The blooming blockchain sector is tightly reliant on crypto exchanges. The trade of crypto assets keeps the industry flowing, and exchanges are a vital link. However, as the blockchain sector strives for constant development with decentralized transparency, exchanges have a long way to go. Moreover, recent history has shown many problems related to the stability and even the safety of these exchanges. So what can be done to bring exchange technology to the next level?
Decentralized exchanges for increased safety
Crypto exchanges are distributed into two camps: decentralized exchanges (DEXs) and centralized exchanges (CEXs). Besides the difference of two letters, these exchanges also differ significantly in their mode of operation. Decentralized exchanges offer direct peer-to-peer transactions without an intermediary or custodian handing over fund management.
Centralized exchanges, however, lack this independence. Moreover, the centralized foundation these platforms rely on makes them more vulnerable to hacks and other kinds of attacks. For this reason, CEX platforms are constantly finding themselves in the spotlight for mishandling customer funds, such as the notorious case of the now-bankrupt FTX.
Besides advantages at the fundamental level of a decentralized trading platform, a DEX often comes with benefits such as higher token availability, higher anonymity and reduced counterparty risk.
DEX development: Where are we at?
Although the transition to the decentralized direction of crypto exchanges might sound like a no-brainer, it is more complex than it looks. To get there, DEXs need to overcome multiple drawbacks and challenges. With a complete solution still under development, using a DEX for trading requires users to have some technical knowledge.
Executives Jumping ship! | This Week in Crypto – Jul 10, 2023Firstly, the DEX user needs a wallet capable of interacting with smart contracts. Secondly, some preliminary understanding of keeping user funds safe is necessary. Finally, the user’s wallet must be funded with the correct native tokens to avoid asset loss.
Still, as developers work on improving their products, DEXs are becoming better. Therefore, decentralized exchanges seem like the natural direction for crypto exchange evolution.
Increased safety and usability on perpetual DEXs
As advances in the DEX sector keep popping up, users can now explore attractive new opportunities. One of them, DPEX, is a perpetual DEX operating on the Polygon blockchain to bring the sector a newer, safer level of securely trading digital assets. DPEX takes a lot of pride in being a perpetual exchange, meaning the chain contracts have no expiry date, enabling trading for as long as the user wants. This way, traders can take advantage of trading opportunities while making profits without worrying about expiring contracts.
DPEX aims to provide its users with both smooth trading and increased security. The platform reaches these goals with immediate transaction execution and zero price impact. Besides this, DPEX roots for participation.
The DPEX Foundation enables leveraged trading and on-chain voting, giving participants control over their assets and the ability to challenge the exchange system. Furthermore, by holding DPEX tokens, recently airdropped to early-bird participants, users become part of the platform’s ecosystem, gaining a say in crucial platform development.
The future of DEXs
Thanks to their higher security compared to many CEX solutions, DEXs are an organic direction for future crypto exchanges. While there is no denying that a lot of development is still required, the industry has seen some notable developments in safety and usability. At the end of the day, the challenges are there to be overcome, and DEX exchanges are getting better day by day.
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