Blockchain 101 Episode 36 – What is a decentralized exchange platform?

Many decentralized exchange platforms have emerged since 2013. There are a few differences when comparing with centralized platforms.

Firstly, decentralized exchanges do not require users to disclose their identity You can just create an account to start trading. Also, each transaction on the decentralized exchange is processed on the blockchain. The transaction only goes through once block validation is completed.

Meanwhile, decentralized exchanges are not responsible for storing user’s asset and private key. By doing so, it mitigates ethical risks and calls for users to be responsible for the safety of their private keys.

In general, since decentralized exchanges have low liquidity and slow trading speed, they only account for 0.03% of the world’s cryptocurrency trading volume. The tokens of decentralized exchange projects such as Airswap, Kyber, 0x and OmiseGo are available for trading on huobi pro.