Waves Decentralized Exchange and safe trading of blockchain assets.

We’re  launching Waves DEX now, a decentralized solution for digital assets  trading.

Let’s reiterate why we think that it’s an important development  that can actually change things.

Decentralized  blockchain tokens are being traded on very centralized exchanges.  Essentially it’s a contradiction in terms, that manifests itself in  these exchanges being hacked all the time. You just can’t trust a  centralized service with your decentralized tokens. Bitcoin and other  crypto is a perfect thing to steal, transactions are non-reversible,  transfers are hard to trace. Centralized cryptocurrency exchanges are  not sustainable in the long run, since the cost of an successful attack  can ruin any successful exchange.

On  the other hand, until we have very high blockchain transactions  throughput, we can’t have a comfortable solution for a completely  decentralized trading. Putting all trading data on the blockchain is  doable, but you have to deal with blockchain latency and tons of data which you have to synchronize over all the nodes.

There’s  a solution in between, and this is the path we have taken — you can do  the blockchain settlement but order matching is done in a centralized  manner. What does it mean in layman’s terms — there’s a server which  matches incoming orders, but has no access to your funds. There’s no  chance that you could lose money in this setup, since you have full  control over your funds at all times. When the server finds a matching  pair it initiates the transfer on the blockchain which moves the funds.  The correctness of the matching is verified in a decentralized way, and  no funds can be transferred if the orders are not matched properly.

This  is a new approach that can be called “Matching as a service”. You can  mount your own Waves matcher and earn commissions. Probably we don’t  need to try to decentralize everything at this stage of blockchain  protocols development, focusing only on areas where blockchain really  improves things considerably. When you need high execution speed  centralized solutions work better. Putting the trustless blockchain  technology on top you get the best of the two worlds — speed of  centralized services combined with blockchain security.

Check Waves DEX out in our lite wallet!

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