As we know – Dex development is a world financial trend right now. Have you gotten the latest news and knowledge about this aspect? Let’s talk about Dex development from A to Z in this article below.
A decentralized exchange (or DEX in short) is defined as an autonomous financial protocol powered by smart contracts and a peer-to-peer payment system. In a DEX, traders can transfer digital assets to others and all transactions are recorded and viewable on the blockchain. DEXs do not involve any intermediaries for clearing transactions, instead, they use smart contracts to execute and verify transactions.
As we know Dex development brings advantages for users such as:
Developing a DEX that provides privacy and security makes advantages in trading cryptocurrency. DEXs are not custodial, which makes them more secure than CEX. DEXs do not require users to share control of private keys in order to make successful transactions, while CEXs hold the private keys of their customers on their behalf. This leads to the fact that if CEX is hacked, private keys can be exposed and customers’ digital assets can be stolen. In addition, there is no third-party organization in the process of performing trading operations on the DEX as all operations are verified and executed by smart contracts and blockchain technology.
DEX keeps traders anonymous which keeps traders away from leaking personal information. Different from CEX, DEX does not require customers to create an exchange account, verify identity, and provide personal information such as passport, ID card or face verification through know-your-customer (KYC). It would be a big deal if this important personal information was hacked and used by cybercriminals like counterfeiting or money fraud. Therefore, decentralized exchanges without identity checks ensure that customer information cannot be leaked.
Diversify Cryptocurrencies in DEX make advantage of building and trading currency. As of August 2021, almost 6000 cryptocurrencies are appearing on the market. However, CEX only accepts transactions with listed cryptocurrencies and applies safety standards to ensure profitability and legal compliance. Usually, centralized exchanges only support the most popular cryptocurrencies available on the market. Meanwhile, the DEX accepts not only well-known coins but also less popular cryptocurrencies, providing an opportunity for these tokens to participate in trading activities. As a result, many traders have started using DEX for online trading as it offers a larger range of altcoins than CEX. With a DEX, users can exchange the latest cryptocurrencies that were previously difficult to trade.
DeFi and NFT Integration – one of the most important matters of information security. DeFi and NFT are getting more attention than ever. DeFi industry has seen rapid growth since Dapps and NFTs are hot trends nowadays. In July 2021, the Dapp sector reached more than 1.4 million daily users, an increase of nearly 24% from the previous month. 2021 is also a big year for NFT-based projects, especially in the gaming sector, such as Axie Infinity – an NFT game developed by a Vietnamese team. With DeFi development, DApp development, and NFT development growing rapidly, DEXs can be strong facilitators.
Hope that you got an informative article – don’t forget to follow our blog in order to get more news about DEX as well as relative matters.
Contact SmartOSC here.
Increased acceptance and knowledge sharing have aided the spontaneous growth of cryptocurrency over the last…
Blockchain can be intimidating to research, but attending cryptocurrency events is one of the best…
Blockchain has made inroads into all major industries and is also becoming a part of…
In recent years, blockchain lending solutions have grown in popularity as a way to earn…
The scalability trilemma is still one of the blockchain's most pressing issues. Here are some…
Many people are looking for ways to get involved in the crypto world as the…
