In the world of cryptocurrency trading, decentralized exchanges (DEXs) have emerged in recent years as a viable alternative to centralized exchanges (CEXs). This is evident in the steadily growing transaction volume on DEXs, which reached $224 billion from April 2021 to April 2022, surpassing that of centralized exchanges that recorded $175 billion in the same period. This significant shift in the landscape is particularly noteworthy given that over 90% of cryptocurrency transactions were conducted on centralized exchanges in the first half of 2021, according to a Chainalysis report.
The increased popularity of decentralized exchanges can be attributed to their transparency, which is lacking in traditional exchanges. Additionally, users are increasingly wary of the lack of regulation and transparency in the industry, particularly in light of high-profile bankruptcies of centralized exchanges like Celsius and FTX.
While decentralized exchanges offer advantages in transparency and control, they still fall short of being a perfect alternative for users. One persistent problem is the “gas fees” associated with decentralized exchanges. Unlike centralized exchanges, decentralized exchanges operate on the blockchain, which means that gas fees are incurred for each transaction. For users accustomed to trading without gas fees on centralized exchanges, this can be a significant obstacle.
Even popular centralized exchanges such as Binance and Uniswap have been unable to solve this problem. Binance remains the top preference for cryptocurrency traders due to its convenient trading services, user-friendly interface, and diverse range of trading pairs. However, concerns have been raised about the transparency of customers’ assets. The complex KYC (Know Your Customer) process is also considered a significant drawback.
Looking at the popular decentralized exchange, Uniswap, it allows users to directly trade on the blockchain using their personal wallets without the need for a complex KYC process. However, each transaction incurs a gas fee, limiting the types of supported trading services and leading to lower overall liquidity compared to centralized exchanges. Furthermore, the user interface without an order book differs significantly from centralized exchanges, making it more difficult for existing centralized exchange users to navigate.
INNODEX: Providing the Best of Both Worlds in One Platform?
This is where INNODEX comes in. INNODEX operates like a traditional DEX, enabling users to store and trade their assets directly from their personal wallets without complicated KYC procedures. However, INNODEX’s key innovation lies in its ability to eliminate the high gas fees associated with each transaction on a DEX. Instead, a single gas fee is charged daily when the user’s wallet is synced with the blockchain, with no additional fees charged for subsequent trades.
Moreover, INNODEX offers a range of features that will be familiar to CEX users, such as a comprehensive order book and multiple order types including market orders. This makes it more accessible to users who are used to trading on centralized platforms, without sacrificing the benefits of decentralization.
With INNODEX leading the way, DEXs have come a long way in addressing the limitations of traditional exchanges while retaining the key advantages of blockchain technology. By offering a more user-friendly and cost-effective way to trade, they are poised to become the preferred platform for crypto traders around the world.
The INNODEX platform, powered by NvirWorld’s “Stay Pending” technology, could prove to be a game-changer in decentralized exchanges. It reduces gas fees for users and maximizes convenience, lowering the entry barrier for decentralized exchanges to secure abundant liquidity and provide a variety of trading services close to centralized exchanges. NvirWorld is also developing and providing various other patented technologies to commercialize blockchain technology.
Furthermore, NvirWorld has official partnerships with industry experts Solana and ConsenSys, and has launched the deflationary coin “NVIR,” which is gaining attention as having potential comparable to Ethereum as a blockchain project.