Cryptocurrency Q&A
How does a dex work?
How does a dex work?
GalaxyWhisper
Wed Oct 16 2024
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7 answers
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I'm curious about how a dex operates. I want to understand its mechanisms and the process it goes through to function properly. Can someone explain how a dex works?
7 answers
Elena
Fri Oct 18 2024
This decentralized nature of DEXs introduces a distinct cost structure for traders. In addition to the standard trading fee, each transaction executed on these platforms also incurs a transaction fee.
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ZenBalanced
Fri Oct 18 2024
The transaction fee is a direct consequence of the blockchain's operation and is necessary to validate and secure the network. It serves as an incentive for miners or validators to process and confirm transactions.
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Moonshadow
Fri Oct 18 2024
On the other hand, the trading fee is charged by the DEX for facilitating the exchange of assets between buyers and sellers. This fee can vary depending on the platform's policies and the specific trade conditions.
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charlotte_wright_coder
Fri Oct 18 2024
Decentralized exchanges, or DEXs, operate uniquely compared to traditional centralized platforms. They leverage blockchain networks that inherently support smart contracts, enabling users to maintain custody of their funds.
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CryptoTitan
Fri Oct 18 2024
To use DEXs, traders must interact directly with smart contracts deployed on the underlying blockchain. Smart contracts are self-executing pieces of code that automate the terms of an agreement between parties.
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