CEX v DEX v S-DEX
Note: graphs in this section show only a) transactions and b) wallets involved.

CEXes

Centralized Exchanges are the most important "black box" of the crypto ecosystem, and dwarf their decentralized counterparts in trading volume by several magnitudes due to superior scalability, and in spite of a lack of transparency or a common framework of rules.
The many entities that fall within the definition of a CEX vary greatly among one another, for example Binance uses a single massive hot wallet to process all deposits & withdrawals, while some may use different arrangements.
Centralized Exchange Architecture ( Binance )
Thanks to IntoTheBlock for the data visualization used as reference above

Pros

    Bigger volumes / liquidity
    Cheaper fees
    Maintainable / upgradeable
    Scalability

Cons

    Corporate monsters squeezing you for every cent you're worth
    Hacks and other security risks
    Operating from tax havens
    Wash trading, and abundant varieties of other *dubious* (read: borderline criminal) practices

DEXes

ETH Based standard DEX Architecture
Many in DeFi look somewhat like this, although there are many variations sprouting. They trade cost efficiency (slippage, large arbitrage gaps) for censorship resistance.

Pros

    Censorship resistant
    Trust-less

Cons

    Slippage fees
    High arbitrage opportunities in small pools
    Bad and/or malicious listings (e.g. deploying fake tokens with same name as legitimate project to trick people into buying yours on the wave of their demand)
    Scalability is limited to liquidity directly available
    Only ERC20 (usually) utility tokens

CryptoArena S-DEX

Transactions & Wallets. Click to enlarge.

Pros

    Bigger volumes / liquidity networks
    Non-Profit - distributes revenue generated as activity incentives & performance rewards
    Trust-less
    Maintainable / upgradeable
    Multichain interoperability
    Trade ALL assets of value, however you want
    Limitless Scalability
    Positive Global Economic effects + creates opportunities

Cons

    Long time to market - Requires auditing / bureaucracy / intensive testing
    Expensive and difficult to launch
Last modified 6mo ago