Centralized, Decentralized And P2P Cryptocurrency Exchanges

Cryptocurrency Exchanges has been modifying its architecture from the day of its birth. In the very initial days, Cryptocurrency Exchanges are designed to function in the centralized network as days go, this business gains popularity and stands straight as a promising business model. Later then, technology demands Crypto Exchanges to incorporate multiple dimensions.
The core design of crypto exchanges is to act as the platform where one can buy or sell virtual currencies. Based on the working methodologies, functionalities, integrated features, service they are broadly classified as
• Centralized Exchange
• Decentralized Exchange
• P2P Exchange
What are Centralized Exchanges?
Centralized Exchanges are the earliest version of exchanges. It is the kind of ecosystem built with trust as the backend. Here, the admin of the Exchange has direct control on trading All the data, funds are stored in the central server.
How Centralized Exchanges Work?
Centralized Exchanges more or less functions as a bank. The admin is the one and only the central authority of the exchange. Users store their own assets inside the exchange.
Multiple Cryptocurrency wallet support
Centralized Exchanges supports multiple Cryptocurrency wallet so that the user can effortlessly participate in trading and enjoy buying new Cryptocurrencies in the market.
Trade Matching Engine
Trade Matching engine plays a vital role in Centralized Cryptocurrency Exchanges. It is the kind of algorithm that runs in the backend of the exchange that matches the order automatically.
Remarkable benefits
Liquidity
Liquidity increases with the increase in the user's basis. Centralized Exchanges have more liquidity than other kinds of Exchanges. Till now these exchanges remain popular among traders.
Fast Transaction
In Centralized Exchanges, the funds and data are stored in the central server, there is a single way path for data, once the trade matches, the transaction happens instantly
Easy maintenance
Centralized Exchanges are easy to maintain quite easy to handle and maintain as there is a central server for storage.
Stability
These kinds of exchanges are highly stable and predictable
User friendly
Centralized Exchanges provide a rich user-friendly experience and high tech features for features.
What are Decentralized Cryptocurrency Exchanges?
Decentralized Exchanges or DEX evolve with the primary concern of solving the problems and inconveniences in the centralized exchanges. This platform runs directly on the blockchain network. Here, trading happens automatically under smart contracts without the involvement of third parties.
How DEX works?
In Dex, a Smart contract is everything that does the job as well as order matching engines. like centralized exchanges users, need not store their assets inside the exchange. Here, traders own full authority for their assets and can store funds in the private wallet or cold wallet.
Atomic Swap
Atomic Swap is the kind of technology incorporated in the DEX, that let traders exchange the pair of Cryptocurrencies belonging to a distinct blockchain network.
No Splitted Trading
In DEX, the user can’t implement splitted trading as all the order matching is under a smart contract. End to end trading alone can be executed.

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