Why #privacy ? Because:
decentralized exchanges (DEX) are dynamically emerging and gaining popularity, serving as the foundation of decentralized finance (DeFi). They allow trading cryptocurrencies directly between users (peer-to-peer) without intermediaries, utilizing smart contracts on the blockchain. They provide full control over funds, privacy, and no KYC requirements.
Here are the key aspects of DEX exchange development:
Operating principle: Instead of a company managing the funds, trading occurs automatically through code (smart contracts).
Types of DEX:
AMM (Automated Market Makers): The most popular, using algorithms and liquidity pools instead of an order book (e.g., Uniswap, PancakeSwap).
Order Book DEX: Records orders on-chain or off-chain.
Advantages: The user retains private keys (security), no risk of account blocking by an institution, high transparency.
Challenges: They require basic technical knowledge, and the user bears full responsibility for their assets.
