Random Blog on Crypto (Part 09) : Need of Decentralized Exchange

We are very familiar with blockchain technology and decentralized networks. Many of us also know about the exchange sites where we can easily trade our Fiat or any other digital currency. But exchange can be of digital form and will be decentralized. Users can trade their digital assets crypto or fiat between one another with the help of such kinds of exchanges where there will be no centralised authority to control their transaction.

Mainly the concept of decentralized exchange is coming into existence due to the security flaw nature of the centralised exchange which is faced by many of the traders in recent times. My previous couple of posts I have also discussed about the flows of centralised exchange which is generating some pace for developing such kind of centralised exchanges based on smart contracts. It's not only the pace but also the crying need of the era to have such a wonderful network where the buyers of the digital currency will have confidence to sell. Similarly, sellers will get confidence in their currency trade as well. Decentralized exchange (DEX) is a platform for trading cryptocurrencies that operates on a decentralized network typically on the blockchain. This type of exchange allows users to trade digital assets directly with each other without the need for a centralized intermediary.

These exchanges operate on a decentralized network where users have full control over their digital assets and private keys. It reduces the risk of theft or loss due to hacks or security breaches. As there is no central point of control, there is less opportunity for malicious actors to manipulate the market or engage in fraudulent activities.

Privacy is strictly maintained here in case of centralized exchanges. Decentralized exchanges typically do not collect or store personal data. This makes DEXs an attractive option for users who value privacy and are concerned about their data being misused or hacked. Due to recording data in blockchain networks it is much more likely transparent. But the users and developers should be technically sound in this field as it is very recent and complicated technology for any newbies.

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