Presently, people are more inclined toward decentralized exchanges rather than centralized ones. Cryptocurrency is a digital currency that helps people in doing online businesses. It helps businesses carry out transactions. Moreover, through digital currencies, people can carry out online trading of their assets by selling and purchasing them in a decentralized medium. The two concepts in the digitalization of payments that got a boom in recent years include DeFi and DEX. This article is going to briefly talk about the DeFi and DEX as to how they work in the field of transactions and, are these digital concepts secure enough to do any transaction.
An Introduction to Decentralized Finance (DeFi)
DeFi, abbreviated as decentralized finance, is a system in cryptocurrency, which is getting more and more popular with every passing day. It is a decentralized financial medium that offers different services to people. These services include decentralized insurance companies, decentralized exchanges among individuals, and decentralized money markets. Further, the main objective of DeFi is as same as DEX. That objective is to replace the centralized system. In DeFi (Decentralized Finance), anonymous organizations allow the participation of every person without any discrimination. Undoubtedly, DeFi provides a decentralized medium, transparency, and a flexible user experience. But at the same time, DeFi is in the initial stages and there is a probability of things that can go wrong with it. Hackers always try to find lope holes in the system to steal money.
Decentralized Exchanges (DEX)
DEX, abbreviated as decentralized exchange, is a medium where digital transactions take place peer-to-peer without any custodian. In this medium, people take over complete control of their assets by themselves. They do not hand over them to the custodian like in a centralized system. This decentralized exchange system offers the best security. On the contrary, in a centralized exchange system, the hacking is mostly unpreventable. Still today, the decentralized exchange medium does not implement KYC (know your customer) on their users. This shows that DEX ensures the anonymity and sovereignty of its users. However, the transaction speed of decentralized exchange is slow. As this medium is ensuring the best security, privacy, and sovereignty, keeping in view all possible benefits the users usually ignore the detriment of the slow transaction.
SpaceDEX: The world’s first truly decentralized exchange
Decentralization is often considered the genuine gateway to break the deadlock of traditional exchanges. Hence, SpaceDEX joined decentralization space to kick away centralization methods that control users’ activities. SpaceDEX exchange is built with the help of DEX protocol with underlying Tequila Chain.
SPACE Foundation leads the SpaceDEX with the help of overseas venture capital and financial institutions. Currently, SPACE Foundation has made true cooperation with the world’s famous scientific institutions for improving the global application ecosystem landing. Further, the Foundation is doing its best to make SpaceDEX widely popular and become the head of decentralized exchanges in the coming time.
Being decentralized exchange, SpaceDEX does not collect users’ data. On SpaceDEX, users can feel transparency. Most importantly, they can control 100 percent of their assets by themselves. And that is what every user wants.
