Cryptocurrency has become a popular trend in recent days. With plenty of countries making Cryptoexchange be a legal, centralization and decentralization are the latest services launched by the crypto exchange platforms.
Binance Coin is paired up with multiple coins in multiple exchange platforms. BNB is now paired up and traded up with 68 coins and 7 of them just within a single month.
So what is a centralized exchange initially?
- Centralized Exchanges are easy to use, easy to access and provides advanced trading functionalities such as Margin Trading!
- Centralized Exchange represents a manual transaction platform where a third party is required to trade the cryptocurrency!
- Level of privacy in centralized exchange is limited since they can store the trader’s details.
- Infrastructure risk prevails since it highly depends on the operators.
- In the view of the fact that security lessens in this platform, it can be easily hacked by the intruders across the globe.
- Moreover, Trade Volume and Liquidity is also high here!
With these drawbacks in a centralized exchange platform, crypto exchange platforms have started to move towards decentralized platforms!
What is a Decentralized exchange?
Now you would probably know the reason why people started moving towards the decentralized exchange.
- Decentralised Exchange is a peer to peer network which doesn’t rely on the third party service to hold the customer’s fund.
- This is actually done by creating proxy tokens, or assets or either through a decentralized multi-signature escrow system, among other solutions.
- This system contrasts with the centralized model in which users can deposit their funds and exchange issues.
- To make sure whether trading takes place securely without any risks, decentralised exchange offers escrow services by which both the parties will receive their funds after the end of their deal.
Benefits of Decentralised Exchange:
No Single point of failure:
- Even though the nodes are at failure the network will still be running.
No Single point of control:
- A truly decentralized system where none of them can ‘take over the system’ which makes it more resistant to censorship and power games.
No Single point of regulation:
- Being decentralized represents that applications don’t fit into the nation-state paradigm.
As a best decentralized exchange doesn’t involve any third-party, their transaction processing speed is at a higher pace compared to their counterparts. Additionally, users are not required to pay a fee to authenticate or authorize a transaction, which makes these types of exchange platforms cheaper for crypto traders.
Privacy is the major attribute here in the exchange industry. In decentralized exchange script no need any KYC information to create your own account. So there is no possibility to track you and access your exchange information.
Not restricted by law:
Dex exchange is not restricted by physical location. Moreover, Decentralized exchange software makes much harder to regulate or shut down!
Therefore this can be useful news for those countries where cryptocurrency exchange is unveiled as illegal.
Lower rate of failures:
Dex exchange is done without any controller. So there is no befall with bugs and errors.
Success factor of Testnet- Binance Decentralized Exchange Software (DEX)
Binance, the world’s top decentralized exchanges have already launched Testnet in their own blockchain!
As the price of Bitcoin and Cryptocurrencies across the board has already dropped rapidly in the past year, Binance focused on building new products and services.
The primary reason for launching a steller decentralised exchange offer traders a far greater level of security, privacy, and trust.
This dex exchange platforms are indeed less intuitive and user-friendly when compared to other centralized platforms.
Moreover, Binance is completely aware of the existing issues with Decentralized Exchange Software (DEX) since they have millions of customers and processes billions of transactions every single day!
Binance’s CEO Zhao stated that “Binance Decentralized Exchange Software (DEX) will work similar to Bitcoin were most of the transactions will be made transparent, and there won’t be any hidden transactions or private transactions”!
“Further, there will be a listing fee of about $100,000 for tokens listed on Binance DEX”, he stated.
All it appears that Binance Coin will be simple and clean blockchain with high performance which is going to be true!
Dex exchange which you should check out:
There are a handful number of list of decentralized exchanges available readily in the market. From the user point of view, here are a few platforms you need to check out:
- Bancor Protocol:
This protocol tries to reduce the liquidity problem with their unique Token Relay Technology. It also tries to simplify the entire process.
- Ether Delta:
This is yet another DEX platform which utilizes MetaMask to log in and do trading. This platform enables you to buy goods/services and track your order and transaction anytime.
This is a new entrant to the decentralised exchange which runs on the top of the Bitshare network and provides access to all the popular altcoin pairs.
With great changes happening in Crypto Exchange Environment, Crypto Enthusiasts and traders have already started to decentralized exchange software with its foredeals!
If you are actually looking for a best decentralised exchange to be developed, you can hire Coinsclone, the top-quality dex exchange development company to provide high-end solutions!
With 40+ expert developers onboard, we make sure our results are up to client expectations and views!
We provide multiple other services such as:
- Trade Engine.
- User Wallet.
- KYC system.
- Escrow System.
- Admin Panel.