Building a crypto exchange involves a complex decision between centralized and decentralized models. Centralized exchanges (CEXs) require significant technical infrastructure and present considerable security risks due to the direct management of user funds. They allow for better user experience and trading features but hold vulnerabilities. Decentralized exchanges (DEXs) operate on smart contracts and donât handle user funds directly, simplifying some risks but requiring in-depth knowledge of blockchain technology. Thus, the choice is not simply ideological but rooted in practical business and operational considerations.
Centralized exchanges are technically intensive, involving full control over the stack, but they present significant security vulnerabilities if not managed properly.
In decentralized exchanges, you aren't holding user funds, which can simplify certain aspects, but it also requires an extensive understanding of smart contracts.
#crypto-exchange #centralized-vs-decentralized #blockchain-technology #security #business-operations
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