Decentralized Exchange (DEX)

A decentralized exchange (DEX) is a peer-to-peer platform that facilitates the buying and selling of cryptocurrencies and Non-fungible tokens (NFTs) without the need for a central authority. Unlike centralized exchanges, which are governed by a central entity and require intermediaries to initiate transactions, decentralized exchanges are free from these intermediaries. These exchanges offer more transparency, anonymity, and better privacy.

Smart contracts are the backbone of these exchanges, as they can execute themselves without human intervention. Users have complete control over their assets and private keys, which keeps them safe from cyber theft. DEX platforms are highly valuable in improving financial inclusion in areas where creating a bank infrastructure is difficult.