Why are decentralized exchanges so important?
“I definitely hope centralized exchanges go burn in hell as much as possible”
-Vitalik Buterin
The tension between centralized and decentralized exchanges is a never-ending debate in the cryptocurrency space. Depending on which side of the divide you are on, exchanges whether centralized or decentralized evoke resentment and praise in equal measure. Exchanges play a very vital role in the cryptocurrency ecosystem, by offering a gateway between fiat and crypto. Recognizing that they are here to stay, the best we should do is ensure the healthy long-term growth of the space. It is a fact, that both centralized and decentralized exchanges have arguments for and against them. Centralized exchanges are centrally managed by third parties who track the movements of assets and oversee the security of the platform while decentralized exchanges run autonomously with matchers and smart contracts enabling trading to take place peer-to-peer. I believe the risks decentralized exchanges pose can be solved as the ecosystem matures and platforms such as Waves are leading the pack by offering novel solutions. Centralized exchanges on the other hand pose a systemic risk, by creating single points of security failure(Mt. Gox hack being the most famous) and centralization of the space (with large listing fees, wealthy individuals leveraging their money to gain strategic influence in projects etc). It is realistic and healthier to begin from a decentralized model from the start rather than a centralized model that promises future decentralization. This is why I believe decentralized exchanges are doing it right, sacrificing short term benefits for long-term goals.
In this article, I am going to review some of the leading decentralized exchange solutions with a particular focus on the Wavesdex.
Wavesdex
The wavesdex is launched on top of Waveplatform. Wavesplatform was launched in 2016, to create the complete blockchain platform for the token economy. Anyone can launch their token on top of Waves, easily and cheaply at a cost of 1 Wave.
Mining
Wavesplatform is one of the most decentralized projects in the space with over 300 nodes. Coins are mined by leasing waves through Leased Proof-of-Stake in your Waves wallet. Miners need at least 1, 000 Waves to start mining.
Client
You can use the online client or download the downloadable version for PC.
The mobile version for Android and IOS is out.
Gateways: Crypto & Fiat
Has gateways for Waves, Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Dash and Monero
Waves has the best selection of non-Ethereum based coins. Launch of atomic swaps, will open up the wavesdex to more tokens, attracting more traders and volume.
Waves has fiat gateways for US dollar, Euro, Turkish Lira. Currently, WAXEX is a project that will bring the South African Rand gateway to the Wavesplatform. Other African countries will be onboarded after the successful launch of the Rand gateway.
Users can also be able to hold ICOs on the Wavesplatform. Some of the most successful ICOs held on Waves include: Primalbase and Mobilego. So far a total of 16, 424 tokens have been launched on top of Waves.
Waves-NG protocol
Waves-NG was activated last year, and current speed is 100 TPS but this can be activated to over 1000 TPS.
The fast speed of Wavesdex make it particularly suitable for airdrops with over 450TPS being recorded during airdrops.
Waves smart contracts
Waves has already activated non-Turing smart contracts.
Turing complete smart contracts will be activated later this year.
Hardware wallet activation is planned for later this year.
Volume
For an exchange the volume is key, and among decentralized exchanges Wavesdex leads the pack
Advantages of wavesdex include:
✅Comparatively better volume. Waves leads the pack in volume in decentralized exchanges, according to data from Coinmarketcap today, over $5m!
✅Clean interface
✅Quick due to the Waves-NG protocol no network jamming or downtime.
✅Cheapest transaction fees. Commission per order is 0.003 Waves
Other decentralized exchanges and their volumes from Coinmarketcap statistics today are:
Etherdelta
Older, little used Ethereum decentralized exchange. Tokens exchanged through smart contracts.
Switcheo
Neo-based decentralized exchange.
KyberNetwork
Ethereum decentralized exchange. Recent updates include myetherwallet built into it.
IDEX
The most active Ethereum dapp today. Gained popularity for being the place to pick up tokens quickly before listing on centralized exchanges.
Bancor
A ‘decentralized exchange’ tokens exchanged against the native Bancor token. A recent hack resulting in the loss of $23.5m has called into question the decentralization of Bancor protocol.
Barterdex
Built on top of Komodo, in terms of technology this is the most advanced. ERC-20 tokens can be exchanged through atomic swaps and it enjoys fast speeds. The volume though is not that much.
In conclusion, Wavesdex has a lot of positives and has been grown. A lot more is yet to come from the Waves ecosystem which will surely attract more users, hence more publicity for Wavesdex.
