What is DEX Exchange?

A DEX (decentralized exchange) operates in a non-centralized manner, serving as a type of cryptocurrency exchange. There is no central authority or intermediary for transactions on DEX. Instead, a DEX or decentralized exchange uses a peer-to-peer (P2P) network allowing investors to directly trade cryptocurrencies with each other. Decentralized exchanges operate using a blockchain-based protocol that allows the storage, swapping, and interaction with cryptocurrencies through smart contracts that automatically execute transactions. Smart contracts are self-executing contracts that facilitate, verify, and apply the terms of an agreement between two or more parties. They are used to eliminate the need for intermediaries, reduce costs, and increase efficiency in transaction processes. In a DEX, the order book and trading engine are hosted on a decentralized network that allows the transactions to be carried out securely and transparently. This decentralized architecture ensures the exchange is not vulnerable to risks of centralized exchanges such as hacking, […] The post What is DEX Exchange? appeared first on COINTURK NEWS.