Short guide on Decentralized Exchange
February 1, 2019
What is the Decentralized Exchange? Why the decentralized exchanges are now in demand? And short analysis of decentralized exchange? These are the some question that everyone wants to know exact answer of it. So here in this blog, we will answer of these questions.
What is decentralized Exchange?
Unlike centralized exchange, decentralized exchange does not depend on any third party to control the fund of traders. Here trade occurs directly between users. Decentralized exchange allows users to remain owner of their token and trade directly and anonymously.
Why the decentralized exchanges are now in demand?
- It is very safe, and fund in the decentralized exchange remains safe from any malicious attack.
- User have control over their token, they can do the trading without depending on any third party.
- Decentralized exchange offers privacy, here users remain anonymous and they don’t need to disclose their private details with anyone.
A short analysis of Decentralized exchange:
In this section, we will analyze decentralized exchanges in term of speed, security, liquidity, and user experience.
In matter of speed, Centralized exchange proves better than decentralized exchange. However, research is going to improve the speed of decentralized exchanges. And in future we will see a positive result in this direction.
In matter of security, decentralized exchanges are far better than centralized exchanges. Unlike centralized exchanges, the funds in the decentralized remain safe and very difficult to hack.
Current decentralized exchanges do not have enough liquidity to compete with centralized exchanges and there are not enough market makers that could pull in a significant amount of takers.
The functionality of decentralized exchanges is more complicated than centralized exchanges. In centralized exchange you just need to press trade and things happens in background. While in a traditional decentralized exchange there are multiple transactions involved to exchange one cryptocurrency to another.
The concept of Decentralized exchange is becoming popular and research is going on make it better in matter of more trade option, easy to use, and more affordable.
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