What is a DEX?
A decentralized exchange is built on the blockchain and allows for the peer-to-peer trading of tokens native to that blockchain. How this works is that the users simply connect their cryptocurrency wallets to the decentralized exchange to begin interacting with the smart contract on it. This process automatically matches, verifies and executes trades without the need of a third-party. Traditionally, DEXs have been built on the ethereum blockchain (Kyber, 0x Protocol, Airswap), however, this has recently extended to other blockchains such as EOS or NEO.
TWINS DEX, a futuristic approach
TWINS cryptocurrency, facilitated by New Capital will introduce a truly decentralized exchange platform and proof-of-stake blockchain network with cross-chain atomic-swaps capabilities to facilitate the direct transacting of value between network users. There will be no fees for the direct peer-to-peer exchanges, as these transactions are performed directly between user wallets. The TWINS cryptocurrency is plan to back the exchange platform for buy and sell order listings and to reward the community-supported and decentralized hosting of network nodes.
Essentially, TWINS will be an exchange market that does not rely on a third party service to hold the customer's funds. Instead, trades occur directly between users (peer to peer) through an automated process. This system can be achieved by creating proxy tokens (crypto assets that represent a certain fiat or cryptocurrency) or assets (that can represent shares in a company for example) or through a decentralized multi-signature escrow system, among other solutions that are currently being developed.
Liquidity and Payments
TWINS DEX will act as a liquidity provider for investors to directly tap into the network pools when managing their portfolios. The ability to swap assets with one click is an incredibly convenient function for fund managers to instantly trade or hedge their investments.
This revolutionary technology will no doubt play a key role in the adoption of cryptocurrencies. TWINS could be an answer to one of the most relevant problems at the moment, which is the infancy of decentralized technology and atomic swap is very much in their in its initial stages - DEXs are used by a niche audience and the technology behind them is still relatively nascent.
The most obvious benefit of TWINS protocol over a usual centralized one is their "trustless" nature. You are not required to trust the security or honesty of the exchange since the funds are held by you in your personal TWINS wallet and not by a third party. Another advantage to their decentralized model is the privacy it provides. Users are not required to disclose their personal details to anyone, except if the exchange method involves bank transfers, in which case your identity is revealed only to the person that is selling or buying from you.
Furthermore, the hosting of TWINS decentralized network is distributed through nodes meaning that there is no risk of server downtime or delayed payments.