DEX stands for “decentralized exchange” and CEX stands for “centralized exchange”. Let’s take a look at how DEX works in comparison with CEX.
DEX: you benefit, not intermediaries
Imagine this situation. You come to rest abroad. The resort is simply wonderful, and the market with local exotic fruits is especially good. You don’t want to miss the chance to taste something extraordinary. But you can’t pay with a card on the market, you need cash. So you head to the exchange office and you get local banknotes. But here’s the annoyance – at a rate unfavorable for you. Who will love this?
!DEX – EXCHANGE WHERE YOU CAN INFLUENCE THE COURSE
DEX appeared in 2018 and works on the principle of matching the buy and sell orders for assets. Only participants (peer-to-peer) are involved in trade, there are no intermediaries.
The difference between DEX and CEX
- DEX allows you to track the exchange rate.
- DEX provides complete privacy to users.
- The decentralized exchange system cannot be influenced by third forces, only the users themselves.
- DEX allows users to earn passive income in exchange for providing liquidity.
- Ability to collectively confront and balance the influence of large asset holders.
- The decentralized exchange does not store user assets, so they cannot be lost as a result of a hacker attack or other unforeseen circumstances.
!THERE ARE ABOUT 300 DECENTRALIZED EXCHANGES
By the way, there are several thousand centralized exchanges.
Disadvantages of DEX
Exchanges that are governed by smart contracts cannot trade cryptocurrencies that do not support this technology.
It also has low liquidity compared to centralized exchanges. But this is gradually changing, as the number of participants showing interest in decentralized exchanges is growing.
Our opinion. Today Free TON lacks a partner program with DEX technology. The emergence of such a partner will open up new perspectives for members of the Free TON community. It can be equated with the emergence of its own banking system, where the exchange rate can be collectively tracked, monopolies can be avoided, and services can be provided to different clients and partners.