Opinion by: Ido Ben Natan, Co-Founder and Blockaid CEO
Centralized exchanges (CEX) have controlled what people can exchange for years. If a token is not listed in major exchanges, it does not exist for most users. That system worked with a small crypto. But now? It is completely broken.
Solana-based memecoins, the population of projects such as Pump.Fun and developments in the creation of AI-driven token drives the creation of millions of new tokens each month.
The exchanges have not changed to maintain. That should change. CEO CEO Brian Armstrong recently weigh On the topic, saying that the exchanges should move from a listlist model to a blocklist model, where all can be purchased unless it is a scam.
In many ways, this is the Kodak moment for CEXs. Kodak’s failure to adapt to digital photography became a child poster of the failed approach. Today, exchanges are faced with the same threat. The former way of doing things is not just slow – obsolete. The real question is: What’s next?
The old model prevents exchanges
CEXs are first built to make crypto feel safe and familiar. They modeled their approach after the traditional stock market -carefully to -Betting each token before it was listed. This system is designed to protect users and keep regulators happy. However, crypto does not work like the stock market.
Unlike stocks, which require months of filing and approved before going to the public, anyone can create a token immediately. The exchanges cannot be maintained. The recent Trump coin launching is a great example. It was launched on January 17 and immediately shook the value, but at this time listed in significant CEXIt is past its climax.
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For exchanges, this is not just a problem with efficiency – this is a battle for safety. The policies they are built do not adapt to the reality of crypto. To compete, they must recreate themselves before leaving the market.
CEXs should not fight Dexes
Instead of fighting to maintain timely list processes, exchanges should embrace the open access of the Dexs while maintaining the best parts of centralized trade. Users just want to trade, no matter what asset is officially “listed.” The most successful exchange is to eliminate the need for lists. The list of tokens faster is not enough when the future is an open access model.
This new generation of exchanges will not only list the tokens-they index them in real-time. Each tochain -created token is automatically recognized, with sourcing liquidity exchanges and price feeds directly from decent exchanges (DEX). Instead of waiting for the approved approvement, users will have access to any owner once it has it.
Just accessing is not enough – trading needs to be seamless. Future exchanges will include the implementation of onchain and embedded purses in self-custody, allowing users to buy tokens as easily as they do today. Features such as the magic spend will allow exchanges to fund self-customial accounts demanded, converting Fiat to the required onchain money, route trading through the best available liquidity and securing property without users who need to manage private keys or interact with multiple platforms.
Nothing will change from the user’s perspective – but everything will be different. An entrepreneur will simply click “buy,” and the exchange will hold everything in the background. They will never know if the token is ever “listed” in the traditional sense – they do not need to know.
The biggest roadblock is the security
Moving from an allowlist list to a blocklist is the first step toward a more open access model for CEXs. Instead of deciding which token users can trade, the exchanges will only block scams or malicious properties. While this change makes trading better, it also presents significant security and compliance challenges. The threats will continue to test the system, and effective protections should be implemented.
Regulators expect CEXs to implement compliance more strictly than Dexs. Removing the manual list will require real-time monitoring to stop transactions involving high-risk assets or prohibited activities. Security cannot be reactive; It should be active, close-instant and automatic. Open-access trading can be too dangerous for users and exchanges without this foundation.
The future is open
The way CEX is running today is not built for the future. A manu -approval process of approved for token lists is not size, and as dexes Continue to gain landThe old model becomes a competitive disadvantage.
The logical next step is moving to a blocklist model, where all tokens can be traditional by default except those flagged as malicious or non-compliant. To survive, CEXs must work to replace slow, manual tests with real-time threat threats, onchain security monitoring and automation compliance.
The exchanges that get the right transition-those who include security at the core of an open access model-will lead to the next crypto season. The no? They will be left trying to compete with the Dexs while still using a system that no longer fits the market.
Opinion by: Ido Ben Natan, co-founder and Blockaid CEO.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
