Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: Zurcemozz on September 22, 2018, 01:06:50 AM
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Ethereum-based decentralized crypto exchanges like IDEX utilize smart contracts on an immutable blockchain network to process trades in a peer-to-peer manner. Decentralized exchanges are protected from hacking attempts and security breaches because hackers cannot possibly hack into a peer-to-peer network.
On a decentralized exchange like IDEX, users trade crypto with non-custodial wallets like Trezor, Ledger, and MetaMask. Hence, at all times, users have complete control over their funds by connecting their non-custodial wallets to exchanges.
Funds do not leave the wallets of users unless trades are executed on the mainnet of Ethereum, which is irreversible. As such, user funds are never in danger or vulnerable to external attacks.
Decentralized exchanges have already started to appeal to a niche group of traders that are interested in investing in newly launched crypto with low liquidity prior to their integration on centralized exchanges.
Newly created ERC20 tokens and crypto deploy their assets on peer-to-peer digital asset trading platforms first to gain liquidity, as it costs no capital to do so, and then aim for centralized exchange integration.
As for user experience and usability, because most decentralized exchanges are compatible with Ethereum wallets, it is not that much more complex than centralized exchanges. While it requires several more steps, traders that are already technically literate can easily shift to decentralized alternatives.
Source link https://www.ccn.com/decentralized-crypto-exchange-is-solution-to-hacks-will-they-be-ready/