Decentralized exchanges (DEXs) and swaps. What are differences?

All of us are regularly come across pictures of centralized exchanges depicting graphs of bidding, rates of currencies and shares of companies. We have a general idea of what it is and what a stock or currency exchange looks like. We also understand that the exchange is a complex tool with an infinite number of numbers, algorithms, settings. Where, at least, there are such necessary attributes for analysis as trading graphs and market depth. Not everyone, but very many people know that on the exchange you can buy at a market price, or you can put up limit orders, what is such an instrument as stop-loss. And that the endless process of purchases and sales is in constant movement. And to figure out all this is not so simple. Non -professionals on modern stock and foreign exchanges have no chance for success. Professional traders sell and buy assets by using high -frequency trading and arbitration bots.

Often, if necessary, to buy any currency, we are faced with swaps. You can swap both cash and electronic currency. There are purchase courses and swap rates with a fixed margin. Everything is simple and clear. If rate do not suit, you are looking for another place to perform the operation. Or wait for better rate to change.

And now the world stepped towards the decentralization of all public life processes using blockchain technology. Behind the first financial platform Bitcoin others began to appear. The rapid growth of the cryptocurrency industry began. The number of assets in this area began to grow exponentially. And all of them must somehow exchange and trade. We need market prices. And places where you can buy or sell. And this requires cryptocurrency exchanges.

And they appeared. In large quantities. Both cryptocurrency exchanges and swaps. But centralized. Controlled by the authorities. With a full set of restrictions from state regulatory authorities. Because it was unrealistic to launch a full-scale exchange on the blockchain. Although true crypto enthusiasts were not satisfied. Well, who wants to bother with a humiliating verification procedure? To provide your personal data and then constantly worry about whether your exchange will go bankrupt, whether your account will be blocked. Live with an obsessive thought how to make money, and not lose.

Neither bitcoin nor the platforms that followed - Litecoin, Dash, Zcash, Doge Coin and others - could provide the possibility of the functioning of full-scale decentralized cryptocurrency exchanges. Too low transaction processing speed. After some time, second-generation blockchains appeared. Ethereum, Tron, Polkadot, Cardano and so on. They already had the opportunity to simulate assets and create superstructures in the form of decentralized applications.

These platforms are multifunctional, speed higher. It has already become possible to create simple swaps on them. And they appeared. Uniswap, Pancake Swap, Sushi Swap and others. Fine! A great opportunity to swap one cryptocurrency asset to another without going beyond the blockchain platform. But in the absence of full-scale decentralized exchanges a substitution of sense occurred. Many people began to call them decentralized exchanges, DEXs. And this situation is still preserved.

Well, but what about full-scale decentralized exchanges? Where there would be a complete functionality for the trade in cryptocurrency, satisfying the requirements of professional traders and a market makers, where it would be possible to trade using bots. Robotization is an inexorable command of time. How much are you going to earn manually? For school dinner?

The world does not stand still, innovative technologies are developing. The ability to create decentralized exchanges appeared on third -generation blockchains. Famous in the cryptocurrency industry the American programmer Dan Larimer and the mathematician Charles Hoskinson, together with the group of developers of Compumatrix company, created the technology that they called the Graphene. Unique in capabilities.

And using this technology, platform called BitShares was created. This blockchain has an almost cosmic transaction processing speed, up to 80 thousand operations per second. And it is multifunctional. For the first time in crypto industry the DPoS (Delegated Proof of Stake) blocks confirmation protocol was implemented.

On this blockchain it became possible to emit cryptocurrency assets, create and develop various projects, including full -fledged decentralized cryptocurrency exchanges. And a lot of other possibilities. Currently, it is one of the most technologically advanced blockchain in the cryptocurrency industry. And it continues to develop. On BitShares entrepreneurs also have the possibility of creating and developing decentralized autonomous organizations to develop their businesses.

At the moment about two million registered users on the platform. A number of projects of various orientations are functioning, including decentralized exchanges: GDEX, XBTS DEX, EVRAZ DEX, IOBANKER DEX, DELIONDEX, PIIRATECASH DEX. On this blockchain platform hold reserves and support gateways such centralized exchanges as Binance, Huobi, AEX, Poloniex, Bittrex, and a number of others. Absolutely niche sphere. And from the point of view of earnings, a great opportunity for investors, traders and market makers.

Sorry for this late… I’m scared for reply for this coz maybe scam… :neutral_face: How please?