The Power of Decentralized Exchange

cryptofy (50) in decentralized • 7 years ago (edited)

The decentralized exchange is a platform in the cryptocurrency market that allows users to take control of their funds by creating contracts through the blockchains. There are various decentralized exchanges in the market that are being used. While some are seemingly slow, others are fast and can keep up with the high volume orders. I am going to highlight on other types of decentralized exchanges that are fast, fully secured and that offer high performance. Decentralized Exchange ensures you get the ultimate experience when transacting in the cryptocurrency market!

Overture

The cryptocurrencies market has grown exponentially over the years and more so in the few past years. The market is flooded with a dozen of decentralized exchanges whereby some are faster compared to others. This technology has eliminated the centralized market, where investors dealt with third parties and introduced the smart contracts on the blockchain. Also, it has allowed the investors to have direct control of funds without having to worry about transactions or losing funds to untrustworthy third parties! With older systems, there is also the risk of being hacked while transacting with third parties.

The smart contract on the blockchain has eliminated the third party risks and brought about a safer way of transacting. However, this upgrade comes with a downside in the trading duration of trading the cryptocurrency. The transaction takes a longer time than when on a centralized system. The safety factor from the smart contract on the blockchain and the speed factor from the centralized exchanges are what brought about the now much used decentralized exchanges which are operated with an entirely off -chain machine engine. The new decentralized system that uses the two concepts of the smart contracts on blockchain and the centralized system is the Neon Exchange (NEX) which I will expound on below.

Smart Contracts

Bitcoin was the first blockchain to hit the market in the year 2008 and is still the leading cryptocurrency at the moment. Blockchains are decentralized ledgers that operate independently from the two parties that transact. The system is verifiable, permanent and does not need a third party to authorize any transaction. The first programmable blockchain to be launched was the smart contract. The Smart contract allowed investors to trade without worry since the program is secure and hacking is almost impossible! The blockchain smart contracts allow more complex transactions to take place and one of them is the decentralized exchange.

Decentralized Exchange

There have been various decentralized exchanges that have come up. Among the various decentralized exchanges, the NEX is the most outstanding among the other decentralized exchanges. The NEX user performance is more improved and secure compared to other decentralized exchanges. Former decentralization exchanges were redundantly slow and could not be termed as safe. The decentralized exchange on the blockchain performance is prolonged and uses broad network bandwidth. The high degree of confidentiality has enabled the decentralization exchange to be among the current conventional regarding the cryptocurrency trading. It is because none of the earlier systems had such kind of efficiency in performance. Other common decentralization exchanges are the OpenLedger, the RuDEX, and the Bitshares among others.

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Decentralization Trending

Centralization has been trending on the block for quite some time until decentralization was realized. However, centralization is still a favorite method of exchange due to its readiness to perform. Centralization regardless of its popularity has some risk factors that can expose transactions to hacking and theft. One of the hazardous factors is security. The centralized exchange is revealed to be hacked since it contains the involvement of third parties who can easily expose it to hacking. Another dangerous element in the centralized methods is the danger of sanctions. Investors cannot withdraw their money from individual exchanges when the penalties are applied. Political risk is also another challenge facing centralization of the cryptocurrency!

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BitShares

BitShares is one of the decentralized platforms which has several advantages to its users. With its decentralization factor, BitShares is high in performance and is trading at a stable price. Bitshares has referral programs that benefit investors in addition to options of recurring and scheduled payments that make the system convenient. Bitshares accounts are transferable with natural accounts names and allow other statements that are dynamic.
BitShares have excellent performance and are pretty fast in the processing speed where they can do up to 100000 transactions per second. This factor makes it possible to transact on instant operations. BitShares are ahead of the visa and MasterCard whereby the decentralized platform has recorded more network activities compared to other cryptocurrency exchanges.

BitAssets and SmartCoins

Smart coins, just like other cryptocurrencies there price level is supported by other assets. The SmartCoin usually work like other cryptocurrency coins since they are traded freely with no specific limitations. The primary currency consists of the reserve funds, and the conversation can be carried out at any given time depending on the market rates.

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Decentralization Advantages

Many factors make decentralization one of the most convenient and proficient exchanges in the cryptocurrency market. These factors have made decentralization functional and comfortable for cryptocurrency investors. One of the key benefits is the use of cryptocurrency debit cards. These cards are linked to the user's wallets and can allow the cryptocurrency to convert into Fiat-money across the outlets. The decentralized exchanges also have low commissions and fees which is convenient for investors. The systems offer detailed mobile applications which are updated continuously ensuring the transactions are suitable for users. Their referral programs are also highly rated, and the full-time technicians provide support 24/7.