What is Decentralized Exchange? A Step-By-Step Startup Guide for Beginners
www.pulsehyip.com
2
In this starter’s guide you’ll learn: 1) What is decentralization?
8) What is DApps?
2) What is the Centralized Exchange?
9) Future of Decentralized Exchange?
3) What is Decentralized exchange?
10) How to Build Decentralized Exchange Platform?
4) Difference Between Centralized & decentralized exchange?
11) About Pulsehyip
5) Benefits of decentralized Exchange?
12) Benefits of Decentralized Exchange Script
6) How Decentralized Exchange Works?
13) Conclusion.
7) What does decentralized Cryptocurrency mean? www.pulsehyip.com
3
Decentralization Startup Guide: If you are new to decentralized exchange platform then this beginners guide should help point you in all the right directions while making you aware of the many pitfalls that exist.
4
1. What is Decentralization? "A decentralized system is one which needs various parties to make their own independent decisions"
“
Insight a decentralized system, there is no middle centralized authority that makes decisions on behalf of all the parties. Instead, single party, also called a peer, makes local self-decisions towards its individual goals which may possibly struggle with those of other peers. Peers directly interact with each other and share information or provide service to other peers.
6
What is the Centralized Exchange? Centralized exchanges are trading platforms that process like traditional exchange market or stock markets. A centralized exchange is owned and operated by an organization or company that keeps total control over all transactions. Users of centralized exchanges do not have access to the private keys of their exchange account’s wallets. This puts all of the user’s trust in the hands of the exchange builders, as transactions can only be made through the structure provided and approved by a central authority.
7
What is Decentralized Exchange? A decentralized exchange is many things, but I believe an exchange that has following features qualifies to be a DEX:
8
What is Decentralized Exchange? ▸ A decentralized exchange that allows its users to control their own funds or crypto funds. ▸ A DEX that doesn’t have a single point of failure like centralized server hostings or databases that are prone to hacks. ▸ A decentralized exchange that has no trusted third party or middleman setups. ▸ A decentralized exchange that is not controlled by a single or group of organizations.
9
Difference Between Centralized & Decentralized Exchange? • Control of Funds Users of centralized exchange platforms make deposits to the exchange in order to facilitate an exchange/trading transaction. These funds are controlled by the centralized exchanged service. This means that order-books, as well as custody, is firmly in the hands of the centralized platform service. In a decentralized exchange platform, users transact directly with their peers without the need for a central server. There is a no centralized authority service that is in the occupation of order books and custody. Funds are therefore controlled by the users and participants in the platform.
10
Difference Between Centralized & Decentralized Exchange? • Anonymity Some of the centralized platforms used to allow anonymous trading accounts on their platforms. However, the raft of government regulations that have a leap in recent months has led to the attachment to strict KYC and laws. It is difficult to trade anonymously on a centralized cryptocurrency exchange platform. Decentralized exchange platforms are all about anonymity. Recognize them to be the distributed blockchain-equivalent of centralized exchanges.
11
Difference Between Centralized & Decentralized Exchange? • Authentication Users of centralized exchanges depend on the platform to authenticate and enable their transactions. In a way, the platform is a third-party intermediary providing trusted exchange services. In decentralized exchanges, there is no need to depend on a third-party intermediary. indeed of smart contracts and a number of blockchain protocol utilization, the whole system is built to provide trust-less authentication and authorization of exchange transactions.
12
Benefits of Decentralized Exchange?
▸ Faster and Cheaper Transactions ▸ Probably More Difficult to Hack ▸ Ideal Integration with Secure Hardware Wallets ▸ Funds Controlled by Users Rather Than a Central Corporation
13
How Decentralized Exchange Works?
"99% of cryptocurrency transactions still go through centralized exchanges; this trend is expected to be reversed in the coming years." — Nathan Sexter, Consensys
14
How Decentralized Exchange Works?
* Crypto Traders’ capital must remain in their wallets, and cannot be allocated to a third party at any stage. * Buy & Sell Orders must show directly from crypto trader to trader over an inter-blockchain network overlay. * Buy & Sell Orders must be matched directly between users/traders. When one accepts another’s order, their apps communicate to set up the coin exchange process, and this is broadcast over the blockchain network.
15
What does Decentralized Cryptocurrency mean? To understand what a decentralized cryptocurrency exchange is, it is fundamental to first know what a cryptocurrency exchange does. Within the digital currency market, a cryptocurrency exchange is a platform that enables the conversion of fiat money to cryptocurrency as well as the conversion of different cryptocurrency pairs. A decentralized cryptocurrency exchange is one in which the architecture of the platform has no middle controlling server. As a result, no third-party escrow intermediary is required to hold the funds of the users in the exchange transaction.
16
Future of Decentralized Exchange?
17
A lot of decentralized crypto exchanges (DEX) have entered over the past year. A decentralized exchange avoids the third party, depending on decentralized smart contracts to track all transactions. This makes them much faster, as centralized exchange verification can take several days to weeks to complete. In addition, the user maintains control of his or her own funds. There’s no deposit into the exchange and no centralized servers, so they’re theoretically immune to the types of cyber attacks and regulatory problems plaguing centralized exchanges. While decentralization seems like the best option, it still leaves you financially exposed in the event of a market crash.
18
Create Your Own Decentralized Exchange Platform with Robust Decentralized Exchange Script!
19
PULSEHYIP: Pulsehyip is the best DApps (Decentralized Applications) development company in India. It provides the readymade white label decentralized exchange script to build your own decentralized exchange platform instantly. With the help of our decentralized exchange script, your users can buy and sell multiple cryptocurrencies without the need of central authority. Pulsehyip decentralized exchange script provides a multi-signature escrow system to ensure that all trades are carried out honestly.
20
Benefits of our Decentralized Exchange Script: ▸ ▸ ▸ ▸ ▸ ▸ ▸ ▸ ▸
User-friendly and secured decentralized exchange platform Cryptocurrency trading can make in the absence of admin Admin can get a commission fee from both sides Anonymity No KYC process Atomic swapping Highly secured and Faster, Cheaper transactions Open and Transparent In the short period of time, you can increase liquidity ratio exponentially and you can create trust among your users simply by using decentralized exchange script
21
Free Demo for Decentralized Exchange Script FREE DEMO
Our decentralized exchange PHP script is fully functional and tested. We hosted a free demo on our servers. Simply fill the form and our experts will share you the script links and test user accounts.
22
Contact Us Best Cryptocurrency Exchange Script & Blockchain Development Company
▸ ▸
www.pulsehyip.com https://www.pulsehy ip.com/decentralized -exchange-script
23
THANKS! Any questions? You can find us at talktous@pulsehyip.com
