What is a decentralized trading floor? What is the difference between concentrat

Trading Floor decentralized - Perhaps most people are using the trading platform as Binance , Huobi or Bittrex to purchase coin does not know that we are flooring focus - exchanges are managed by a The company / organization and any assets you hold on the floor are held by the organization, not the decentralized floor. What is decentralized floor? And what is it different from the floor? This article Virtual money blog will be with you to find out.

What is a decentralized trading floor?
The Decentralized Exchange (DEX) is a trading platform that does not rely on a third party to keep your funds, all of your transactions are automated. Direct between users (peer networks). In other words, DEX - a decentralized trading platform that gives complete control over funds and transactions to users, eliminates intermediaries to avoid security risks, hackers and fraud. In addition, the taxation or control of money sources of the decentralized floor is very difficult.

What is the difference between a decentralized floor and a decentralized floor?
1. Fund Control
Trading floor users focus on making money on the floor to facilitate the transaction. These funds are controlled by an intermediary transaction service. This means that command books, as well as custody, are in the hands of centralized flooring services.

In a decentralized e-money exchange platform, the user deals directly with other traders without a central server. There is no centralized service that owns the command line and cached permissions. Therefore, the money is controlled by the user and the parties in the platform.

2. Anonymity
A number of centralized trading platforms each allow for anonymous trading accounts on their platform. However, new government regulations have emerged in recent months that have led to strict compliance with KYC and AML laws. It is difficult to trade anonymously on a centralized electronic money exchange platform. On the other hand, decentralized trading is where everyone can be anonymous.

3. Authentication
The users of the trading platform focus on the platform to authenticate and authorize their transactions. In a way, this platform is a third party middleware that provides reliable cryptographic exchange services.

With decentralized trading , we do not need to depend on an intermediary. With smart contracts and some Blockchain protocol implementations , the entire system is built to provide untrusted authentication and authorization for pre-encrypted transactions.

Value of decentralized trading floor
1. Transactions are processed faster and cheaper
The decentralized platform is capable of facilitating faster, cost-effective transactions than centralized trading. Removal of intermediate authenticators significantly reduces fees and delays before the buy / sell order is processed.

2. More difficult to attack
The decentralized platform does not hold the money of the user and no organization intervenes in the process so the floor attack is difficult. Meanwhile, in history has recorded a lot of attacks on the floor like Bitfinex , Bittrex ...

3. Integrate seamlessly with secure hard wallets
This is a major advantage of decentralized trading . Many decentralized trading platforms offer seamless integration with popular hard drives such as Ledger Nano S or Trezor to ensure a much safer transaction.

Users can send coin directly from their hard wallet to the smart deal of many decentralized trading floors. With centralized trading floors, there is no way for users to manually enter the private key to transfer coin from the hard wallet to the floor. If they do, the chances are high that they will be cheating or tracking the keyboard.

4. Funds are fully controlled by the user
A decentralized trading platform is owned and controlled by all parties involved so no centralized corporation has the right to hold the funds of the client. The money control is always in the hands of users thanks to peer network structure. Transactions occur between parties within the network by means of smart contracts, which can only be controlled by the private key of the parties involved. Users control the private key as well as their capital at any time with decentralized trading platform.

Some disadvantages of decentralized floor
1. Only support for few platforms
The current most common platform for decentralized trading is Ethereum with a number of ERC-20 tokens supported. In the future, some other major platforms such as NEO will be supported by decentralized trading.

2. Hard to use
This is why trading platforms like Binance or Huobi are popular, simply because they are easy to use. Many smart contracts need to be navigated for use in decentralized trading platforms, which can cause dizziness to users, even those who are knowledgeable about pre-coding technology.

The trading floors also have a simple user interface, which is visually organized and easier to start than the decentralized floor.

3. Lack of features & powerful functions
Most decentralized trading platforms only support some basic trading functions. More advanced trading features and tools such as margin trading , stop loss orders, etc. are often missing in decentralized markets. This must be the main reason that decentralized trading floors are not popular in the pre-coding market.

A number of decentralized trading floors are operating
Currently, there are not many decentralized trading floors, because the number of users of DEX is not much, trading volume is low. Some decentralized decoders include IDEX , Etherdelta , Bancor Network , Kyber Network , 0x Protocol , CoinChangeX , DDEX , and others.

Epilogue
Above is the article " What is a decentralized trading floor? What is the difference between concentrated and decentralized flooring you should know? "Hope to bring the most useful information for you readers about this type of trading floor. If you have any questions leave under the comment you will support you offline. Do not forget to Like , Share and 5 star rating to support the virtual money blog offline. Good luck.