Topic: What is Decentralized exchange? (Read 350 times)
A decentralized exchange is an exchange market that does not rely on a third party service to hold the customer's funds. Instead, trades occur directly between users (peer to peer) through an automated process. This system can be achieved by creating proxy tokens (crypto assets that represent a certain fiat or crypto currency) or assets (that can represent shares in a company for example) or through a decentralized multi-signature escrow system, among other solutions that are currently being developed.
in Bitcoin, there is no central / institutional entity that prints money, but the money is printed by the user. This is what causes Bitcoin to emerge as a decentralized system. as well as a decentralized market system, everything runs independently with certain points where users get full access in the form of a private key.
Decentralized exchange is when a currency is not restricted by any government or country, it is free for all, and is accessible to all. It is not under the control of a precise country. Can also be accepted for exchange into any currency.
But I think every inch of movement in the decentralized exchange comes with a fee right? Which one has the cheapest
No, that's not how it works, at least with the ones I've used.
Take Etherdelta, for example. Sending tokens to the smart contract = 2 ETH transactions (they place the order on the book, and return ETH to you if someone takes your token/ETH order).
There is a small commission, similar to centralized exchanges (fee is taken at time of execution). But it's cheaper on Etherdelta than centralized exchanges. I'm also looking into CryptoBridge.... apparently $BCO holders get 50% of trading fees that are paid to the DEX. That's pretty good incentive to provide liquidity on the order books.
But I think every inch of movement in the decentralized exchange comes with a fee right? Which one has the cheapest
No, that's not how it works, at least with the ones I've used.
Take Etherdelta, for example. Sending tokens to the smart contract = 2 ETH transactions (they place the order on the book, and return ETH to you if someone takes your token/ETH order).
There is a small commission, similar to centralized exchanges (fee is taken at time of execution). But it's cheaper on Etherdelta than centralized exchanges. I'm also looking into CryptoBridge.... apparently $BCO holders get 50% of trading fees that are paid to the DEX. That's pretty good incentive to provide liquidity on the order books.
But I think every inch of movement in the decentralized exchange comes with a fee right? Which one has the cheapest
Now, I undestand! Thank you
What is Decentralized exchange?
You should fix the poll --- neither "Bitcoin" nor "blockchain" are adequate definitions.
A DEX is an order-matching exchange system built on a blockchain via smart contracts. It enables you to place orders by essentially running scripts that interact with a blockchain.
One example is Etherdelta. The DEX is a smart contract, which in turn interacts with your key. Your private key can be used to send ERC20 tokens to the DEX and withdrawn back to your key. The contract is public, so it can be verified that Etherdelta does not have access to your keys. In this way it is "decentralized" --- it doesn't expose you to third party risk like other exchanges.
What is Decentralized exchange?
In my own opinion decentralize exhchange is a trading exchange,that is holding of changing cryptocurriencies from each other that without the permision of the government authorization.this exchange is independent from private sector to do what they want to implement in there business,thats why the prices is volatile and unpredictable.
Decentralized exchange is the exchange that is holding and changing currencies from one to another without having concern to legal authorities.
These exchanges doesn't depend on third party consents and maintain privacy of a customer very well.
One of the perfect example of decentralized cryptocurrency assets exchange is etherdelta.com.
Really good explaination. But do you know why this kind of exchange take too long time to place buy/sell order? Or that just etherdelta problem ? These exchanges doesn't depend on third party consents and maintain privacy of a customer very well.
One of the perfect example of decentralized cryptocurrency assets exchange is etherdelta.com.
When we say decentralized . Decentralized is the privacy it provides . Users are not required to disclosed their personal details to anyone except If the exchange method involves bank transfers . Furthermore the hosting of decentralized exchange use normal funds , anonymous and No hacks and server downtime .
Almost everything that concerns about cryptocurrencies is descentralized, because we are not passing through a bank, not even through a government in order to make profit from trades/sells/and any other kind of stuff.
This is the best part of all cryptos, we all are descentralized right now and we can use our money fully anonymous if we want, only that bitcoin is not an anonymous coin at all.
The most anonymous one is monero, of course, and maybe zcash, but i am not sure about this coin, because it is pretty new.
This is the best part of all cryptos, we all are descentralized right now and we can use our money fully anonymous if we want, only that bitcoin is not an anonymous coin at all.
The most anonymous one is monero, of course, and maybe zcash, but i am not sure about this coin, because it is pretty new.
Decentralized exchange is the exchange that is holding and changing currencies from one to another without having concern to legal authorities.
These exchanges doesn't depend on third party consents and maintain privacy of a customer very well.
One of the perfect example of decentralized cryptocurrency assets exchange is etherdelta.com.
These exchanges doesn't depend on third party consents and maintain privacy of a customer very well.
One of the perfect example of decentralized cryptocurrency assets exchange is etherdelta.com.
very well explained sir, Thank you for clearing out.
i just want to add
Bitcoin - is not a decentralized exchange but currency
Blockchain - is the technology behind all of the crypto currency
Decentralized exchange is the exchange that is holding and changing currencies from one to another without having concern to legal authorities.
These exchanges doesn't depend on third party consents and maintain privacy of a customer very well.
One of the perfect example of decentralized cryptocurrency assets exchange is etherdelta.com.
Thank you for your informative information... But I am really worried about its security. Is this safe?These exchanges doesn't depend on third party consents and maintain privacy of a customer very well.
One of the perfect example of decentralized cryptocurrency assets exchange is etherdelta.com.
etherdelta is not really decentralized and not centralized either. It's just operate on a client side approach. The term nearly-decentralized is way more accurate. Atomic swaps would be more decentralized in theory as etherdelta is reliant on hosting/servers to operate, plus you still need to deposit to a certain address the only difference from centralized one is you control your deposit address keys. Nonetheless, it's the most decentralized we can get as of the moment until atomic swaps are out.
ED is safe enough when you know what you're doing.
Decentralized exchange is the exchange that is holding and changing currencies from one to another without having concern to legal authorities.
These exchanges doesn't depend on third party consents and maintain privacy of a customer very well.
One of the perfect example of decentralized cryptocurrency assets exchange is etherdelta.com.
Thank you for your informative information... But I am really worried about its security. Is this safe? These exchanges doesn't depend on third party consents and maintain privacy of a customer very well.
One of the perfect example of decentralized cryptocurrency assets exchange is etherdelta.com.
I am a bit confused by the poll. A decentralised exchange differs from a regular exchange in that the exchange happens directly from peer to peer, without going through a third-party. Etherdelta is a prime example. Compared to regular exchanges where you lodge coins and then they hold them before exchanging them, a decentralised exchange you hold the coins and exchange them directly with the other party.
Decentralized exchange is the exchange that is holding and changing currencies from one to another without having concern to legal authorities.
These exchanges doesn't depend on third party consents and maintain privacy of a customer very well.
One of the perfect example of decentralized cryptocurrency assets exchange is etherdelta.com.
These exchanges doesn't depend on third party consents and maintain privacy of a customer very well.
One of the perfect example of decentralized cryptocurrency assets exchange is etherdelta.com.
very well explained sir, Thank you for clearing out.
i just want to add
Bitcoin - is not a decentralized exchange but currency
Blockchain - is the technology behind all of the crypto currency
Decentralized exchange is the exchange that is holding and changing currencies from one to another without having concern to legal authorities.
These exchanges doesn't depend on third party consents and maintain privacy of a customer very well.
One of the perfect example of decentralized cryptocurrency assets exchange is etherdelta.com.
These exchanges doesn't depend on third party consents and maintain privacy of a customer very well.
One of the perfect example of decentralized cryptocurrency assets exchange is etherdelta.com.
What is Decentralized exchange?
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