Server sync... Block time in database: 1615391772, server time: 1669575053, offset: 54183281

Let's talk about classical finance, centralized cryptocurrency exchanges, decentralized cryptocurrency exchanges.

Greetings to all readers of this great platform, in this opportunity I want to continue with the themes related to the platforms DeFi, I want to give a little explanation to know how to differentiate the different economies, such as finance classic, the Exchange, centralized Exchange and decentralized, to understand their differences, it is necessary to know a little bit about how it works each of these economies, for which we will develop below.

Screenshot taken at: PixaBay

Let's talk about classical finance:

To make clearer concepts for readers, I will develop each of the concepts with my own knowledge, starting with classical or traditional finance, being those finances that use physical money to save our resources, which are stored in banks for the safety of money, but ends up being a big problem mainly due to the difficulty of withdrawing those resources.

Mainly a large amount of paleo must be done to be able to withdraw our resources, and much more so when they are large amounts of money, on the other hand, this economy is centralized and when governments or entities themselves want to block the resources of those people, it has the power to do it, attacking the personal economy.

Let's talk about Centralized cryptocurrency exchanges:

In the cryptocurrency Exchanges there is also a centralized economy, because there is a platform where only the owners are completely in charge of the Exchange and for which they are in charge of 100% of the operations that are carried out on these exchange platforms, also the biggest problem is that we do not have the keys as such of our accounts, and we have to place all our trust in the owners of the Exchange, despite this there is Exchange with a lot of trust like Binance, being the main centralized Exchange that is used in the Blockchain.

Let's talk about decentralized cryptocurrency exchanges:

Known by the acronym DEX, are those Exchange that are not controlled by anyone, being a type of Exchange that does not have personal information of the users, since its main function is to be a trade route for the users, who can send their resources in this way, achieving execute each of the commands that are carried out without knowing the owners of the same.

As you can see, there are many differences between the 3 types of economies that exist, we can also take into account that each of the perspectives can be evaluated, so I invite you to do research about each of them, and take into consideration the application of them.

All the images used by the Author @Chucho27 are Public Domain, in each one of them you can find the source of the image.
The image of the Banner at the bottom, is in the public domain obtained from: PixaBay

Comments 8