The company OKHOTNIKOV, represented by its CEO and founder Vladimir Okhotnikov, offers its analysis of the advantages and disadvantages of decentralized exchanges (DEXs). The principles of operation of DeFi systems built on smart contract algorithms are considered. The prospects for merging DEXs and metaverses are touched upon.
In a number of interviews, published on the pages of various online publications, Vladimir Okhotnikov and specialists from his company have already discussed the topic of decentralization in the blockchain. They explained what it is, highlighting the key features of the DeFi idea using specific examples.
Speaking about such giants of the cryptocurrency industry as Binance, Coinbase, Kraken or FTX, Okhotnikov points out that these exchanges are strictly centralized structures where decisions are made by top managers, not the community. According to the expert, this management principle leads to abuses and gross management miscalculations.
“Decentralization is the natural operating mechanism of cryptocurrency exchanges. Technologically, we can almost get rid of the “human factor” and the errors associated with it. This is a difficult task, but it is quite feasible,” the company’s experts believe.
Using clear examples, Vladimir explains the principles of DEX operation, as well as the algorithm for P2P transactions through smart contracts. Among other things, the expert touches on such interesting topics as automated market maker (АММ) — a special algorithm for operational control of liquidity and determination of the price of cryptocurrency. It is shown how the AMM mechanism is related to the formation of a liquidity pool and what significance all this has for carrying out transactions on DEX.
Speaking of functional differences between CEX and DEX, Okhotnikov elaborates on the advantages and disadvantages of decentralized exchanges, comparing them with centralized ones. The comparison is carried out based on such important indicators as transaction security, fees, confidentiality, reliability, transparency and support for bridges between different blockchains.
The disadvantages of DEXs are also not ignored. The problems associated with an exchange of cryptocurrencies into fiat, a complex interface, legal uncertainty and a number of other difficulties that users of decentralized exchanges may encounter are discussed in detail.
The important topic of the upcoming integration of DeFi technologies into the blockchain of metaverses is touched upon - global ecosystems populated by digital avatars of users and combining a wide variety of functions. Vladimir believes that DEXs will be the first to be able to implement such integration:
“...The Metaverse is a unique space that needs to be mastered. You can build everything there: shops, offices, transport and, of course, stock exchanges. DEX is technologically optimal for the metaverse format.”
You will learn about the potential of DEXs, the prospects of the DeFi, the legal regulation of cryptocurrencies, future trends in the world of metaverses and much more in a series of articles with the assistance of Vladimir and on the official website of the OKHOTNIKOV company.
About the company
The company OKHOTNIKOV is one of the recognized leaders in the field of financial analytics, consulting, artificial intelligence and blockchain development. Among the services provided by this company: assessment of the prospects of startup projects, analysis of market trends, as well as assistance in the construction and development of blockchain projects.
Vladimir Okhotnikov’s Press Center
https://vladimirokhotnikov.com/
Floralia, LLC
Phone: +7(771)317-20-55
Address: Kazakhstan, 041609, Almaty region, Talgarsky district, Besagasky rural district, Besagash village, Rayymbek Batyr st, 285