Let's know a little more about decentralized exchanges
First of all a big greeting to all friends of steemit and especially to the members of this prestigious community as PH, today I want to share with you all this publication related to some considerations about the types of decentralized Exchange, which are so important to be able to make the exchange of our assets.
It is noteworthy that the blockchain world has had an exponential growth and cryptocurrencies are becoming more and more consolidated, as well as the DeFIs, and at the same time, interesting proposals of decentralized exchanges (DEX) have emerged as fast and secure exchange alternatives.
The privacy of our capital is paramount nowadays and there is no doubt that decentralized
exchanges (DEX) offer us the privacy to invest our cryptocurrencies in a very secure way.
author: @dgalan, through the Power Point 2010 tool, and using the public domain image pixabay
Decentralized exchanges? (DEX):
We can highlight that decentralized exchanges, known as DEX, are an improved and developed version of the old and classic centralized exchanges. One of the fundamental features of the DEX is the internal functionality that is executed directly on the blockchain, through the so-called Smart Contracts (smart contracts) these contracts have the ability to perform specific actions according to the parameters that are indicated, being very transparent and secure.
It should be noted that the main feature of decentralized exchanges is undoubtedly their security and ease of use, in addition, operations are performed quickly since they are not within the blockchain infrastructure.
With the emergence and evolution of the first DEX a number of versions of decentralized exchanges have emerged with different alternatives:
-One of these versions is the one that has elements of centralized exchanges and decentralized exchanges and cryptographic assets must necessarily be sent to be temporarily deposited on the servers of the exchanges and after a certain time to be able to withdraw them.
-Another version is the introduction of smart contracts that are responsible for making the exchanges losing for some time the possession of our assets.
- And the last and most used version of decentralized exchanges is undoubtedly the one that improves all the previous ones since it continues with the smart contracts, but under no criteria the possession of the assets is lost in the whole process. Therefore, we do not trust any third party, everything is more discreet and we have total control of all operations.
Some of the main characteristics of DEX:
-It is anonymous since it does not have any type of records where you have to give your name at the time of operating more than connecting to your wallet compatible with the platform.
-Security due to the use of smart contracts, since they can be blocked quickly if you are alerted of any operation out of the ordinary.
-The commissions are very low.
-There are no server downtime problems because they are distributed through nodes, thus improving the service.
-There are no intermediaries, improving the speed of operations.
-There is no custody, the user is in possession of his assets all the time.
Some disadvantages of Decentralized Exchanges:
-You can only use cryptocurrencies and does not allow fiat money.
-It has no customer services, as there is no responsible staff on the other side other than the system.
-Some DEX are built on the blockchain, so all tokens must be exchanged right there..
author: @dgalan, through the Power Point 2010 tool, and using the public domain image masterethereum.com/uniswap, app.1inch.io/#/1/swap/ETH/DAI, pancakeswap, cryptoshitcompra.com
I also want to share with all of you some of the main decentralized exchanges we can get in the market as they are:
-Uniswap:Elde Ethereum network offers its users the possibility of being able to make their operations of any ERC20 asset very quickly and almost instantly.
-1inch:We can say that it is a very interesting exchanges, since one of its functions is to get offers (search engine), in order to offer users the best option when it comes to operations. In addition to the exchange of cryptocurrencies, this exchange also offers to provide liquidity to its system and Yield Farming.
-PancakeSwap:This allows multiple exchanges of tokens, without having to lose custody of them for any reason. Its main function is based on several Smart Contracts and has very low commissions..
At the same time this exchange also offers some options such as yield farming, liquidity aggregation, token exchange and yield farming.
-dYdX: This decentralized exchange is used with leverage and operates without custody, and has a layer 2 version of Ethereum..
It also allows its users to achieve short and long positions to leverage up to 10 times their investment.
Your post is manually rewarded by the
World of Xpilar Community Curation Trail
STEEM AUTO OPERATED AND MAINTAINED BY XPILAR TEAM
https://steemit.com/~witnesses vote xpilar.witness
Thank you for your support
There are many other advantages to DEXs - 24x7 operations, no depositing of money, low fees, instant settlement as opposed to 2 to 3 days on centralized exchanges (securities, not crypto), and no KYC requirements.
Nice article.
You are very right with your opinion, these are advantages that attract more investors.
Thank you very much for your comments
Hi @dgalan with DEX you can get a much safer and above all individualized way of carrying out cryptocurrency transactions. Decentralization has the potential to remove the potential drawbacks of the cryptocurrency economy and thereby widen the circle of users and increase the number of applications. Without a doubt, it is an innovative model.
Greetings @aplausos _there is no doubt that the DEX are an alternative to generate resources without intermediaries unlike traditional finance.