A decentralized exchange (DEX) is a cryptocurrency exchange that operates on a decentralized network of nodes, rather than being hosted on a single centralized server. In a DEX, trades are conducted through smart contracts on a blockchain, ensuring that parties can trade cryptocurrencies without intermediaries. Instead of trusting a centralized intermediary with their funds, users hold their cryptocurrencies in a private wallet and retain complete control over their assets. DEXs are often touted for their potential to promote decentralization, security, and censorship resistance in the cryptocurrency space.
