How to build a decentralized cryptocurrency exchange (DEX) platform-Crypto App Factory
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Decentralized Cryptocurrency Exchange
A decentralized exchange (DEX) is a partially-automated cryptocurrency exchange platform where no intermediate third-party can hold customers’ personal information, account balances, portfolio allocations, and fund positions at any stage. In other words, there are no centrally-controlled servers, thus eliminating a single point of failure. A decentralized exchange is popular for trading any cryptocurrencies without the restrictions of centralized platforms. They allow users to buy and sell cryptocurrencies from each other without the involvement of a middleman.
Every decentralized cryptocurrency exchanges require users to register for an account before start trading. however once they have done creating an account they can list cryptocurrencies to sell, or buy someone else's, almost immediately.
The most common Decentralized exchange typically rely on a blockchain platform. This increasing utility of blockchain is moving the world to a trustless economy, thus removing the need for a middle man to exchange goods and services. The blockchain community understands the risks involved in trading cryptocurrencies and creates a better trading experience with Decentralized Exchanges. The main idea here is that traders can remain the custody of their funds.
Decentralized Exchange Script
Decentralized exchange platforms emerged on the scene after centralized exchanges failed to address some pressing issues. Decentralized exchanges brought with it truly peer-to-peer transactions, eliminating any need of third party involvement and institutionalized (centralized) control. This platform enables you to send money online seamlessly without any centralized control over the transaction. Closely regulated by Smart contract triggers, DEX also makes it possible to establish trade between two different cryptocurrencies.
Our team of experts have been providing exclusive DEX solutions to help enterprises and startups trade more efficiently and securely. Our impeccable knowledge on the subject makes us fit to build highly scalable, reliable and secure decentralized exchange platforms.
How does Decentralized Exchange work?
A P2P decentralized exchange works completely dependent on the software that powers it. All transactions operating in a decentralized platform are verified by cryptography, thus removing the need for an intermediate third party.
Generally, a decentralized exchange is a platform where both buyers and sellers can conduct transactions. For example, If someone is looking to buy/ sell anything on the exchange would deposit their money onto the exchange and can use it in the future to trade crypto coins from sellers. This makes way for the direct customer-merchant relationship without the need for a government authority or centralized. The lack of need for an intermediary also concluded with significantly fewer fees. Thus DEX is increasing in popularity with more and more people, exploring this new and interesting concept.
Advantages of Decentralized Exchange:
No single point of failure: Centralized exchanges serve as legal custodians responsible for each trade, all of which are maintained on traditional servers. Thus, centralized exchanges become a hugely attractive target for hackers. On the other hand, Decentralized exchanges, run on a distributed ledger and therefore do not face the risks involved in a centralized exchange process. keep their user's funds and personal data secure.
No single point of control: In a decentralized exchange, there is no way for anyone to “take control” of the trading system/ funds, making it much more resistant to censorship, government interference, and power games.
Secure: Security is another big advantage of DEX is that are distributed globally, thereby reduces the risks of server downtime as well as hacking.
Low Fees: Trading fees on Decentralized exchange platform are significantly low while compared to centralized exchanges. whereas some DEXs are even free. The users can only bear the cost of sending transactions over the blockchain.
Government-Resistant: As DEXs are open source codes operating on a decentralized network, making it extremely hard for any government to control it. since no governments can shutdown the regulations towards decentralized exchanges.
Trustlessness: The biggest advantage of a DEX is its ‘trustless’ nature, over-centralized exchange. In a centralized system, trust is required for an entire system. As for DEXs, no need to trust the company behind the decentralized since all transactions occur in a transparent and automated system.
Privacy: The privacy features provided in decentralized exchanges are increasingly rare to find in a centralized exchange. Unlike centralized exchanges requires KYC procedures, whereas trading on DEXs does not require to provide personal information.
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