Smart Contracts and Decentralized Exchanges: Future of CoVEX Platformhttps://medium.com/@covexcoin/smart-contracts-and-decentralized-exchanges-future-of-covex-platform-4ce8d8797c4c2018 may as well turn out to be the banner year for the much-hyped crypto markets. Cryptocurrencies and decentralized technologies are flourishing. The figures speak for themselves — market capitalizations has soared, transaction volume has gone through the ceiling, and mass adoption by individuals, companies, and governments has reached the global scale.
Thanks to Blockchain, we have moved towards a trustless economy, where we don’t need trusted third parties to trade. Yet today’s exchanges are still centralized. Centralized exchanges have turned out to be vulnerable to attacks, reacts poorly to atypical Blockchain events such as hard forks and are often comes with high regulatory risks.
These exchanges often keep their platforms off-chain, meaning they function as escrows for their clients, and transactions are not stored on the Blockchain. This can lead to massive security breaches and unsafe storage of funds, information, and private keys. Crypto trading is associated with risks. However, at CoVEX, we believe that but crypto traders shouldn’t face any other risks other than those they are ready to take.
Decentralized Exchanges — simply called DEXs — can help transfer crypto trading back to the hands of crypto traders and thereby minimizing risks. DEXs aims to tackle the hurdles associated with centralized structures by creating P2P (peer-to-peer) marketplaces directly on the Blockchain.
However, implementing a fully decentralized and efficient exchange remains a mirage even though DEXs have moved from the R&D phase. Most exchanges are centralized because it is the straightforward way to proceed. It’s either too technically complex or costly to implement a fully decentralized exchange — for now, at least.
