What is a Decentralized Exchange?
Decentralized Exchange (DEX) is a platform that does not rely on third parties to keep your money, all user transactions are automated and directly between users (peer to peer network). In other words, DEX - a decentralized exchange gives full control of funds and transactions to users, eliminating intermediaries to avoid risks of security issues, hackers, fraud. In addition, the taxation or control of funds of decentralized exchanges is very difficult. Based on these views, MainFinex was created to create a reliable digital asset trading platform!
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What is The Difference Between Decentralized And Centralized Floors?
1. Right to control the fund
Exchange users focus on making deposits to the exchange to facilitate trading. These funds are controlled by an intermediary trading service. This means that the order books, as well as the custody rights, are in the hands of centralized platform services.
In a decentralized cryptocurrency exchange platform, users transact directly with other traders without a central server. There is no centralized service that owns command books and custody rights. Therefore, money is controlled by users and participants in this platform.
2. Anonymity
A number of centralized exchanges each allow anonymous trading accounts on their platform. However, new government regulations that have emerged in recent months have resulted in strict compliance with KYC and AML laws. It is difficult to trade anonymously on a centralized cryptocurrency exchange. In contrast, decentralized exchanges are where everyone can remain anonymous.
3. Authentication
Centralized exchange users depend on the platform to authenticate and authorize their transactions. In a way, the platform is a third-party intermediary that provides reliable crypto exchange services.
With decentralized exchanges , we do not need to depend on an intermediary. By smart contracts and some Blockchain protocol implementations , the entire system is built to provide unreliable authentication and authorization of cryptocurrency exchange transactions.
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The Value Of The Decentralized Exchange MainFinex
1. Transactions are processed faster and cheaper
Decentralized exchange MainFinex has the ability to facilitate transactions to be done faster, more cost effectively than centralized exchanges. The elimination of the intermediary authenticator significantly reduces fees and the delay time before the buy / sell order is processed.
2. More difficult to attack
Decentralized exchange MainFinex does not hold user funds and nor does any organization interfere with the process, so it is difficult for the exchange to be hacked. Meanwhile, history has recorded many attacks on centralized exchanges such as Bitfinex , Bittrex ...
3. Seamless integration with secure hardware wallets
This is a major advantage of the decentralized exchange MainFinex . Many decentralized exchanges offer seamless integration with popular hardware wallets like Ledger Nano S or Trezor to ensure a much safer trading.
Users can send coins directly from their hardware wallets to the smart contracts of many decentralized exchanges. With centralized exchanges, there is no way for users to manually fill in the private key to transfer coins from hardware wallets to the exchange. Because if you do, the possibility is that they will be cheated or track the keyboard.
4. The fund is completely controlled by the user
MainFinex is a decentralized exchange owned and controlled by all parties so no centralized corporation has the right to hold customer funds. Money control is always in the hands of users thanks to the peer network structure. Transactions occur between parties in the network with smart contracts, which can only be controlled by the private keys of the parties involved. Users control private keys as well as their capital at all times with decentralized exchanges.
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Some Disadvantages Of MainFinex Decentralized Floor
1. Only support for few platforms
Currently the most popular platform for decentralized exchanges is Ethereum with a number of ERC-20 tokens that support trading. In the future some other major platforms like NEO will also be supported by decentralized exchanges.
2. More difficult to use
This is why exchanges like Binance or Huobi are popular, simply because they are easy to use. A lot of smart contracts need to be navigated for use in decentralized exchanges, which can be dizzy for users, even for those who are knowledgeable about cryptocurrency technology.
Centralized exchanges also have a simple user interface, which is visually organized and easier to get started than decentralized exchanges.
3. Lack of powerful features & functions
Most decentralized exchanges only support some basic trading functions. More in-depth trading features and tools such as margin trading , stop-loss orders, etc. are often missing from decentralized exchanges. This is probably the main reason why decentralized exchanges are still not popular in the cryptocurrency market.
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Epilogue
Above is the article " What is the decentralized exchange MainFinex ? What is the difference between centralized and decentralized exchanges? Hope to bring the most useful information for readers about this type of exchange. If you have any questions please leave below the comment I will support you.
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ACCURATE INFORMATION
- Website: https://mainfinex.com/index.html
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- WHITEPAPER: https://mainfinex.com/whitepaper.pdf
- My BitCointalk profile: https://bitcointalk.org/index.php?action=profile;u=2602172
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