On December 6, Dune Data showed a rapid surge in trading volume on DEXes over the past month.Trading volume on the decentralized exchange reached $400 million in 24 hours and reached $33 billion over the past week.
With the rapid development of the blockchain industry, decentralized exchanges are becoming increasingly popular. Although the idea of DEXes arrived late, it is now strong and in full swing, and it’s completely possible that it will be able to replace CEXes as the mainstream option for the future.
Keeping this in mind Encentive was designed to provide a transaction process that is both user friendly as well as provide sufficient liquidity. Assist users in a safe and convenient way to generate their own DEX with one click and provide this service at 0 cost and with no pressure to have to open the road to generate income.
Part 1: The meaning of DEX and CEX, respectively
A DEX is a decentralized exchange and is essentially a new type of pair matching that allows people to place orders and trade cryptocurrencies without an intermediary institution managing the ledger or controlling user funds.Through the matching engine, transactions (buying and selling) of digital assets occur directly between participants, which is completed point-to-point.
CEXes, called Centralized Exchanges, are platforms integrating the functions of traditional exchanges, brokerages and investment banks. Represented by Binance, Coinbase and Kraken, CEXes generate a large number of users and a huge trading volume.
Unlike CEXes, a decentralized exchanges do not need to control the customers’ assets, which are held in the customer’s non-custodial wallets, therefore - greatly reducing the risk of loss.
For DEX transactions users do not need to perform a KYC, which means users do not risk personal information disclosure. As long as the users keep their on-chain wallets safe, there will be no asset theft risks.
Part 2: Why is DEX more promising than CEX?
* Asset control
On centralized exchanges, users' assets are controlled by centralized trade platforms. Users need to load their assets on to their wallets of the the particular trading platform. This makes it extremely vulnerable to hackers due to the large amount of money.
DEX user assets are controlled completely by the user himself and is not controlled by the platform at all. Users do not need to transfer their assets to the platform's wallet. User transactions are completed directly point to point and the platform is only responsible for the transaction flow.
* Capital risk factor
As mentioned before, CEX trading platforms store a large number of user assets, which makes it easy to attract hackers and can greatly increase the risk of someone running off with the user’s money.
As for DEXes, one point is that the user does not need to load assets to the platform wallet. Another point is that it only needs the user’s on-chain wallet in order to perform an operation, as long as the user can keep on-chain wallet safe. Even if a certain user's wallet is compromised, it will not affect the asset security of other users.
* Transaction transparency
In CEX transactions completed between users are done by the platform. Transaction information is recorded on the internal ledger of the trading platform. There is very little transparency and the risk of tampering with transaction records are high.
On decentralized exchanges user transactions are completed and recorded on the blockchain. The transactions are validated by miners and uploaded on the blockchain. The transaction information is stored within the block. All information is public and available and cannot be tampered with.
Part 3: What is Encentive going provide?
Cryptocurrency exchanges provide an important source of liquidity to the global cryptocurrency market, and as trading volume expands in the market, leading trading platforms with operational advantages will naturally become a hot commodity. Simple operation and low cost transactions will be the key factor of trading platforms to gain more popularity.
Hence the conception of Encentive. With to simple operating guidelines, users can issue their own DEX on the public mainstream chain with one click and receive the full commission income and platform currency value.
Even if you're not a developer or IT savvy, being a regular user, you can create your own DEX deal with Encentive. So creating DEX through Encentive not only saves development and audit costs, but there’s also no fees to be paid to the platform.
Encentive will also update the latest Defi gameplay in real time were users can get up-to-date currency circulation information. More importantly, all of the DEX platforms share liquidity.
At the same time, Encentive will also provide routes to DEX such as Uni or Curve, and the user-created DEX can run as long as there is one user.
Simply put, with the continuous development of the blockchain industry, decentralized exchanges are the way to go and the current trend. Improving the DEX transaction experience world wide will mean to have user friendly operations, low cost and no pressure, shared liquidity. That means there is no reason why Encentive will not become the absolute favorite user choice.