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DEX to Propel DApp in 2019?

DEX to Propel DApp in 2019?

According to David Lu of 256 Ventures, a decentralized exchange (DEX) can revive decentralized applications. By giving uses cases, Lu explains the DEX, though in its infancy, offers convenience and seamless user experience. Through it, they can attain total control of their own funds.

In a CoinDesk contributing article, Lu begins his case by stating in the past decentralized applications necessitate an exercise of centralized governance. But as technology moves onward, DApps can now operate decentralized, with gambling DApps procuring the most data usage. Ethereum and EOS are two protocols where a majority of decentralized applications are built.

DEX Explained

Built on the blockchain, a DEX is a type of DApp. It is a peer-to-peer medium for trading a blockchain’s native token. Creating an account or having an outside party is not required when using a decentralized exchange. To begin using, one can link a cryptocurrency wallet with a DEX to connect with its smart contract. Matching, verifying, and accomplishing trades are then done automatic, without the need for a third player.

Ethereum is a platform where decentralized exchanges are originally built. But now DEX is starting to be empowered on top of EOS and NEO.

Two Use Cases

A DEX can be used to facilitate liquidity and payments. Lu gives examples such as Melonport and Etheremon.

Melonport connects with 0x, Kyber Network, and OasisDEX. All three are decentralized exchanges. Melonport is working on building a decentralized asset management tool with the front-end functioning on IPFS and the back-end on Ethereum smart contracts. Fund managers can draw on the DEX’s liquidity pools and with a click crypto assets can be traded. Lu states that this is one case in point of leveraging liquidity that a DEX offers.

Another example given is the blockchain game, Etheremon, which is among the first to integrate with Kyber Network. Lu states that a DEX can simplify the payment process for gamers, and employing a single step will enable them to pay with ERC-20 tokens.

To end his article, Lu writes a decentralized exchange offers an option now available to users. An option giving owners the capability to have full autonomy on their funds using non-custodial wallets; a first in history.

Image credit: Unsplash

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