CRYPTO ACADEMY: HOMEWORK TASK FOR @yousafharoonkhan by @sammylinks
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Hello everyone,
I'm very happy to participate in this week's lecture from our seasoned crypto-professor @yousafharoonkhan where he focused on the continued study on the centralized and decentralized forms and his words were clear and easy to understand.
There's a homework task given to us by the lecturer. The task is based on:
- The definitions of decentralized and centralized exchange.
- The difference between decentralized and centralized exchange.
- Explain at least two best centralized exchange platforms and show my verified profile and trade done.
- Install metamask and show the step by step procedures.
- How to use uniswap and show the step by step processes.
Decentralized is a modern innovation that have changed the financial transaction positively. It's not limited to crypto-currencies trading but can be applies to the traditional banking sector.
As the name implies, decentralized simply means that there's no central authority or central vault or ledger where all the transaction details and assets are kept in trust for the clients. There's complete autonomy of the clients and their assets are in their disposal. All the financial decisions are done by the clients and there's no rules or regulations that control individual's wallets or vault where their assets are kept. They are risk bearers and control their resources individually. It's exchange is mostly done based on P2P. P2P stand for peer to peer exchange and there's no middlemen or charges for decentralized exchanges.
This type of exchange or transaction is similar to the traditional banking trading where there's a central bodies or middlemen that must be consulted before any transaction can be done successfully on their platforms.
The middlemen makes rules and regulations that govern all the transaction and every clients must be duly verified before allowing to trade here. There are "set" fees known with several names in the central body depends on for their services.
There's a central vault and ledger where all the transaction are recorded. The central vault is where all the assets from their clients are kept. There's a financial records for those transaction too.
All the financial policies, decisions and approaches are taken by those middlemen and their decisions are at the mercy of the clients who can't decide on how best to use their resources.
Both of these exchanges are very unique but have several difference between them. They Includes:
SECURITY
The assets of the clients are safer in their hands because decentralized allowed them to exercise that right . Since there's no central vault where middlemen that secure those resources on that. So it's very hard to be hacked unlike in centralized exchange Which is regularly hacked because of it's central vault.
Transaction fees
Since the middlemen in centralized exchange charge some percentage as transaction fees while in decentralized exchanges, there's no Know fees for their services.
Personal identification and profiling
Every clients are profiled and verified before allowing to use the services in the centralized exchange platforms in the form of KYC while in decentralized exchanges platform, the verification process is less but secured.
Popularity and Usability
Centralized exchange platforms are very popular and the platform have a lot of people trading on it and using it's services but decentralized exchanges platform are not as popular as centralized platform but it is getting more users everyday.
Liquidity and Volatility
Being more popular and earliest easy to use, centralized exchange platforms has more coins to traded on and handle huge more trading units than the decentralized exchanges platforms.
This is one of the best centralized exchange platforms in the world. It have a huge trading units and have several crypto currencies being traded on the platform.
This most friendly exchange platforms was founded in the year 2013 but I started trading with them last year. It's very easy to use and guarantees user's safety and security of their deposit. Almost all of it's users stores their assets offline in cold wallets making its very hard to be hacked.
The major uniqueness of Poloniex is it's integration with steemit making the trading with STEEM with other crypto currencies very lucrative and stress-free.
Binance is the world most popular centralized exchange platforms. Binance is very friendly and have very huge clients bases than any other platforms. Even new crypto currencies are firstly listed here and handle very huge trading units every day.
Binance have many useful features and the introduction of binance P2P makes trading with binance a bit decentralized and very attractive in countries where governmental rules on crypto currencies are not favorable like India and Nigeria etc.
The security of the resources and assets of the clients of BINANCE is very strong and not overly exposed to hackers. The dark activities of hackers are stunned and checkmated.
the installation of metamask and how to use it.
Metamask is very wonderful decentralized wallets where users can holding on to their crypto currencies without fear of hacking and safety.
To install metamask app, I click on the my Google play store.
On the address bar, I searched for metamask app.
I clicked on the install button for full installation and verification.
After the installation, I launch the app for creation of wallet.
After the welcome page, the dialogue pages opened with several address bars for passwords and confirmation of that password used. I couldn't get the picture of that pages and the pages for the seeds words for safety reasons. But after it's validation. A new account is created.
How to use Uniswap to buy, withdraw and swap crypto currencies.
Uniswap depends on other centralized exchange platforms like binance and poloniex to work effectively but can also connect efficiently on metamask for it's services.
This is on my metamask app. I will click on swap button.
After the welcome page, the dialogue pages for swapping will launched like the one above. I wi select the tokens to swap. I clicked on swap button and immediately the tokens are swapped with the equivalent value on the desired token.
Conclusion
Modern transaction is very innovative and have changed the trading process for good and safety.
Thanks to @yousafharoonkhan for this class and to @steemcurator02, @focusnow, @steemalive and @steemitblog for the encouragement and support.
Great write you've got
Thanks so much for reading
First respected student Thank you very much for taking participate in Steemit Crypto Academy Season 2, Week 3 course class..
I have read your assignment very satisfactorily
Grade : 6
Thank you for your verification.