Decentralized exchanges aren’t coordinated by one single entity. Instead, they run on a distributed ledger, like cryptocurrencies themselves do. This structure means that a decentralized exchange does not hold customers’ funds, positions, or information, and only serves as a matching and routing layer for trade orders.
Cryptocurrency exchanges are for all intents and purposes, the backbone of the cryptocurrency market. Every asset needs to have a market where it can be traded and so does cryptocurrency. Decentralized cryptocurrency exchange helps facilitate the same.
So what exactly are Decentralized Cryptocurrency Exchanges?
In order to understand what a decentralized cryptocurrency exchange is, one must know what a cryptocurrency exchange does. A cryptocurrency exchange is a platform that facilitates the conversion of fiat money to cryptocurrency and vice-versa. It also facilitates the conversion of different cryptocurrency pairs.
In a decentralized cryptocurrency exchanger, no third-party escrow intermediary is required to hold the funds of the participants in the exchange transaction.
Here are a few advantages of decentralized cryptocurrency exchanges:
- More Secure
Decentralized cryptocurrency exchanges are potentially more secure and there are fewer chances of it getting hacked. It is less vulnerable to malicious attacks and hacks. This is possible as, in the decentralized exchange, there is no single point of entry, just like a blockchain. So the hacker will need to compromise more than half of the network to be able to hijack the system.
- Quicker and Cheaper Transactions
Zero involvement of the third-party authenticator significantly reduces fees and lag time before buy/sell orders are processed. Decentralized cryptocurrency exchanges have the potential to provide a platform that facilitates faster, cheaper and more cost-effective crypto exchange transactions.
- Funds Controlled solely by the Users
In a decentralized exchange, the funds are completely controlled by the user as there is no central body that governs the transactions. This is primarily owned and controlled by all the participants so there is no central corporation that has custody of customer deposits. The control of the money is always in the hands of the users since the network uses a P2P network architecture.
- Seamless Integration with Secure Hardware Wallets
This is one of the most important advantages of the decentralized exchanges. There are multiple decentralized exchanges that offer seamless integration with popular hardware wallets that ensures a much safer transaction space. Users directly can send coins from their hardware wallets to the smart contract of many decentralized exchanges.
Keeping in mind these benefits of decentralized cryptocurrency exchanges, MLM Vibes has come up with its own exchange software that will facilitate the users to securely exchange there cryptocurrency.
To know more about the software log on to www.mlmvibes.com. To know the product better ask for the demo and experience the software before you buy it.