ECOMDEX is the Solution
The concept of decentralization using blockchain technology stems from the very idea of this technology. Everyone is familiar with the term DEX (Decentralized Exchange), which means a peer-to-peer exchange allowing users to trade cryptocurrency or other digital assets without the need for an intermediary.
This idea is completely different from the idea of centralized exchanges. These platforms are owned privately which means that there is a third party with its own motives and priorities — sitting in the middle of every transaction made. As a result, these private companies have oversight of those transactions, and collect and hold details on all its customers, besides transactions conducted on centralized exchanges are custodial — meaning the platform holds the asset that is being exchanged. Decentralized exchanges tackle both of these issues, offering theoretically complete anonymity and, crucially, non-custodial transactions. This means the actual asset being exchanged never passes through the hands of an intermediary
One of the key issues associated with any type of exchange is what is known as liquidity. In the simplest way it can be defined as the possibility of concluding transactions of any size at any time.
So-called market makers are responsible for providing liquidity on the market. As its name implies, market making connotes the process involved in defining the prices of assets and simultaneously providing liquidity to the market. In other words, a market maker does create liquidity for a financial asset.