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.
Please follow our Community Guidelines
Related Posts
Anderson Ezie
Is Ethereum Centralized?
Filip Dimkovski
7 Best Risk-Free Decentralized Exchanges in 2023
Thasni Maya
Best dApps for Making Money
Anderson Ezie
How to Mint NFTs Using dApps
Filip Dimkovski
Understanding DEX Aggregators
Filip Dimkovski
Pangolin: Avalanche's Innovative Cross-Chain DEX
Filip Dimkovski
How to Interact With dApps
Filip Dimkovski
What Is Slippage in Crypto?
Can't find what you're looking for?