If you’re heavily involved in the crypto trade, then you know all about decentralized exchanges (DEX). They’ve taken the community by storm over the past year or two and now, they’re bigger than ever. Still, there are plenty of newcomers who have no idea what this revolutionary technology is. This article is for you.
CRYPTO CLASS: WHAT IS A DEX?
Digital currency exchanges are not rocket science. You go to one because you have a certain amount of one currency and want to exchange it for another. Therefore, you go to something like Binance and exchange something like Bitcoin for Ethereum at the current rate. The exchange is the middleman between these two customers. It helps one person get their desired currency in exchange for another. Now, a decentralized exchange is a different story.
With a DEX, there is no middleman. There is no third party. Instead, trading happens between two customers directly in what we call a peer-to-peer connection (P2P). This is mainly achieved through proxy tokens, a multi-signature system and other technologies in development now.
CRYPTO CLASS: WHAT ARE THE BENEFITS OF A DEX?
Now that you know what a decentralized exchange is, you might wonder why someone would want to build one? Well, the most obvious issues that DEX solves are that of trust and security. With a centralized exchange, one must trust the third party in control. They are the ones that handle your funds and if you keep them on an exchange, it’s out of your control. With a decentralized exchange though, users control all finances with their own wallet. Furthermore, a decentralized exchange offers a high degree of privacy as customers don’t need to give any personal details to traders. If you learn anything from all of this, it’s that anonymity, security and freedom are the main benefits of a decentralized exchange.
CRYPTO CLASS: KELVIN DEX IS THE FUTURE
There are several decentralized exchanges similar to Kelvin but we have some unique features that will set us apart from the rest. However, since we are still in the developing stages, then we can not release these competitive advantages to the public. But stay with us in the coming months as we have some exciting news to release. Thanks so much for your interest and continued support!