Decentralized cryptocurrency exchange

Decentralized cryptocurrency exchange

A decentralized cryptocurrency exchange is an exchange market that utilizes blockchain or another decentralized technology to enable peer to peer transfer of digital assets without reliance on a trusted third party to hold funds.

Edit ID  5284250 

Alex Dean"Added content"
Alex Dean edited on 11 Oct, 2017
Edits made to:
Description (+229/-75 characters)
Article (+12 rows) (+12 cells) (+1454 characters)
Further reading (+2 rows) (+3 cells) (+130 characters)
Categories (+2 topics)
Related Topics (+4 topics)
Topic thumbnail

Decentralized cryptocurrency exchange

Edit to enter a brief description of Decentralized cryptocurrency exchange.

A decentralized cryptocurrency exchange is an exchange market that utilizes blockchain or another decentralized technology to enable peer to peer transfer of digital assets without reliance on a trusted third party to hold funds.

Article

Introduction

A decentralized cryptocurrency exchange is an exchange market that utilizes blockchain or another decentralized technology to enable peer to peer transfer of digital assets without reliance on a trusted third party to hold funds.

Advantages over centralized exchanges

Centralized cryptocurrencies exchanges have experienced significant hacks and loss of funds due to problems with cryptocurrency security. The Mt. Gox exchange was forced to halt trading and declare bankruptcy in 2014 and after hot wallet private keys were compromised and approximately 744,000 BTC were stolen. Cryptsy. Bitfinex. QuadrigaCX.

Decentralized exchanges may also provide improved censorship resistance and resilience to regulation as they hold no funds in central location to be seized.

Challenges

Decentralized exchanges face various technical challenges in order to match centralized exchanges in terms of liquidity, speed, and feature sets.

Development

A variety of protocols intended to develop standards for interoperability for decentralized exchanges such as 0x are being developed.

Atomic Swaps

Atomic swaps allow users to directly transact with one another peer to peer while bypassing even decentralized exchanges. The first atomic swap between Bitcoin and Litecoin was performed by Litecoin creator Charlie Lee on Sep 22, 2017.

List of decentralized cryptocurrency exchanges

BitShares

Coinffeine

Decentrex

District0x

EtherDelta

Heat

Localbitcoins

Lykke

Open Ledger

TenX

The Worldwide Asset eXchange (WAX)

Waves DEX

Further reading

Author
Title
Link

Daniel Cawrey

Mt. Gox Trading Halts as Bitcoin Businesses Move to Assure Investors

https://www.coindesk.com/mt-gox-trading-halts-bitcoin-businesses-move-assure-investors/

Stan Higgins

The Bitfinex Bitcoin Hack: What We Know (And Don't Know)

https://www.coindesk.com/bitfinex-bitcoin-hack-know-dont-know/

Categories
Related Topics
Golden logo
Text is available under the Creative Commons Attribution-ShareAlike 4.0; additional terms apply. By using this site, you agree to our Terms & Conditions.