What is a Decentralised Exchange and How does it work?
The foundation of decentralisation is based on the concept of eliminating intermediaries, along with the fees, risk, and privacy concerns that come with it.
Decentralised markets that we have been seeing in everyday life include real-estate and foreign exchange. Forex traders ascertained a rate by communicating with other forex traders around the world. There is no fixed place where one can exchange currency. Similarly, real estate requires a buyer and a seller to agree at a certain rate to finalise a transaction. There is no singular place for buyers and sellers to go through an intermediary to fix the rate and control the transaction.
Blockchains like Bitcoin are decentralised and Decentralised Finance (DeFi) is also swiftly gaining popularity.
Decentralised exchanges (DEX) also...