Who wouldn’t enjoy the power and complete control over the business that they laid the roots for? That is what decentralization is all about. The concept of decentralization is widely popular among blockchain-based crypto businesses. Decentralized exchanges are the most trending exchanges among potential investors in the cryptosphere because of its multifold benefits. In this article, we are going to take a closer look at decentralized exchanges and their functioning. For starters, let’s see what decentralized exchanges are.
What are decentralized exchanges?
The word “ decentralized” itself describes what decentralized exchanges are. They operate completely decentralized, i.e., without involvement from a central authority. These exchanges do not rely on any third party to control or hold customer funds. The transactions in these platforms happen directly peer-to-peer between two parties.
What is a whitelabel decentralized exchange?
Whitelabel solutions are nothing but ready-made solutions that come with a name, brand, logo, UX/UI, necessary integrations for the business according to customer preferences. A whitelabel decentralized exchange is a readily available exchange that allows customers to trade between themselves through automated processes directly. With a whitelabel crypto exchange software, customers can buy and sell quickly and efficiently at cost-effective prices. Since decentralized whitelabel exchanges eliminate the need for a third party, the customers are enabled a risk-free, hassle-free business experience. How does a decentralized exchange work? Let’s find out.
Working process of a decentralized exchange
- The traders submit buy/sell requests, which are added to the order book with the mentioned amount, order type, and other details
- A cryptographic hash of that particular order is created by the trader
- The interested party signs the order book, and a counter order is created
- Now the agreement from both parties is carried forward to the smart contracts
- The smart contracts verify the trader’s signature
- After verification, smart contracts execute the transactions with trading fees, and the funds are transferred into the trader’s wallet.
What are the key features of a whitelabel decentralized exchange?
- Multi-currency support – A whitelabel exchange should support multiple cryptocurrency options for customers to trade with. The scalability will help them conduct transactions at ease.
- Multi-language support – Integration of multiple languages will bring in customers from all around the world for the exchange and helps them trade without any obscurity.
- Automated KYC/AML – Automated KYC/AML allows only authentic users into the exchange and verifies each transaction, allowing a smooth business experience.
- High-volume TPS – Higher the TPS volume, better will be the experience for the customers who trade in the platform. A high-volume TPS helps traders conduct multiple transactions seamlessly and drives better results.
- Dominant trade engine – As everything is automated in a decentralized platform, it is mandatory to have a powerful, high-performance trading engine that will help matching buy and sell orders with minimum latency.
- Auto swap – As decentralized exchanges allow peer-to-peer transactions, an auto swap option will help customers conduct transactions at ease. The transactions can be executed or eliminated entirely without any breach of agreements.
- Secure wallets – The Whitelabel exchange should possess a secure crypto wallet with multi-signature encryptions for customers to store their cryptos.
- High-volume Liquidity – The exchange is connected to other external exchanges, which brings in more liquidity, enabling easier buying and selling processes for the customers.
- High-end security – The exchange should be secured with multi-layered security protocols to provide customers with a risk-free experience.
These are all the preliminary factors you need to know about a decentralized crypto exchange. If you are looking to create your own decentralized crypto exchange, conduct massive research and choose the best company to offer you reliable whitelabel solutions.
One of the sort after companies with skilled developers in the current market is Blockchain App Factory. Their vast knowledge and experience in the field will help you build a robust decentralized exchange platform with top trending features and functionalities at cost-effective prices, which will make huge rounds among potential global investors. Get in touch with them to attain maximum benefits and profits for your business.