A DEX operates in a global system with different rules and behaviors, which makes it different from traditional Wall Street versions of exchanges that are centralized and highly optimized. Natural market formation and market making lead to liquidity in traditional exchanges, while decentralized exchanges build out protocols to excuse security problems and enjoy high liquidity with openness.
Decentralized exchanges (DEX) have an advantage over centralized exchanges as they are open systems that do not require identity verification and therefore do not face compliance issues.
The podcast discusses the differences between Proof of Work (PoW) and Proof of Stake (PoS) as methods of securing a blockchain, and challenges the idea that PoW is inherently more secure.
The conversation on blockchain consensus is shifting from a focus on Proof-of-Work versus Proof-of-Stake to finding the most efficient way to move from one to N. Integrating different systems such as Proof-of-Useful-Computation may be the solution.