc/

Some promising hybrid exchanges are testing decentralized custody combined with centralized order books. I came across one project that was attempting the reverse. This space is evolving very rapidly and I look forward to learning about creative solutions for improving the crypto market's efficiency. - rambo1stbld https://www.reddit.com/r/IAmA/comments/8p456q/we_are_binance_labs_a_blockchain_technology/e08irq9/