What is DEX?
Decentralized Exchange (DEX) is a place to trade cryptocurrencies, completely open source. So who controls the transaction process? The answer is that it is fully automated, and transactions are executed and controlled by the users themselves.
How does DEX work?
Essentially, proxy tokens – which are crypto assets that represent fiat money or cryptocurrencies – are created through a decentralized multi-signature escrow system. The servers of the decentralized exchange are distributed, which means that their servers are spread out to avoid server downtime.
Different from the traditional centralized system, this system uses an automated peer-to-peer (P2P) payment network without a central authority. Coins are held only by the owner and stored securely in a wallet, secured by a single key. This makes it a “reliable system”. If the funds are held by the owner, there is no need to trust a 3rd party. To add to that, the disclosure of personal information is not required, as it often happens with centralized transactions. central. Anonymity is the key as well as the breakthrough of DEX.
The decentralized system is also different from the centralized model in which users deposit their funds. When a user prepares to withdraw those funds, they are exchanged back into the cryptocurrency they represent and sent to the owner. In a decentralized exchange, you can set up an account and start trading immediately.
If DEXs are so great, then why aren’t they dominating the market yet?
- Up until now, there are a few downsides to the DEX system that make it a challenge to move up.
- The lack of flexibility compared to the more prevalent centralized transactions. It’s a pity that there’s no user support and a shabby UI (user interface) won’t be able to attract a basic user base.
- Some decentralized transactions require the user to be online in order for an order to be listed by them and for a transaction to be executed, requiring the user to perform certain actions is similar to signaling a transaction. payment has been received.
- Trading features such as margin trading, lending and stop loss are not yet present in the decentralized model, as they only allow trading of the underlying currency. with a given value.
- Sometimes a transaction is degraded by the network.
All issues are taken seriously. As the entire Blockchain industry develops rapidly and the demand increases every day, experts are working hard to consider solutions.
Which DEX Platforms You Should Consider Using.
1. Bancor . Protocol
Bancor has created a unique Token Relay technology, which is basically a simple and “always ready to use” online converter. Its purpose is to solve the problem of flexibility. If the ways in which users conduct transactions in cryptocurrencies can be simplified and unified, it is not hard to imagine demand for such assets could increase further. again.
Right now, there are about 30 coins available for conversion and trading in the Bancor network – including Tokenbox (TBX).
2. Waves Dex Exchange
This is a decentralized exchange, based on Waves Blockchain technology. It allows users to trade their tokens – including WAVES, BTC and other assets on Waves platform – completely trustless and without having to move funds to a centralized exchange. central.
3. OpenLedger Dex Exchange
OpenLedger is a Blockchain-based company with headquarters in Denmark. It offers decentralized solutions to the crypto market. OpenLedger Dex leverages BitShare’s graphene technology to power its services.
4. CryptoBridge Exchange DEX
CryptoBridge is a fresh take on the crypto trading markets. CryptoBridge is a decentralized exchange that is moving to the top of the BitShare network. It supports decentralized trading of all Altcoin pairs without any errors. Only one user holds the private keys and has access to the account.
5. Bisq Exchange (aka BitSquare)
Bitsquare is a peer-to-peer (P2P) marketplace for crypto assets. It is a completely decentralized exchange, which does not require a name, email ID or any other confirmation.
To be a truly anonymous peer-to-peer network, it must use Tor and not hold fiat or Bitcoin on their servers or accounts. Every aspect of the exchange is decentralized from placing orders to integrating and executing it.
Why can DEX become the future?
Amazingly all the projects listed above have reached the crypto industry between 7 – 9 months ago. Clearly the market has serious premonitions against cryptocurrencies and other decentralized accounts.
At the same time, the latest international regulatory efforts, especially China’s delisting strategy and North Korea’s cautious policy, have boosted demand for the development of DEX exchanges like never before. .
Keep in mind that for all the negatives present, they are the only way digital currencies can survive and thrive. The benefits that DEX exchanges offer (give owners control of their accounts, confidentially, protect users from hacking and no server downtime) will ultimately reduce disadvantages.
The article is translated from the website www.ccn.com by the author Vladimir Smerkis – co-founder and managing partner of Tokenbox – a unique system that combines cryptocurrencies on the one hand under the control of a portfolio. Professional investors and traders, on the other hand, are investors.
According to Tapchibitcoin.vn
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