Normally, we spell using some platform or application to perform certain cryptocurrencies transactions on the network. These transactions are linked to trade and may be centralized or decentralised. At this point, a gap opens between DEX and CEX. However, we will focus exclusively on decentralized exchanges to give a little the importance of the utility of open source within the DEX.
What is a DEX?
A DEX is a decentralized exchange that works under intelligent contracts, these at the same time work in a blockchain that allows transactions in relation to purchase and sale without intermediaries or third parties.
Currently, several users have started to interact to a greater extent with decentralized exchanges, as they can offer greater benefits by fulfilling the various needs that arise in the level that the blockchain ecosystem will expand. The use of a DEX, in turn, implies a lower amount of liquidity on the market, and even a higher transaction rate; although the latter has been varying in relation to the updates some networks suffer and even improvements in the DEX system.The big difference
The difference of the CEX, i.e. the centralized exchanges, is that they need a mediator or intermediary, these can be a broker, company, bank that ultimately governs in the transaction. Furthermore, that in a CEX can be marketed both in fiduciary currency and in cryptocurrencies, that is, it has both modalities.
It should be noted that centralized exchanges are usually the most common for users who just start in the world of cryptocurrencies, the use of them could assume an easier and more understanding process. However, they are also the most complex in the field of security, since they maintain custody, that is, they have full control of assets; and in any event, they may block or close the trade of transactions, which has already been presented on several occasions.Open source
Now, when speaking of open source or open-source, we refer directly to a type of coded software. With this code computed instructions are generated and certain tasks are scheduled. In other words, it is a free software, that is, accessible to everyone so they can view the entire source of it and even make some modifications. Open source guarantees and a number of benefits for developers.
Open source DEX
An open source DEX, then, is an application that allows you to perform transactions without the need for third-party participation through smart contracts, but with the big difference that your processing code, i.e. your source code, is free. Everyone can have access and see how the data is executed.However, the creation of a functional DEX can be quite complex, largely must have a dedicated and reliable work team, in addition to capitalizing on a solid approach to product creation, to finally satisfy users in an environment of constant changes. But if all of this adds the advantages of opening the source code, increase capacities at different levels of integrity.Advantages
Transparency
An open-source DEX gives access to anyone to review and investigate the central code in the search for possible errors, security exposures and weaknesses in the procedure. All this makes sense for greater confidence and transparency in trade and trade.Security
All users can see the source, while being free, one can generalize the trust that DEX is created to safeguard the identity of users and be widely secure. Fund custody is totally refused to a third party, users have their own control. Moreover, it is relatively easier to verify some vulnerabilities; this implies a constant renewal of the quality of the code.Flexibilization
By being an open layer, users can detect aspects that could be customizable in relation to optimization and comfort. The needs that determine users will be those that will be executed within the customization mold.Innovation
If the source code is fully open, developers can update and generate new projects and applications that adhere to DEX. This could stimulate the advancement of new technologies and mechanisms within the crypto environment.Community
Normally, decentralized exchanges have a wide community that captures multiple common developers and users. Even so, a DEX is supported by a dizzying community, so any collective concern will have value to meet the needs that users highlight. Once they are the ones that use the product/service.Some examples
Uniswap
A popular open source DEX is the big unicorn, Uniswap. It works identically as exchanges do, i.e., one can make a quick and simple exchange of one cryptocurrency/token to another, all this decentralized through the Ethereum network with ERC-20 tokens, which has a very wide ecosystem, which gives you a great potential. However, when it is limited to this network, it also has this great disadvantage at the level of functionality.Currently Uniswap V3 is free, which gives developers space in creating new and sophisticated DEX through the very code of the popular Uniswap. Previously, there was a type of license, respectively Business Source License (BSL), which limited the use of the code, at least until it fulfilled an established period of time. However, this period has been fulfilled, so the DeFi community can benefit from the bifurcations that arise through the unicorn of decentralized finances.
KomodoWallet
KomodoWallet It is a fully custody-free portfolio of multiple currencies and based on DEX atomic swaps (decentralized). KomodoWallet users keep their coins in their own wallets and perform cross-chain swaps while controlling their private keys. It is a DEX that supports hundreds of thousands of cryptoactives from dozens of blockchains.
One step at the same time
Komodo Wallet is a product DEX Komodo Platform and recently released their code. Now it has become one of the few mobile crypto wallets on the market that are 100% open source.The purpose of Komodo as open source technology supplier blockchain It is to create technologies that anyone can use to increase their car-sovereignty and personal freedom. By publicly opening KomodoWallet Mobile, a new standard is established within the industry.
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