WazirX Decentralized Exchange
WazirX Decentralized Exchange – Before we begin, let’s take a quick look at the differences between a centralized and a decentralized exchange. A centralized exchange such as Binance or Coinbase allows users to buy, sell, or trade cryptocurrencies. You can start trading cryptocurrencies on a centralized exchange by providing your identifying proof to go through the Know Your Customer (KYC) process. A decentralized exchange like Uniswap or Pancakeswap uses smart contracts to facilitate trading. Decentralized exchanges don’t ask you to enter your private information, such as your name, address, or banking details. Transactions are handled between peer to peer by programmatically secure smart contracts.
India’s largest cryptocurrency exchange WazirX to launch a decentralized exchange (DEX). The WazirX decentralized exchange is currently being tested and will be launched next month, said Nischal Shetty, Co-founder of WazirX. A decentralized exchange operates without an intermediary organization, and the trades are executed on self-executing smart contracts. This development comes as WazirX was under the radar of authorities in India.
In June, the Enforcement Directorate (ED) had issued a show-cause notice for violating the Foreign Exchange Management Act (FEMA), 1999, and asking WazirX to explain transactions worth Rs 2,790.74 crore ($382M). A decentralized exchange does not own the data. Only you and nobody can control your crypto, making it more difficult for regulators to stop decentralized exchanges because communities own them.
Decentralization brings us a new world of trustlessness. With the surge in cryptocurrencies, crypto exchanges play an essential role in the development of the blockchain industry. As the world of crypto develops, choosing the best centralized or decentralized exchange will entirely depend on you.