Crypto exchange DEX and CEX construction with UKBTC Automated Trade Marketplace
London, United Kingdom, 20th Aug 2022, DEX is the abbreviation of Decentralized Exchange. It is a form of operation of a cryptocurrency exchange that is built and operated in a decentralized manner on the platform. At the same time, it also has a special skill that allows transactions to be completed point-to-point on the network blockchain without any intermediary. (UKBTC Automated Trade Marketplace)
With the development of the overall economy, the technological development of blockchain is also becoming more and more mature, and it has been able to fully support the development process of decentralized exchanges. At the same time, with the improvement of technology, decentralized exchanges have now occupied half of the market. Although most people are still accustomed to completing transactions on centralized trading platforms, the problems they face are becoming more and more acute. For example, fake transactions and frequent hacker attacks make users gradually lose confidence, so more and more people are turning to decentralized trading centers to ensure the safety of assets. (UKBTC Automated Trade Marketplace)
In the process of DEX trading, no one or a centralized institution can use your assets. In the decentralized trading center, all links are decentralized and targetless management, such as asset deposits, order information, asset exchange, are all completed under the premise of decentralization. No permission is required and there are no barriers to access. (UKBTC Automated Trade Marketplace)
There is an essential difference between DEX decentralization and CEX centralized exchange. The advantages of DEX are: (UKBTC Automated Trade Marketplace)
1. DEXs are usually used to buy tokens, not coins. These tokens can only be purchased in the blockchain’s native currency, such as Ethereum, and if traders want to buy and sell lesser-known tokens, DEXs are the way to go.
2. DEX does not require identification. Users can operate completely anonymously.
3. DEX usually charge much lower fees.
4. Since the DEX is not run by a company, there is no customer support. Make sure you are familiar with how to use DEX before you start trading.
5. The user controls the funds, not the central agency of the decentralized exchange. Due to the peer-to-peer network architecture, the control of the funds is always in the hands of the user. Private keys are controlled by the user and are not shared with exchanges.
6. Security: Decentralized exchanges are more secure because user information is not stored on a central server. Even if hackers gain access to user information, not the entire network, the attack is partial.
DEX decentralized exchanges are mainly divided into three types, which all allow users to trade directly with each other through their smart contracts. (UKBTC Automated Trade Marketplace)
1: Automated Market Maker (AMM): is the key technology of the DEX decentralized exchange, liquidity providers earn passive income through transaction fees, which are based on their contribution to the asset pool as a percentage. (UKBTC Automated Trade Marketplace)
2. Order Book DEX: A key feature of the order book model is that they allow users to submit two types of orders: market orders or limit orders.
3. DEX aggregator: The more complex the product types on the chain, the greater the user demand for the aggregator layer. About 20% of the monthly on-chain transaction volume is generated through the DEX aggregator, and there is a clear growth trend. (UKBTC Automated Trade Marketplace).
Organization: UKBTC Automated Trade Marketplace
Contact Person: Natalia Verova
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Country: United Kingdom
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No any coins journalist was involved in the writing and production of this article.