What is a DEX?

Lesson 7


Decentralized exchanges are a type of cryptocurrency exchange which allows for direct peer-to-peer cryptocurrency transactions to take place online and with no intermediary. The most Common decentralized exchange is Uniswap The aim is to solve the problems that are inherent in centralized exchanges. They create p2p markets directly on the blockchain which allows traders to store and operate funds. Centralized — users must be identified, and their coins are kept in the accounts belonging to companies. Decentralized exchanges do the exact opposite. Decentralized exchanges do not store user assets. Therefore, neither hacker attacks nor the total collapse of the exchange can lead to a loss of funds. The absence of a single entry point, through which one could gain access to all assets and data, complicates work for hackers and makes an attack meaningless which distinguishes decentralized exchanges from centralized ones that are hacked