What is Decentralized Exchange?

What is DEX?

A decentralized exchange, Build decentralized apps (better known as a DEX) is a peer-to-peer market where transactions occur directly between cryptocurrency traders. DEXs fulfill one of the main possibilities of cryptocurrencies: Promote financial transactions that are not officiated by banks, brokers, payment processors or any other type of intermediary. The most popular DEXs, such as Uniswap and Sushiswap, use the Ethereum blockchain and are part of the growing decentralized finance (DeFi) toolkit.

Decentralized exchanges make a wide range of financial services available directly from a compatible crypto wallet. DEXes are booming: In the first quarter of 2021, $217 billion in transactions flowed through decentralized exchanges.

As of April 2021, there were more than two million DeFi traders, a tenfold increase from May 2020.

A decentralized exchange (or DEX) is a peer-to-peer market where transactions occur directly between cryptocurrency traders.

DEXs fulfill one of the main possibilities of cryptocurrencies: to encourage financial transactions that are not officiated by banks, brokers or any other intermediary.

There are many popular DEXs such as Uniswap and Sushiwap that run on the Ethereum blockchain.

What is the ERC721?

ERC721 is first and foremost a type of standard, and a standard is simply a template or format that other developers agree to follow. These standards are entirely voluntary, but following a widely used standard implies compatibility with a wide variety of applications, including exchanges , dapps , and wallets .

ERC721 is a standard for non-fungible tokens (NFTs) on the Ethereum network . Fungible means exchangeable and replaceable, so something like Bitcoin is fungible because any Bitcoin can replace another Bitcoin. One NFT cannot replace another.

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