We people in the market love things without an intruder in between. One such technology which I’m stressing here is decentralized exchange. This is usually an exchange market which does not depend on a middleman service to hold user’s funds!
To make it clear, let’s go deep into the topic!
Decentralised Exchanges are totally ruling the world with its high-end features!! Moreover, they are far better than Centralized Exchanges as accepted by the experts!
We shall get into the discussion to know more!
What is a Decentralized Cryptocurrency Exchange?
This is a computer algorithm serving the exchange of digital assets between the respective parties without the intervention of third-party. However, Dex exchange is complex since they link several elements such as site, trading terminal, wallets, etc.
Here are a few features associated with decentralized exchange software:
- The potential to instantly share digital assets.
- No need to transfer the funds to the deposit of exchange.
- Cryptocurrency Trading can happen in the absence of admin.
- There is no such thing called transferring the secret key to the exchange administrator or other service providers.
How does Decentralised Exchange work?
Most of the experts argue that Decentralized Exchange Script can be a future for businesses.
These are the process through which Decentralised Exchanges actually work:
- Authentication Process
The website generates a one-time key while entering which will be valid for a few days. Then the key becomes inactive. And thus, you should generate the key again.
Okay after logging in, the user can make the exchange. Some sites may require to Know your Customer procedure if the amount of user transactions exceeds a certain limit. It is not mandatory to register.
- Exchange process
In general, exchanges use atomic swap process to exchange one cryptocurrency to others. Transactions are carried out completely with no issues existing. One such thing is, it doesn’t require a cryptocurrency wallet to transfer the required amount to the exchange deposit.
In a centralized exchange, a third-party or middleman will be involving between the transactions. But on the flip side, decentralized exchange software doesn’t involve any such intermediator.
With such an exchange, a cryptocurrency exchange act as a platform where the parties meet, mutually agree on terms and conditions and conduct the transaction. This happens with the help of trading orders in which users indicate the trading pairs. Yes, then the system automatically compares these data and other orders. Once conformity is being done, transactions can start.
In the case, if the exchange on the selected trading pair cannot be carried out by atomic swaps, the exchange may conduct the transactions through bilateral depositing. Wondering how? This is done through Smart Contract that takes the assets both parties and then exchanges.
How to find the premium solution provider for DEX Exchange?
With all these possible strategies and process carried out in Binance decentralized exchange, hiring the right company can be a perfect solution. There are a plethora of development companies available in the market to get your work done.
Why hiring a cryptocurrency exchange development company can be beneficial?
- You can have a unique and best-decentralized exchange developed regardless of any complexity involved.
- There is no need to spend your time to hunt for employees who should have the desired expertise and handling the process.
- Quality Assurance can be acquired in hiring the right people.
- Moreover, it is cheaper than internal development.
However, you need to know the downsides involved in hiring the company for developing the product!
Here are a few which you may encounter:
- You cannot have complete control of the development process. For instance, if you want to make changes in any stage, this couldn’t be possible here!
- More expensive than using white-label solutions.
- You need to trust the third-party developer here.
What features will I get on recruiting company?
Though people argue about purchasing and installing a Decentralized Cryptocurrency Exchange Software Script, selecting the right software and buying it can be a paved way for profits!!
The organization and exchange developer would be responsible for everything right from installation, configuration, and testing. The only thing to be done is to buy an existing website and rebrand it simply!!
There are huge foredeals involved:
- You don’t need to waste much of your time.
- You can buy an existing domain and business without creating it from scratch!
You would have probably heard of a strategy where a company would develop a decentralized application and another implements it in a cryptocurrency exchange under its own brand.
This approach can save your money and time since it has already been created and is implemented. At the same time, in regards to the purchase of a finished product and as a white label provider, you will get a solution that will stand out from the crowd.
This strategy can:
- Help you with reasonable price.
- Kick-Start depending on the supplier.
Just consider the same case which involves the development within the company. In such case you will come across:
Creating software for DEX Exchange is also possible within the organization. To perform this, you need to find talented specialists and organize the development process properly. The thing you should look for is the quality assurance here!!
So what to look while developing?
Regardless of organization or development within the company, these are the things you need to look for!
Trade Engine is the basis for any cryptocurrency exchange. So What is Trade Engine? A Trade Engine collects all the information, elements and functions of the site into one mechanism which:
- Match orders to determine the counterparties.
- Initializing Smart Assets Swap Contracts.
- Make Residual Calculation.
In order to create a Trade Engine, you should be tech-savvy and a master in programming skills which is imperative. Added, you should have a sound knowledge of Blockchain and its related technologies to make your product unique.
Atomic Swaps are a kind of peer to peer exchange in which there are no third parties allowed between the assets!
Here are the advantages you will be rendered on adopting Atomic Swaps!
As Atomic Swaps uses Lightning Network, the transaction fees are relatively low!
Let’s consider an example, one dollar is enough for hundreds of bitcoin transactions happening in the transaction network.
Atomic Operations are initiated by direct participants in the transaction, and no one can intrude in between or cancel them.
The exchange operation is carried out instantly, and thus you don’t need to wait for confirmation of the transaction to close the contract.
If you look at top decentralized exchanges, the primary reason behind their success is the User Experience! The interface should always be User-Friendly, fault-tolerant and delightful!
The user should be pleased to make a trade with your best-decentralized exchange.
Make sure you follow these steps while developing an interface:
- Minimizing potential errors.
- Standardizing Icons and Buttons.
- Pleasant User Interface.
This can be an optional module since the Decentralized Exchange Software works directly on user wallets. But if you want to increase your audience level, it is suggested to think about exchanging virtual assets for fiat money and vice versa.
One thing is to be noted for list of decentralized exchanges, nothing but the geography and geolocation.
For Example, if you consider Asia it should include, Paypal, Checkout, Skrill, UnionPay, TenPay, etc.
The same gets applied to different countries along with its way of Payment!
Most of the Binance Decentralized Exchange Software (DEX) will consist of Admin Panel where one can manage the resource and configuration of exchanges.
Make sure your Admin Panel consists of these high-end features:
- Ability to restore the accounts in case of any problems by providing assistance.
- Managing the listing of trading pairs.
- Change of Trade fees.
Whatever the blockchain application it may be, all the investors in the crypto space are looking for high liquidity which cannot be denied. While developing Decentralized Cryptocurrency Exchange Software it is important not to force the users to transfer the money to site deposits which indeed creates liquidity pools!
Sometimes this can create problems with transaction speed! However, there are a couple of ways through which it can be solved!
- Dealing Centers
This is the module for creating an artificial course for selecting trading pairs.
- External Liquidity Pool
This is an API that converts the site to other exchanges.
What more is needed when you have a support team for assistance? Get the feedback from the customers whenever possible and assist them with everything.
Respond to their clients and make sure you don’t repeat the same! A well-established customer support mechanism will decrease the contrary reaction of users in the event of any difficulties and will let you know what needs to be changed, renewed and added so that customers bring even more profit.
Wondering which company to hire?
If this is the question running across your mind, we, the Coinsclone are the superior provider of Decentralized Cryptocurrency Exchange Software Script in the crypto market!!
You would have come across the features we people offer such that your business is reaping profits!
If you are looking for any assistance or suggestions on the same, we are ready to help you!! Do contact us instantly to get your Exchange platform at your doorsteps!
Hope you liked the article!
Your comments and thoughts on the same are all the way welcome!!
Thank you! 🙂