Chainanalysis published a report saying that the number of decentralized exchanges(DEX) is growing faster than “any other type of cryptocurrency exchange.” The DEXs has doubled to around 205 from Q1 2019 to Q3 2021 while the still popular CEXs has only risen 20% to 120. 

Everyone in the circle senses that DEXs have gained a lot of popularity in recent years. The respective 24H trade volume on top three DEXs, Uniswap, dYdX and PancakeSwap are comparable to the prominent CEXs, such as FTX, Coinbase and Kraken. 

We know that CEXs and DEXs take different approaches to buying and selling digital assets. However, they do share a lot of similarities. Both of them offer order books (AMM for DEXs), a trading venue, a matching system and security functions. 

A DEX works as a dApp on a blockchain though and users don’t rely on intermediary organization. The orders solely depend on self-executing smart contracts. DEXs are under a non-custodial framework which means users need to take care of their wallets and private keys themselves. It sounds pretty risky but there are multiple reasons behind the DeFi frenzy. 

The concept of a DAO challenges the traditional norms and revolutionizes our ways of life. It is still in early development but more and more DAOs have been founded with various purposes. Before you jump to comment on DAOs future workabilities, you’d better know how many kinds are there for now.