As traders prioritize more freedom in their daily operations, a White-label decentralized exchange serves the right purpose. It ensures that traders directly execute deals without the involvement of an intermediary. A peer-to-peer mechanism enables automation of the entire process. Distributed applications and ledger protocols govern the operations of a decentralized exchange. It nullifies the threats of hackers carrying out malicious activities.
Understanding the operational aspects of a White Label Decentralized Exchange
The popularity of decentralized exchanges soared after multiple incidents of hacking affected centralized exchanges. Since it operates based on a trustless mechanism and includes smart contracts, it ensures safety in transactions.
The following steps mentioned below illustrate the functioning of a White label Decentralized exchange
- A trader can request for either buying or selling as part of his operations. It would be submitted to a relayer that hosts an order book. The crypto that is being bought or sold would be fixed at a price, and a trading fee would be determined after consulting the makers and takers involved. All the bids would be placed by the traders using the relayer present on the exchange software.
- The party interested in buying or selling crypto would create a counter order by signing the order book. It helps in better asset management.
- The smart contract situated on the blockchain will execute the corresponding order transaction and transfer the crypto assets to the respective trader’s wallets. Both the buyer and the seller can retract the fund by using their personal keys.
Overall, there has been an enhancement in the trading experience due to the White label Decentralized exchange. There is no chance for a loss of crypto or any deficiency in service.
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The advantages offered by a White Label Decentralized Exchange
- Highly secure — Since third-parties have no role to play in the exchange, peer-to-peer transactions can be conducted easily and safely. Users will have complete control over their cryptos. They can handle their funds and data smoothly as they are allowed to transact directly between wallets and the exchange’s order book. In a centralized exchange, users would have to deposit their funds, which will be controlled by a third party.
- Better privacy for users — Utmost priority is given for protecting the confidentiality of the traders. Not much personal information is required to be shared during the sign-up process for becoming a member of a White label decentralized exchange.
- Safe from hacking threats — Since a distributed ledger is used, there are fewer chances of hacking, making the stealing of cryptos virtually impossible. Hence the level of risks involved gets reduced.
- No centralized server — The server that stores all the information and data about the exchange is not located in a single place but is spread all across the globe. Hence the data remains private as well as secure.
Areas of application for a White Label Decentralized Exchange
As decentralized exchanges continue to pip centralized exchanges due to faster operation and a higher level of safety, let us overview the different use-cases for a decentralized platform.
- Automatic swipe — The concept of atomic swaps where two parties can trade and exchange cryptocurrencies according to their choice can be executed by a White label decentralized exchange. It eliminates the necessity of an intermediary or a middleman.
- Asset trading — It facilitates an effective buying and selling of any kind of digital asset.
- Safeguards the personal data — The in-built smart contracts ensure that the buying and selling operations are carried out safely. The data of the interested parties who have signed the contract and participated in the buying and selling process will be kept private.
- Free from regulatory pressure — Centralized authorities have no right or power to control and monitor the functioning of a White label decentralized exchange. Governments of countries or states also cannot regulate the system. Hence there is no chance of banning a currency or imposition of any guidelines arbitrarily.
- Faster transaction processing — By removing the presence of intermediaries to authenticate each transaction, traders can execute the buying and selling operations at low costs.
Essential features needed in a White Label Decentralized Exchange
- Support for the leading cryptocurrencies and fiat currencies that are highly demanded in the market.
- Due adherence to the KYC (Know Your Customer) and AML (Anti Money Laundering) guidelines for preventing frauds and mismanagement of funds.
- An accurate matching engine for matching buyers and sellers orders quickly.
- A multi-signature enabled wallet that stores the coins or tokens of traders securely.
- A robust backend admin panel that monitors the daily operations and issues regular updates on user activity.
- Availability of sufficient liquidity by networking with the other leading exchanges in the market.
- Smooth settlement of transactions through the acceptance of multiple payment methods.
- Multi-layer security measures like two-factor authentication and end-to-end encryption.
- Presence of innovative options like atomic swapping and preferred trading.
While white-label decentralized exchanges are a welcome step to move forward in the industry, it offers a mix of scalability security, reliability, and high performance. There may be a complete switch from centralized to decentralized exchanges in the future. It is a key pillar of the futuristic blockchain system. It is not far from widespread mainstream adoption. The fast-paced digital business world needs the efficiency of white label decentralized exchanges urgently.
Hence, become a part of this revolutionary trend and outsmart your competitors by acquiring a white label decentralized exchange from a reliable cryptocurrency exchange software development company.