Today we will review about WAVES DEX (Decentralized Exchange) and some interactions of different version of waves, Waves is not only a wallet but a decentralized exchange as well which makes it stand apart but for those who are not familiar with these terms the very first thing to know, what is Decentralized exchange.
The term DEX refers to exchanges with no central server just like the basic idea of creating cryptocurrencies increasing anonymity and stability for stake holders and investors, the technology of DEX is also the same, DEX has no mediator(the one which holds coins) like other normal exchanges, the coins are converted off chain directly from the blocks of one coin to another.
But however DEX carry risk factors with them it may contain anonymity but almost every DEX in the world uses proxy token or third parties if a third party is asleep or shut down coins get stuck just like FIAT transfer, this factor shall be kept in mind before using any DEX, KOMODO is working on an algorithm which will be released soon to improve DEX technology which will be instant and is about to launch this year.
HOW TO EXCHANGE:
Exchanging coins on WAVES is really easy when on the main screen of the exchange page we will see coins list, order book, market depth, open orders, history etc, but that should not make you worried, the main screen of exchange will look like this,
To exchange a coin we must select a pair from the left hand side of the screen for this article we will convert LTC to BTC, after selecting the coin we have to enter the amount in buy or sell coin from the extreme bottom right corner which may look like this,
Just simply click on the SELL LTC (or any currency in your case) and you are done, your newly converted BTC will be in your wallet soon, depends on the coins, amount, blocks, waves is exchanged instantly usually as this DEX is built on top of WAVES blockchain and uses WAVES as a proxy token.
FEW TERMINOLOGIES TO KNOW:
In WAVES multi-coin wallet you will see a work called coin leasing, what is coin leasing?
Coin Leasing is the process where big crypto investors lease their coins for interests/ profits on monthly or planned basis instead of buying and investing on big machines and heavy systems (In POW algorithm) to mine coins coin leasing is an alternative where you sit back and just enjoy the profits, but coin leasing is suitable and profitable for crypto investors with significantly larger investments to spare.
Another term you will see while searching for DEX is atomic swap, Atomic cross chain swap (ACCS) is the core concept/algorithm behind DEX technology which allows coins to swap each other chains and get exchanged without trusting each other safely, the concept is good but WAVES isn’t built on Atomic Swap technology.
To conclude DEX till now aren’t the most suitable choices for exchange purposes the technology maybe good but there can be issues and errors as we said before, KOMODO on the other hand is working really hard to improve DEX technology minimizing proxy tokens and security risks and totally blockchain enforced transactions on DEX.