A decentralized exchange (DEX) allows direct peer-to-peer trading via smart contracts, eliminating the need for a central authority. Users connect their wallets to the platform, trade directly from their wallets, and smart contracts facilitate transparent order matching and execution. Liquidity pools and decentralized governance may also be utilized. This approach ensures greater user control, transparency, and censorship resistance compared to centralized exchanges, marking a fundamental aspect of decentralized exchange development.
A decentralized exchange (DEX) allows direct peer-to-peer trading via smart contracts, eliminating the need for a central authority. Users connect their wallets to the platform, trade directly from their wallets, and smart contracts facilitate transparent order matching and execution. Liquidity pools and decentralized governance may also be utilized. This approach ensures greater user control, transparency, and censorship resistance compared to centralized exchanges, marking a fundamental aspect of decentralized exchange development.