Hello everyone. My name is Ava and I’m delighted to be here to share my research and findings as part of Blockchain Academy Malaysia’s editorial crew.
To prepare this article, I spent several hours studying and researching on two different types of exchanges, decentralized exchange and centralized exchange. I discovered some amazing facts and info which you yourself will be able to read and decide the pros and cons of both types.
What is DDEX?
DDEX is a decentralized exchange platform that facilitates peer-to-peer trading of cryptocurrencies. By leveraging the Ethereum blockchain and the 0x protocol, DDEX is able to provide a secure, efficient and trust less trading environment.
Users can trade directly from their wallets without the need for intermediaries, ensuring full control over their assets and tokens. According to latest numbers, DDEX has transformed the cryptocurrency landscape, providing a secure and private alternative to centralized exchanges.
This decentralized exchange platform is designed for trading Ethereum-based tokens and is a significant player in the decentralized finance (DeFi) ecosystem too. It is able to facilitate secure, anonymous,and efficient trading without the need for a central authority.
Decentralized Exchange Account
Let’s take a look at why majority of the time users in the know, seem to prefer opening trading accounts in both types of exchanges. Why do most have two accounnts? Why many seem to prefer working on a decentralized exchange more than the centralized one?
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No KYC Required
Users can trade without undergoing Know Your Customer (KYC) procedures, preserving their anonymity. I think this is one of the biggest benefit users see.
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Direct Wallet Trading
Trades are executed directly from users’ wallets, ensuring full control over their funds. This is certainly another benefit as custodial wallets owned by users on a Centralized Exchange (CEX) is never in the control of the wallet owners directly. Exchanges can take custody of the funds in your wallet. (Similar to what happened in the Mt.Gox’s case.)
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Compatibility with MetaMask
MetaMask on the other hand can be considered one of the top non-custodial wallets prefered by mainstream users. It is secure and safe to use. Why am I saying this? Because users have full control over their private keys. MetaMask also supports a wide range of Ethereum-based tokens and NFTs, not to mention, its compatibility with a range of dApps (decentralized applications).
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Compatibility with Brave
DDEX is fully compatible with the Brave web browser, ensuring a seamless and secure decentralized exchange experience. Brave’s built-in privacy features and fast browsing capabilities complement DDEX’s robust trading platform, providing users with enhanced security and efficiency. By leveraging Brave’s ad-blocking and tracker-blocking technologies, DDEX users can trade cryptocurrencies with greater confidence and privacy.
How DDEX Works?
During trades, there are several handshakes (parties) required for orders to be digitally signed and executed and the data stored in the chain.
- First off, there is a Maker (you and me, traders) who will need to send a digitally signed broadcast order to the Relayer.
- Then, the Relayer’s function will be to post the order into the Order book.
- Finally, the Taker will locate the order from the Order book and swill digitally sign it with a counterorder to the DEX smart contract for execution.
Now that you understand how trades work on a DEX, let’s see what are some of the important core features of a Decentralized Exchange.
Core Features of DDEX
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- Smart Contracts:
Utilizes Ethereum smart contracts to automate and secure transactions, minimizing the risk of hacks and fraud. - 0x Protocol:
Employs the 0x protocol to create a decentralized liquidity pool for ERC20 tokens, ensuring high liquidity and efficient trading. - User Interface:
Features a simple and intuitive interface, allowing users to trade with ease.
- Smart Contracts:
Market and Trading Pairs
A DDEX offers a variety of trading pairs, including popular tokens like EOSDAC, BRM, and HOT. While liquidity can vary, the platform is continually expanding its market offerings to attract more traders.
Incentive Programs
DDEX runs various promotional campaigns, such as rewarding users with HOT tokens for completing transactions, which encourages user engagement and increases trading activity on the platform.
Latest Developments
Decentralized Exchanges have been integrating new technologies and expanding its token listings to enhance user experience. Recent updates include improved trading algorithms and enhanced security measures to protect user funds and data.
In fact, a good example would be the Solana blockchain.
Solana (SOL) has become a real contender to Ethereum’s DDEX. According to a recent Coin Edition’s report, the decentralized exchange (DEX) volume on Solana surged to a record high, surpassing even Ethereum, the largest blockchain by Total Value Locked (TVL).
Future Prospects of Decentralized Exchange (DEX)
With ongoing plans to expand its token listings and improve user features, DDEX is poised to become a major player in the decentralized exchange market. The platform’s focus on security, user experience, and innovation will drive its growth in the coming years.
Video Tutorial
In case you prefer watching a quick-video tutorial.
Conclusion
In conclusion, a decentralized exchange like DDEX represents the future of cryptocurrency exchanges, offering a secure, anonymous, and user-friendly platform for trading Ethereum-based tokens. As it continues to innovate and grow, DDEX is well-positioned to meet the needs of the evolving cryptocurrency market.
The emphasis on decentralized finance (DeFi) and blockchain technology will ensure that DDEX remains a significant player in the industry, now and in the future.
Would you consider opening an account with a decentralized exchange? Share your thoughts in the comments below.
For Further Reading
DDEX Revealed: What Is It, How It Works (by Christine)
Blockchain Security: Threats and Best Practices (by Amarjit S.)
References
- Coincentral.com
https://coincentral.com/dex-decentralized-exchanges-explained/ - 4ireLabs.com
https://4irelabs.com/articles/what-is-decentralised-exchange/
- AI-Driven Predictive Analytics Forecasting Demand in Supply Chain - October 28, 2024
- Decentralized Exchange DDEX Better Than Centralized? - July 30, 2024
