Centralized exchange Vs Decentralized exchange
Oct 22, 2017 Posted / 17283 Views
A lot has been heard and written about cryptocurrencies, people have started to put their money in the digital currency concept. But what makes these digital currency different from other? The fact that these virtual currencies are in the digital form and they are decentralized is the most sublime thing of the currencies. They are not under any government body is the fact that they differ from other form of currency which has allured many people around the globe. Let us know more about the differences, pros and cons about both Centralized exchange and Decentralized exchange.
It is an exchange market that does not depend on any third party service to hold the customer's funds. Alternatively,the trading happens directly amongst the users in a peer to peer network via an automated process. This system can be attained by making a proxy tokens (they are crypto assets that represent a certain fiat or a crypto currency) or else assets (which can constitute shares in a company) or via a decentralized multi-signature escrow system, amongst other solutions that are presently being developed.
It is basically a website that handles the trading of bitcoin into fiat or any other cryptocurrencies. The basic purpose for an exchange is to permit a person to trade bitcoin for fiat currency and to other cryptocurrencies ( like litecoin, ethereum, etc, ripple).
1. The Exchange control funds
2. It requires personal documents require ( for few features )
3. It might face with downtime or hacking attempts
4. It is not anonymous
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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