{"id":1028,"date":"2023-01-18T10:42:00","date_gmt":"2023-01-18T02:42:00","guid":{"rendered":"https:\/\/insights.digift.io\/?p=1028"},"modified":"2024-10-29T11:30:54","modified_gmt":"2024-10-29T03:30:54","slug":"whats-a-decentralised-exchange-dex-and-why-does-it-matter","status":"publish","type":"post","link":"https:\/\/insights.digift.io\/zh\/whats-a-decentralised-exchange-dex-and-why-does-it-matter\/","title":{"rendered":"What\u2019s a Decentralised Exchange (DEX), and why does it matter?"},"content":{"rendered":"

What is a DEX?<\/strong><\/p>\n\n\n\n

Today, in the Web 2.0 world, if you want to buy a stock on the stock market, you need to go through layers of intermediaries, which increases the time and cost of transactions, and because you\u2019ve transferred your money into your brokerage account \u2013 which your broker controls \u2013 there\u2019s always a risk that your money might get lost along the way.<\/a><\/p>\n\n\n\n

In the cryptocurrency world, exchanges using this traditional model are called centralized exchanges, or CEXs.  CEXs typically require users to deposit assets (cryptocurrencies or fiat) in their custody before any trading can happen. Unfortunately, this means a bad actor CEX can then misuse user assets for the CEX\u2019s own benefit .<\/p>\n\n\n\n

On the other hand, a decentralised exchange, or DEX, is a peer-to-peer marketplace where transactions occur directly between users without intermediaries facilitating the custody and transfer of assets. Instead, DEXs substitute these intermediaries with blockchain technology; by connecting your wallet to a DEX, you can trade directly with other sellers on the DEX without needing anyone else to help make the transaction happen. That\u2019s possible because of smart contracts, which ensure that both sides must hold up their end of the deal before assets are exchanged.<\/p>\n\n\n\n

<\/div>\n\n\n\n

DEX vs CEX<\/strong><\/p>\n\n\n\n

CEXs offers a traditional Web 2.0 trading experience for cryptocurrency assets. Most people are used to depositing funds with their broker, so the overall user flow is easier to understand and may feel more familiar.   By contrast, DEXs introduce a new user experience  which can take some time and effort to understand.<\/p>\n\n\n\n

The biggest advantage of DEXs is that users hold their own assets and can trade directly through their own wallet. That means complete control over the trading process, as well as total transparency on where your funds are. Even if a DEX goes bankrupt, for example, the user\u2019s funds are still safe, because the assets are held by the user rather than the DEX.\\<\/p>\n\n\n\n

 <\/strong><\/td>DEX<\/strong><\/td>CEX<\/strong><\/td><\/tr>
Token Custodian<\/strong><\/td>No token custodian<\/td>Trading platform<\/td><\/tr>
Trading Engine<\/strong><\/td>Total transparency<\/td>No transparency<\/td><\/tr>
Trading Experience<\/strong><\/td>Direct wallet-to-wallet<\/td>Reliant on trading platform<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Table 1. Comparison of DEX vs. CEX<\/strong><\/p>\n\n\n\n

<\/div>\n\n\n\n

DigiFT is a Digital Assets DEX<\/strong><\/p>\n\n\n\n

DigiFT is the first and only DEX currently in the Monetary Authority of Singapore (MAS) FinTech Regulatory Sandbox. We are an exempt Recognised Market Operator and Capital Markets Services Licensee.<\/p>\n\n\n\n

We operate a digital asset DEX, built on the public Ethereum blockchain, that offers real world assets for crypto natives. DigiFT\u2019s technology helps map traditional financial assets onto the blockchain in a fully compliant manner, allowing investors to trade and hold asset-backed security tokens directly through their wallets. This increases the availability of capital for issuers and provides liquidity to previously illiquid assets.<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

\u95dc\u65bc DigiFT  <\/strong><\/p>\n\n\n\n

DigiFT aims to provide regulated decentralized finance solutions on the Ethereum public blockchain. We are operating the first regulation-abiding decentralized digital asset exchange where asset owners can issue blockchain-based security tokens and investors can trade with continuous liquidity via an Automatic Market Maker mechanism. We are a global outfit backed by well-established venture partners. The founding team originates from Goldman Sachs, UBS, Citibank, and Morgan Stanley, and has deep blockchain technology knowledge, having successfully developed digital asset exchange and products in the past. <\/p>\n\n\n\n

<\/div>\n\n\n\n

For more information, please contact:<\/strong> <\/strong><\/p>\n\n\n\n

media@digift.com.sg<\/a> <\/p>","protected":false},"excerpt":{"rendered":"

What is a DEX? Today, in the Web 2.0 world, if you want to buy a stock on the stock market, you need to go through layers of intermediaries, which increases the time and cost of transactions<\/p>","protected":false},"author":256897716,"featured_media":971,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_oasis_is_in_workflow":0,"_oasis_original":0,"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"page_builder":"","_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false,"_links_to":"","_links_to_target":""},"categories":[132565],"tags":[],"class_list":["post-1028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-academy"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/pg7Ide-gA","jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/insights.digift.io\/wp-content\/uploads\/2024\/10\/2822954ebd3b4195b80dea5b187a14ed.jpg?fit=740%2C400&ssl=1","_links":{"self":[{"href":"https:\/\/insights.digift.io\/zh\/wp-json\/wp\/v2\/posts\/1028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insights.digift.io\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insights.digift.io\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insights.digift.io\/zh\/wp-json\/wp\/v2\/users\/256897716"}],"replies":[{"embeddable":true,"href":"https:\/\/insights.digift.io\/zh\/wp-json\/wp\/v2\/comments?post=1028"}],"version-history":[{"count":4,"href":"https:\/\/insights.digift.io\/zh\/wp-json\/wp\/v2\/posts\/1028\/revisions"}],"predecessor-version":[{"id":1484,"href":"https:\/\/insights.digift.io\/zh\/wp-json\/wp\/v2\/posts\/1028\/revisions\/1484"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insights.digift.io\/zh\/wp-json\/wp\/v2\/media\/971"}],"wp:attachment":[{"href":"https:\/\/insights.digift.io\/zh\/wp-json\/wp\/v2\/media?parent=1028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insights.digift.io\/zh\/wp-json\/wp\/v2\/categories?post=1028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insights.digift.io\/zh\/wp-json\/wp\/v2\/tags?post=1028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}