Decentralized Exchanges (DEXes)
It’s no doubt that centralized exchanges (Traditional banking systems) have been the leading players in controlling an economy and its citizens’ money. This monopoly came along with its fair share of challenges. Security concerns and lack of full control over their own money are some of the challenges most investors experience.
Instead of peer to peers freaking about the challenges, embraced them and allowed them to guide their future investments through incredible innovations such as Defi (Smart contracts protocols and Dapps all build on ethereum blockchain technology) products.
DEX, or decentralized exchange, is one of DeFi products defined as a cryptocurrency exchange run on the Ethereum blockchain through smart contracts. In 2019 DEXes boasted a monthly volume turnover of USD 40m. By 2nd September 2020, according to the Defi pulse, the total value locked in DeFi had risen above USD 9 bn.
The increased confidence in crypto adoption has resulted in spontaneous improvement within DEXes.
PROS;
Secure –no third party involved one has full control of their money
Decentralized nature-DEXes have no central server, ensuring safety.
Enhanced privacy guaranteed