The Benefit of Decentralized Exchanges
What’s it like trading cryptocurrencies in decentralized exchanges? There is no central authority or outrageous fees. Trading is instant and engaging, directing people to each other peer to peer.
The Counos Platform has developed decentralized exchanges giving direct access to community users for cryptocurrencies listed in decentralized exchange. The service lets users convert directly, peer to peer. Users buy, sell or exchange between each other crypto to crypto or crypto to fiat without the need for a third party. Much like securities, they may use escrow services to close each deal securely and without fear of fraud. There is no need to open a bank account and link to the platform in order to make a trade. Best yet, one may manage digital assets without limitations or steep costs. However Counos, as the overseer of trades, confirms their security and validity.
Unlike other exchanges, Cuonos does not require the storage of one’s digital assets on the exchange. As a result, risk is minimized in case of a hack. In this way users are protected against fraud or by possible mistakes made by the exchange. Transactions are guaranteed with the Counos Escrow service, again without the presence of a third party. By registering at least two private keys, the transaction will be registered.
The architect and founder of the Counos platform explains, “In fact, the final agreement of the seller and buyer or guaranteeing the transaction for either of parties by the third party or the overseer will confirm cryptocurrencies exchange.” This third party may be a person both parties choose perhaps a lawyer or notary. Counos creates a contract with them to take care of escrow. In this way, the buyer and seller finalize their deal with 2 private keys so that both parties can control their assets in an escrow wallet. After the deal is finalized, funds in the escrow wallet are released to both parties appropriately.
Ghamari believes his exchange sets him apart from competition. According to Ghamari, “Decentralized exchanges reflect the philosophy of blockchain technology and provide users a truly decentralized experience.”
They are the future, considering the better security features with users in full control. For example, users control funds, with no requirement for KYC or AML or collaboration with any third party network or service provider.
Ghamari adds that there is no “external government involvement with the exception of exchanges being regulated.” Additionally, no single point of failure in decentralized servers is the added appeal. Ghamari says, “We have a long way to go before we make exchanges fully decentralized. But we are nearly there.”
Written by: Alice Hlidkova
Photo credit: Counos.io