Decentralized exchange (DEX)

A decentralized exchange (DEX) is a type of cryptocurrency exchange that operates on a distributed ledger technology (DLT), such as blockchain, and allows direct peer-to-peer trading of digital assets without the need for intermediaries or a central authority. DEX offers decentralized control and access, enabling trading with a high level of security and personal control over digital assets. The decentralization of exchanges ensures that no third parties can influence or manipulate trades, which often happen in centralized exchanges. DEX offers traders transparency, privacy, and security, since the trading process is handled by a distributed network of nodes, instead of a single entity that can be hacked or controlled. Decentralized exchanges can also facilitate faster transactions and lower fees compared to centralized exchanges, which often have higher fees or slow transaction processing times. The decentralized nature of DEX ensures that users always have control over their assets, allowing them to trade, own, and manage their digital assets securely and efficiently.