A Decentralized exchange creates a friendly business environment for peer-to-peer trading between the users. The benefits include 100% control of funds by the traders, no chance of a single point of failure, a higher level of privacy and security, non-involvement of any third parties, maintenance of complete anonymity, and no possibility of server downtime.
Some of the popular DEX’s existing in the market are Bisq, Etherdelta, IDEX, Bancor, AirSwap, and Binance DEX. Decentralized Crypto Exchange are mostly created on blockchain networks like Ethereum, EOS, and TRON.
How does DEX development function?
- The user will raise either a buy or a sell order on the platform.
- He has to specify the kind of crypto asset that he prefers, the accepted payment methods, and the period till which the trading for the assets is permitted.
- The platform automatically matches the order requests raised by the users, reviews the submitted bids, and concludes the trading deal once the seller has received the payment from the buyer.
- The smart contract will take care of the transfer of the assets from the seller to the buyer’s digital wallet.
The typical process behind Decentralized crypto exchange development
- The firm’s business requirements will be analyzed thoroughly in the first place.
- A proper outline of the project would be prepared.
- All the needed features will be added to the Decentralized exchange platform after integrating the blockchain technology and the smart contract.
- The exchange will be rigorously tested to eliminate any technical bugs and glitches.
- It will be finally deployed on the operational network or server of the client.
- Software upgrades will be issued regularly according to the feedback received.
The core features available in DEX development
- The acceptance of multiple types of orders like a market order, limit order, and stop-limit order.
- A multi-signature enabled wallet to store the funds of the users safely. Even a hardware wallet that stores cryptos offline can be plugged into the trading platform.
- Multilingual technical support is rendered round the clock in numerous languages.
- Real-time market data will be provided in the form of live charts and graphs.
- Security measures like end-to-end data encryption, SSL implementation, anti-DDoS protection, and multi-factor authentication will be implemented.
- Spot KYC/AML verification will be done for the registered users of the platform.
- A customizable admin console will ensure efficient management of business operations.
- Speedy processing of transactions is ensured through the integration of multiple payment gateways.
- Scalability is ensured by using microservices architecture and it can be deployable on the leading cloud platforms.
- An integrated chat facility is present to ensure smooth communication between the buyer and the seller.
- Instant notifications are sent 24×7 to the users containing important alerts related to trading, price changes, and market movements. This ensures a smooth flow of information.
- An atomic swapping option is available to exchange assets directly without the presence of any middleman.
Though centralized exchanges are currently dominating the cryptocurrency industry, Decentralized crypto exchange development is fast catching up. Centralized platforms are becoming victims of hacking attacks tarnishing their credibility in the market. Decentralized platforms offer the best trading experience and supreme security measures.