IDEX - Distributed Exchange Made of Smart Contracts (Review)
Decentralization has been the talk of the technology world ever since the advent of cryptocurrency and blockchain technology. Blockchain technology being the technology behind cryptocurrency prevents control/centralization by any central authority such as government, banks and other financial institutions. However, decentralization which is the most pivotal and most attractive features of cryptocurrency has not fully materialized with regards to cryptocurrency exchanges. More than 75% of all crypto trades are carried out on centralized exchanges, which poses threat to traders as we have seen multiple centralized exchange hacks, exit scam, and locking of the user's account. All this gave birth to the emergence of decentralized exchanges which have its own flaws, such as slow trade, low liquidity, and limited functionality.
Today, I present to you IDEX Exchange which solves the problems experienced on both centralized and decentralized exchanges. At the time of writing, IDEX exchange is ranked number 9 on the list of top DApps of 2019. All about IDEX exchange and how to trade on IDEX exchange will be discussed in this DApp review.
Overview of IDEX
IDEX is a semi-decentralized Etherium based exchange platform built with the aim of combining the scalability of centralized exchanges with the security of decentralized exchanges. By centralizing Etherium transactions dispatch and trade matching, IDEX has been able to allow continuous trading, placing of multiple orders and cancelation of orders without gas cost. This made IDEX stand out from other decentralized exchanges such as EtherDelta. IDEX is part of a decentralized banking and finance platform developed by Aurora Labs. Led by CEO Alex Wearn, Aurora aims to build a fully decentralized banking and investment platform.
Since cryptocurrency traders value both top notch security and scalability, the IDEX team has given traders the full confidence to trade on IDEX without sacrificing one for the other. To catch a glimpse about users activity, trading volume and developmental activity, check out IDEX stats on the State of the DApps.
Unique Features of IDEX
IDEX being a semi-decentralized exchange comprises of some unique features that let it stand out from the crowd. Some of these features are;
[source: IDEX whitepaper, page 3]
- Scalability: Unlike other totally decentralized exchanges, IDEX utilizes the Etherium smart contract alongside an off-chain infrastructure to provide users with real-time trading experience. While the smart contract handles on-chain settlement of users funds and trade authorization, the arbiter handles the queuing of all trades, dispatching of trades in sequence and ensuring that the smart contract synchronizes with the exchange balance. All this enables continuous trading on the platform without traders waiting for each transaction to be mined as seen on totally decentralized exchanges.
Security: All transactions on IDEX exchange are carried out on the blockchain with the aid of Etherium smart contract. The execution of trades, on-chain settlements can only be authorized with the user's private key. This simply means that users can keep their funds on IDEX exchange without the fear of it been compromised. Also, the direct integration of ledger nano S and software wallets makes IDEX be more secure because users don't have to expose their private keys.
Functionality: Unlike other totally decentralized exchanges, users can cancel orders without being charged for gas on IDEX. Moreso, users can fill many trades without waiting for each one of them to mine.
How to Start Using IDEX Exchange
In order to start trading on IDEX exchange, first, you need to visit IDEX official website by clicking on this link. On the homepage of the website, a pop-up will come on with the option to Explore the website or to Unlock Wallet.
[screenshot by me: @donefezy]
Click on the Unlock Wallet option, this will take you to another page with four options on how to access your already existing Etherium wallet.
[screenshot by me: @donefezy]
Keystore File: You can access your already created wallet by uploading the keystore file given to you on wallet creation. After uploading the file, input the password of the wallet to unlock it.
Private key: You can input your already existing Etherium wallet private keys here.
Software Wallet: You can integrate your metamask, trust wallet, Toshi or Blue wallet using this option.
Ledger Nano S: You can integrate and trade directly in and out from your ledger nano S wallet using this option.
After unlocking/integrating your already existing wallet, you will need to deposit funds into the IDEX exchange smart contract in order to trade. The deposit button is located at the top of the page after click checking balances.
[screenshot by me: @donefezy]
Once you have successfully deposited Etherium into IDEX smart contract, you can now start trading. The BUY/SELL order tabs can be easily located as seen below.
You can also check the order book to see the BIDS/ASK orders as in the images below, in order to make better trade decisions.
What I Like About IDEX
I like exchanges that are secured and scalable. IDEX got that already which is why I like IDEX. Aside that, I like how easy it is to understand and make use of the IDEX exchange platform. You don't have to be a tech guru before you can trade on it. Another pivotal reason why I like IDEX is that they list ICOs with future prospects right before they are listed on centralized exchanges.
IDEX exchange is currently the most advanced decentralized exchange. Leveraging on the scalability and security of centralized and decentralized exchange respectively, is a game changer in the crypto space. However, in order for IDEX to compete with top class centralized exchanges, they need to be more scalable so as to handle extremely large transactions as seen on centralized exchanges. I like almost everything about IDEX exchange and for this reason, I am giving IDEX 4.8 out of 5 star rating.