Before jumping into the DEX’s history let’s take a look at what Decentralized exchange (DEX) is:
A decentralized exchange (DEX) is a peer-to-peer (P2P) crypto trading platform that operates without the involvement of a central authority. So transactions can be made directly between users (peer-to-peer) without the requirement for a trusted intermediary and do not have KYC / AML (or CDD) processes.
On top of this, decentralized exchanges are much more secure against hackers as there is no single point of failure like in centralized exchanges.
Also, a decentralized exchange is a non-custodial protocol where users maintain their own private keys and are in complete control of their assets and trades. The non-custodial exchanges never hold the asset on their servers or service. They simply match a buyer with a seller and provide an element of discovery of bid / ask pricing.
Let’s take a look at DEX’s history: Decentralized exchange trading in the early days was slow, clumsy, and aimed only at tech-savvy users. With regard to ICOs, 2017 saw the emergence of real-world uses for DEXs as an efficient source of liquidity for tokens that were not yet supported by major exchanges.
Those who were looking to sell out of failing ICOs had a tendency to use DEXs, as top-tier exchanges are uncommon on ICO exchanges. As ICOs began to crash and fade, DEXs grew more accessible, secure, and quickly becoming popular as an Ethereum token holders’ preferred method of exchanging digital assets.
Now, we have DEXs with intuitive user interfaces that are accessible to everyone with a working grasp of Ethereum wallet basics, such as creating new Ethereum addresses or trading one token for another. In keeping with the premise that individuals should own and govern their own data privately, safely, and seamlessly – exactly as the decentralized trading visionaries envisioned.
As we all know, in 2020, we faced the high gas fees issue in ethereum. However, we have a solution to this problem and we got the solution to this problem from the Cardano blockchain. The network was built to rectify some of the limitations and shortcomings of Ethereum. Specifically, Cardano aims to solve problems related to scalability, interoperability, and sustainability on cryptocurrency platforms.
The solution to the problem is simple: instead of ethereum, we should use the Cardano blockchain. If you don’t know what is Cardano and how it’s solving the problem then I recommend reading this article: https://cardax.blog/why-use-decentralized-exchanges-dex-on-cardano-instead-of-ethereum/
Now you’re probably wondering if there’s any decentralized exchange built on top of the Cardano blockchain. Now Cardax decentralized exchange (DEX) is solving this problem. There are many DEXs planning to launch on the Cardano blockchain but Cardax is the first and only Cardano DEX that has won project catalyst. If you don’t know what project catalyst is then read here at https://cardanocataly.st/faq/ also if you want to know more information about Cardax then visit Cardax’s website https://cardax.io/ and check the FAQ section.