What is a centralized exchange?

OKX:http://ok.b615.com/6/

DEX is an inevitable product in the Defi world. The value interaction is realized through the agreement in the form of intelligent contract. The user's asset data, transaction records and other information will not be stored in the centralized server, but will be recorded in the blockchain in the form of code, which theoretically realizes the openness and distrust of encrypted asset storage.

The typical advantages of DEX are decentralization, anonymity, security and anti-censorship, etc. Users keep the private key of encrypted assets by themselves, and do not have to trust assets in traditional exchanges, so there will be no security problems such as misappropriation of assets and internal theft by exchanges. However, it is worth noting that the assets of the centralized exchange are equivalent to centralized custody, and there is customer service. If the password is lost, it can be recovered. If the private key of DEX's assets is lost, it is equivalent to the loss of assets and cannot be recovered.

DEX began to sprout in 2018 and broke out in the summer of Defi in 2020. Although DEX's transactions are not as efficient and fast as the traditional CEX, and the number of users is relatively small, the development of decentralized exchanges has also entered a new stage in the past two years, especially after DEX introduced AMM (Automatic Market Maker), which effectively solved the liquidity problem of DEX. At present, DEX is also developing towards diversification, and its functions are gradually improving. The development prospect remains to be seen.