Research Cell: An International Journal of Engineering Sciences

Open Access Open Access  Restricted Access Subscription Access

Breaking Down Decentralized Exchange


Affiliations
1 Research Scholar, SET, Sharda University, Gr. Noida, India
2 Professor, SET, Sharda University, Gr. Noida, India
 

This paper gives an in-depth analysis of the key elements and technologies that make up the Decentralized exchange (DEX) ecosystem. We examine the main characteristics that set DEXs apart from centralized exchanges, highlighting the advantages and difficulties of this cutting-edge paradigm. We also consider the merits and disadvantages of the various DEX model types, including automated market makers (AMMs) and order book-based exchanges. The study also analyses potential ways to reduce these vulnerabilities and covers the primary security and legal issues surrounding DEXs. We conclude by looking at the most recent developments in the DEX market, such as the growth of cross-chain interoperability and decentralized finance (Decentralized Finance) protocols.

Keywords

Decentralized Exchange, Centralized Exchanges, Decentralized Finance, Blockchain.
User
Notifications
Font Size

  • Chiu, J., & Koeppl, T. (2021). Decentralized Exchanges. Annual Review of Financial Economics, 13, 129-149..

  • Petersen, H., & Larsen, K. (2022). Decentralized Exchanges: A Systematic Literature Review. IEEE Access, 10, 3430-3455.

  • Pettit, N., & Gipp, B. (2021). Decentralized Exchanges: Current Status and Future Directions. In Proceedings of the 20th International Conference on Web Engineering (ICWE '21) (pp. 193-204). ACM.

  • Kang, M., Lee, J., Kim, K., & Kim, D. (2021). A Survey of Atomic Swaps: State-of-the-Art and Future Directions. IEEE Access, 9, 55092-55108.

  • Zohren, S., & Mahajan, A. (2021). Liquidity on Decentralized Exchanges. In Proceedings of the 18th International Conference on Principles of Distributed Systems (OPODIS '21) (pp. 47:1-47:8). Schloss Dagstuhl--Leibniz-Zentrum für Informatik.

  • Hoffman, D., & Mugavero, G. (2021). A Review of Decentralized Exchange Technology and User Experience. In Proceedings of the 2021 IEEE International Conference on Decentralized Applications and Infrastructures (DAPPS) (pp. 112-119).

  • Moeser, M., Böhme, R., & Breuker, D. (2018). An Empirical Analysis of Off-Chain Transaction Handling in Payment Channel Networks. In Proceedings of the 2018 ACM SIGSAC Conference on Computer and Communications Security (CCS '18) (pp. 935-950). ACM.

  • Jain, S., & Singh, A. (2022). Liquidity Provision Mechanisms in Decentralized Exchanges: A Review. In Proceedings of the 2022 IEEE International Conference on Blockchain and Cryptocurrency (ICBC) (pp. 134-139).

  • Böhme, R., Christin, N., Edelman, B., & Moore, T. (2015). Bitcoin: Economics, Technology, and Governance. Journal of Economic Perspectives, 29(2), 213-238.

  • Kshetri, N. (2021). Blockchain's roles in meeting key supply chain management objectives. International Journal of Information Management, 56, 102227.

  • Y. Chen, Y. Zhang, and W. Shi. (2021). "Decentralized exchange based on hybrid order book and automated market maker," in IEEE Access, vol. 9, pp. 13032-13040, doi: 10.1109/ACCESS.2021.3052272.

  • Z. Yang, C. Wu, and X. Chen. (2021). "A new trading mechanism for DeFi based on automated market maker," in IEEE Access, vol. 9, pp. 10748-10760, doi: 10.1109/ACCESS.2021.3050403.

  • A. Mondal and P. Kumar. (2021). "Impermanent loss and risk management for decentralized finance," in IEEE Access, vol. 9, pp. 18780-18790, doi: 10.1109/ACCESS.2021.3053475.

  • N. Sharma, S. Sharma, and R. Kumar. (2021). "A review of layer-2 scaling solutions for Ethereum blockchain," in IEEE Access, vol. 9, pp. 13615-13629, doi: 10.1109/ACCESS.2021.3055201.


Abstract Views: 112

PDF Views: 0




  • Breaking Down Decentralized Exchange

Abstract Views: 112  |  PDF Views: 0

Authors

Ashmit Singh
Research Scholar, SET, Sharda University, Gr. Noida, India
Vipul Sharma
Research Scholar, SET, Sharda University, Gr. Noida, India
Dr. Ganesh Gupta
Professor, SET, Sharda University, Gr. Noida, India

Abstract


This paper gives an in-depth analysis of the key elements and technologies that make up the Decentralized exchange (DEX) ecosystem. We examine the main characteristics that set DEXs apart from centralized exchanges, highlighting the advantages and difficulties of this cutting-edge paradigm. We also consider the merits and disadvantages of the various DEX model types, including automated market makers (AMMs) and order book-based exchanges. The study also analyses potential ways to reduce these vulnerabilities and covers the primary security and legal issues surrounding DEXs. We conclude by looking at the most recent developments in the DEX market, such as the growth of cross-chain interoperability and decentralized finance (Decentralized Finance) protocols.

Keywords


Decentralized Exchange, Centralized Exchanges, Decentralized Finance, Blockchain.

References