Explain the Concept of “Decentralized Exchange” (DEX).
A Decentralized Exchange (DEX) is a peer-to-peer marketplace that allows users to trade cryptocurrencies directly with each other without the need for a central intermediary like a traditional exchange. Trades are executed via smart contracts on a blockchain, giving users non-custodial control over their funds, which reduces counterparty risk.
Glossar
DEX
Architecture ⎊ Decentralized exchanges, or DEXs, represent a fundamental shift in financial market structure, enabling peer-to-peer trading of crypto assets without intermediaries.
Smart Contracts
Function ⎊ Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a decentralized ledger.
Decentralized Exchange (DEX)
Platform ⎊ A Decentralized Exchange, or DEX, represents a non-custodial trading platform built upon smart contracts, enabling peer-to-peer exchange of cryptocurrencies and derivatives without requiring a central intermediary to hold user funds.
Cex
Exchange ⎊ In cryptocurrency markets, Cex denotes a centralized exchange, a platform facilitating the trading of digital assets against fiat currencies or other cryptocurrencies.