One of the trends in the cryptocurrency and blockchain arena in 2021 has effectively shifted how all traditional financial services, including saving, trading, insurance, loans, and exchanges work is Decentralized Finance, providing services globally in a permissionless system built on the Blockchain infrastructure. One of the projects within this DeFi landscape is Decentralized Exchange platforms (DEX).
Built with Smart Contracts and integrated with Cryptocurrency wallets, DeFi DEXs automatically match buyers and sellers and provide fast and safe transactions for the users. This accessible and straightforward approach to managing funds was well accepted among users and is drawing more crypto enthusiasts to such platforms.
At Blockchain App Factory, we provide premium DeFi Exchange Platform development solutions that are sure to launch your business venture in the DeFi Space to immense heights. Our experience developing DeFi platforms and protocols, with a team of competent and adept developers coupled with white-label and scalable solutions, will give your DeFi DEX platform the boost it needs to succeed in this lucrative sector
Why is Decentralized Finance or DeFi gaining a lot of traction these days? To answer that question, consider this. Wouldn’t you prefer a network that gives you the ability to monetize and trade your assets more freely and efficiently? That is exactly what DeFi, an open finance movement that transcends all boundaries that centralized financial authorities hold, offers. With just a smartphone and an internet connection, individuals from all over the world can now have access to a range of services without any apprehensions since the DeFi system is transparent, permissionless, flexible, and interoperable, running on Smart Contracts supported by a blockchain network.
There are several applications or dApps within DeFi that offer a wide range of financial services that are better than their centralized counterparts. Some of them include decentralized exchanges, lending platforms, Stablecoins, prediction markets, synthetic assets, and wrapped Bitcoins (WBTC). Other concepts that have been built around DeFi include yield farming, liquidity mining, and composability, to name just a few.
Ever since the advent of cryptocurrency, centralized exchanges have been at the forefront, allowing buying and selling crypto, although a few rules and regulations had to be abided by. Trusting third parties to secure and monitor transactions was the norm since blockchain is not in use here. On top of that, verification of transactions, personal information, and corporate information for companies are required for further processing.
But on the bright side, in the event of technical errors or loss of password, users can fall back on support teams who help with the restoration, an advantage that is very convenient for users. Some popular cryptocurrency exchanges include Binance, Coinbase, and LocalBitcoins. Although it has a host of benefits, its disadvantages outweigh the benefits. To overcome these drawbacks, Decentralized exchanges came into place.
DeFi exchanges are quite similar to centralized ones; only there is no third party integration or any central authority breathing down one’s neck. All funds and sensitive data regarding transactions are stored on a blockchain network. Users have a bigger hand, i.e., more control over their assets than centralized authorities, and there is an absence of hackers or risks. Compared to traditional exchanges, here, the fee for using the platform is little to none. DeFi exchanges have Smart Contracts that automate and process transactions and other functions without any reliance on humans, which is a bane in Centralized Exchanges. Another reason for DeFi’s rising prominence is the protection they offer to crypto assets through private keys. This level of security is unbeatable in the crypto realm.
Although both exchanges have their highs and lows, DEXs always rise to the occasion with their speed and security that are unparalleled, making this a viable business venture for entrepreneurs looking to make it big in the crypto ecosystem.
DeFi exchanges’ workflow is streamlined and accessible, making it uncomplicated for even amateurs and those entering the crypto space. The workflow of DEXs goes like this
Have a look at the popular DEXs that are currently functioning in the DeFi space. With our robust developmental services that fit your DEX platform with all the latest features and technical advancements, you can compete with the top DEXs in the market.
It is quite clear that DeFi exchanges hold several advantages over their centralized equals, especially in security and privacy matters. This makes DEXs the preferred platform for the exchange of crypto assets. With rising trends such as AMM, Governance tokens, Yield farming, and derivatives, more users are flocking to DEXs. So if there ever was a right time to launch a formidable DEX platform, it is now. And there’s no better way to go about it than trusting Blockchain App Factory with your project.
Having developed and launched several DeFi protocols to clientele all over the world, we consider ourselves the expert in the field. We possess a stark understanding of all things crypto, and with our team of tech-savvy developers and blockchain experts, your DEX platform stands no chance of loss. Since all our solutions are white label and customizable, you as the business owner can bring to life your vision and interpretations for the DeFi exchange.
Schedule a call with us now to know more about how we can work together and make your vision for a DeFi exchange come to life!