PRESENTING THE DEEX EXCHANGE PLATFORM
WHAT DO YOU UNDERSTAND A CRYPTO EXCHANGE TO BE? Easily a platform where crypto assest are traded.
For a while now the use of blockchain technology and digital assets that leverages on blockchain technology has been on the increase. In the year 2017, blockchain based assets saw a huge rise in value, in some cases over 3000% additions , due to the strong force at which the market was getting know and adopted. People began to see reasons to buy and sell cryptocurrencies, reasons such as payments for certain goods or service, to transfer funds to family and friends without the rigorous stress we face in current fiat banking institutions, to trade cryptocurrencies and earn profit while at it. As cryptocurrency was at the adoption infancy stages, a lot of projects and crypto exchanges sprung out with different solutions in real life they can offer with blockchain technology. The market grew like wild fire due to its freshness and capitalized almost $700Billion. But as time went by, it was clear than most of this projects and exchanges did not and may never meet the task they set out to, most projects a very shabby without proper real use case. This is the same issue that was faced by exchanges, as so many exchanges were created to meet the high demands of tokens and token holders and list these tokens on their exchanges. But as time went by, it was very evident that most of this token were useless(just profit oriented) and so were the exchanges that listed these tokens. After a while the market capitalization began to sink, as the faith users had in the crypto space were getting abused with this pump and dump projects and exchanges.
Though the year 2018 came with as reasonable decline in market capitalization, the level of adoption of blockchain technology has not reduced in the slightest bit, on the other hand more companies and firms are beginning to see the benefits of transacting with blockchain technology and its assets instead of regular fiat banking systems. As more investors and firms come into blockchain , the need for reputable and efficient exchanges cannot be over emphasized as this exchanges are the media through which trades can occur for this huge investors and firms.
When it comes to cryptoexchnages, there are basically two main types of crypto exchanges in the crypto verse which are mainly, the centralized and decentralized crypto exchanges . You may have no idea what this means so permit me to break it down for you
A centralized exchange is one owned by individuals, and this individuals are totally in charge of the affiars of the exchange. The make the core decisions, and all users store there assets on the wallet provided by the crypto exchange.
A decentralized exchange is the opposite of a centralized exchange, on a decentralized exchange, no one is in absolute control of the affairs of the exchange, its dealings are completely decentralized and transparent, and users assets can be stored on their own personal wallet
DISADVANTAGES OF THE DEX EXCHANGE
The decentralized exchange despite having security as one of its main advantages over centralized exchanges have been seen to have a disadvantage which has left users to stick to centralized exchanges. The major disadvantage faced by decentralized exchanges over the years is the issue of liquidity, and it is a major issue because no professional trader would make profit from an exchange that possesses poor liquidity rates. Poor liquidity means that it will take hours before a trade order is filled, because the amount of buyers and sellers on the exchange is very low.
DISADVANTAGES OF THE CENTRALIZED EXCHANGES
Though good centralized exchanges can boast of liquidity, but this kinds of exchanges do not exist without its flaws
• When it comes to security, the centralized exchanges are way below par when compared to decentralized exchanges . This is because the exchange is centralized, all assets can be found at a centralized point, which means when the exchange gets hacked, the criminal or hacker will easily do away with assets of several individuals on the CEX exchange. This case is the direct opposite on the DEX exchanges, as assets of users are decentralized, which means a hacker can only get access to the wallet of one user if hacking is successful and that one alone. This is better than when the whole users are threatened by just one hacker.
• Most centralized exchanges are solely profit oriented, and as a result take and make decisions that will lead to making more profit at the expense of their users
Up above, I talked about the major issues faced by decentralized exchanges, which is liquidity. But what is I tell you that liquidity is a thing of the past with the deex exchange platform?
WHAT IS DEEX EXCHANGE:- The deex exchange as its name implies is a decentralized exchange that works in the light of bitshare 2.0 functionality. The deex exchange is one that exists to bring the advantages of decentralized exchanges to the light, after remedying the issue of liquidity on other dex exchanges. The deex exchange has several benefits as why it should be used instead of a cex exchange, and this benefits and functions will be properly outlined in my next article of the deex exchange platform, do stay tuned. Thank you
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