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Decentralized Exchanges: The Future of the Cryptocoin Market

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The blockchain and cryptocurrency revolution has hit hard and fast. Digital coin entrepreneurs are offering new opportunities every day, and it can be hard to tell what makes the best crypto exchange for you. One exciting new development in the cryptocoin markets that is sure to benefit everyone in the digital coin community, however, is the rise of decentralized exchange sites.

Halo Platform is building the most diverse and user-friendly cryptocurrency toolboxes on the web. The latest addition to our customizable suite of services is HaloDEX — our secure and low-cost decentralized exchange. But what sets decentralized exchanges apart, and why is it that many in the crypto community are calling decentralized exchanges the future of the cryptocoin market?

Centralized and Quasi-Decentralized Exchanges

Getting down to the nitty-gritty, there are two major types of cryptocurrency exchanges: centralized and decentralized. However, centralized exchanges are also broken down based on whether they are custodial or non-custodial.

Custodial exchanges, including Coinbase, Bitfinex, and Gemini, manage user assets through an internal ledger that maintains the balances in users’ digital coin wallets. Custodial exchange sites are the most traditional form of centralized digital coin trading. They typically allow for quick processing time, and millions of people around the world rely on them for their daily digital coin trades. Unfortunately, however, these centralized exchanges commonly hold huge amounts of funds in centralized wallets, which are commonly targeted by cybercriminals seeking to hack in and steal exchange users’ digital coins.

In comparison, non-custodial exchanges, which can be characterized as quasi-decentralized, do not directly manage users’ wallets. This hybrid approach offers some security benefits, but they do not operate in the fully trustless environment of a decentralized exchange site. It’s possible that a security breach can be prevented by more robust smart contract development, but it’s up to the developer to design it with appropriate safeguards in mind, and ultimately the consumer to do their homework to determine what security measures are in effect.

Decentralization Brings a New Wave of Crypto Exchanges

The third category is that of decentralized exchanges, which many believe to be the future of the cryptocoin market. Decentralization — which is characterized by a lack of centralized management — has been a hallmark of the blockchain and cryptocurrency revolution. However, there are only a few decentralized exchanges (commonly referred to as “DEX”) in existence due to the technological challenges associated with building such an advanced software application.

Halo Platform’s skilled team of programmers, software architects, and cryptocurrency experts have worked night and day to develop the advanced blockchain technology that supports HaloDEX. Unlike exchanges that rely on the Ethereum blockchain and ERC-20 tokens, Halo Platform runs HaloDEX on its own blockchain that is orders of a magnitude faster than Ethereum’s blockchain. The HaloDex uses advanced technology to ensure all connected clients receive updates in realtime allowing the chain to handle what it is meant to handle, the ledger changes. That makes HaloDEX scalable to accommodate high demand in addition to being truly trustless and lightning fast. While there are a few other decentralized exchange sites out there, few can match the quality and sophistication of HaloDEX, which has the potential to become the most popular crypto exchange on the web. To find out more about HaloDEX and the other exciting offerings from Halo Platform, join our community.

Twitter — https://twitter.com/Halo_Platform

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Youtube — https://www.youtube.com/channel/UCZqP3U9jFO0XTV6EYNt1dqg

Instagram — https://www.instagram.com/halo_platform/

LinkedIn — https://www.linkedin.com/company/haloplatform/

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