A decentralized marketplace is a market place that allows for peer-to-peer transactions that are not governed by a central authority or are restricted to a centralized location. Examples of decentralized marketplaces are foreign exchange markets and blockchain-based markets.
Online decentralized markets are made possible through the use of blockchain and smart contract technologies. The use of blockchain in decentralized marketplaces removes the need for third parties to verify the identity of sellers and buyers interacting with each other within the marketplace. Without the need for third parties to verify and approve transactions decentralized marketplaces typically have lower fees and more security than centralized marketplaces. Due to decentralized marketplaces using blockchain technology and smart contracts they are inherently resistant to censorship from governments or other organizations.
