Is a decentralized exchange also a decentralized app?

Asked 3 years ago

What role does a DAPP play in a DEX? Do they act like plugins or is it a way to operate within the decentralized exchange?

Alfredo Lowe

Monday, April 25, 2022

A DEX (Decentralized Exchange) is a DAPP (Decentralized Application) focused on automated market making. A DEX runs on a blockchain network and has the following features:

  • Allows peer-to-peer trading of cryptocurrencies without an intermediary
  • Market participants have total control over their private keys
  • Every transaction is recorded on the blockchain and can be accessed by other network users
  • Verified transactions are immutable

Unlike a Centralized Exchange (CEX), which you can only use for exchanging cryptocurrencies, you can leverage a DEX’s chain to issue new tokens, trade them, and record their transactions seamlessly. This will bring more transparency and credibility to your project.





Write an answer...

Cancel

Please follow our  Community Guidelines

Can't find what you're looking for?