What is Decentralized Exchange?
Intro to Decentralized Exchanges
Decentralized Finance (DeFi) has demonstrated that financial markets, similar to those in traditional Web2 environments, can operate in a decentralized and trustless manner. The primary example of DeFi is a Decentralized Exchange, or DEX, which facilitates transparent financial transactions (trades) directly on the blockchain via smart contracts. DEXs contain multiple components, such as a backend (smart contracts) and frontend interface (for users to interact with the DEX smart contracts easily), and APIs, allowing developers to integrate DEX functionality into their own applications or dApps such as wallets and other Web3 protocols.
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