DEX (Decentralized Exchange)
A Decentralized Exchange is a platform where people can trade cryptocurrencies without the need for a central authority to regulate the trades.
In order to create a DEX, you must first have blockchain technology integrated with your trade system. This system ensures that all trades are recorded on an immutable ledger and that no single party has control over the coins being traded. DLT also eliminates costly transaction fees and guarantees anonymity for traders, which is ideal for trading cryptocurrency.
DEXs allow users to store their cryptocurrency on their own wallet without the risk of security breaches or privacy leaks. However, DEX tokens are less useful for trading between cryptocurrencies than centralized platforms because of the additional personal information required during account creation and verification processes.
It also requires a large network of trusted nodes in order to function properly. Fortunately, decentralized exchanges have been around for some time now and have shown that they have a promising future ahead of them.
Benefits of a Decentralized Exchange:
· Trades are anonymous and secure
· Fees are much lower than on centralized exchanges
· Greater control over your money, since you hold your own private keys
· Security is not dependent on a third party. A centralized exchange can be hacked and customer funds stolen. With DLT, hackers would need to hack every single computer on the network.
· The Oasis DEX does not take possession of your assets and never holds your keys for you. You are always in ownership of the assets.
· No single point of failure. If a centralized exchange is hacked, or goes bankrupt, or simply disappears, there is no recourse for users to recover their funds. In contrast, with a decentralized exchange there is never a single point of failure. If something happens to one node on the network, the entire network continues on unharmed.
· Ability for traders to retain control of their private keys.
· The Oasis DEX has an escrow function, so you can trade with peace of mind
Advantages Of Decentralized Exchanges
There are several benefits of using decentralized exchanges over traditional centralized ones such as exchanges which are owned by a company or individual.
Faster & Cheaper
Because decentralized exchanges do not rely on third parties to hold the customer's funds, transactions are faster and cheaper. If a centralized exchange goes offline or becomes slow, you may have to wait for hours or even days to receive your funds back. Transaction fees are also lower as there is no middleman. In a centralized exchange, you pay fees to the company's personnel as well as any intermediaries and third parties involved in carrying out transactions.
Security Is Guaranteed
Decentralized exchanges are usually more secure than centralized ones as the traders' funds are kept by the service provider and not in a third party's custody.
Transparency Is Increased
Traders can see exactly how their funds are distributed to other traders on the network. You cannot do this with a centralized exchange. The transparency is also greater as there is no need for companies such as brokers or banks that might charge you steep fees for sending your funds to another trader.
Top 5 DEX( Decentralized Exchange)
| Exchange | Token | MarketCap |
|---|---|---|
| Unisawp | UNI | $6,773,374,306 |
| PancakeSwap | CAKE | $2,018,734,386 |
| SushiSwap | SUSHI | $559,951,929 |
| Bancor | BNT | $569,525,371 |
| dYdX | dYdX | $401,434,444 |