Decentralized exchanges with servers (DEX) are a hot topic in the cryptocurrency world. They represent a new financial system that enables peer-to-peer transactions without the intervention of middlemen. As blockchain technology becomes more mature and developed, DEX plays an increasingly important role in cryptocurrency trading. So, are decentralized exchanges with servers really the future? Let's unveil this question together.

Before exploring the future of decentralized exchanges with servers, we need to understand the core concept of DEX. DEX is a platform built on blockchain technology where users can trade cryptocurrencies directly without going through a centralized exchange. This means that users can trade more securely and quickly while maintaining control of their assets. This decentralized nature makes DEX popular and considered a strong competitor to traditional centralized exchanges.

However, although decentralized exchanges with servers are very attractive in concept, there are still some challenges in actual operation. First, due to the limitations of blockchain technology, the transaction speed of DEX is relatively slow and cannot be compared with traditional exchanges. This may affect the user experience, especially in the case of high-frequency trading. Secondly, due to the lack of supervision and protection measures of centralized exchanges, DEX is easy to become the target of hackers, and the security of user assets faces certain risks. These problems have restricted the development of decentralized exchanges with servers.

However, just like the two sides of a coin, decentralized exchanges with servers also have their unique advantages and development prospects. First, the decentralized nature of DEX protects it from government intervention and censorship, protecting the privacy and asset security of users. This is very important for many cryptocurrency enthusiasts. Secondly, with the continuous innovation and advancement of blockchain technology, the transaction speed and performance of DEX are also constantly improving, and it is expected to achieve a level comparable to that of centralized exchanges in the future. Most importantly, decentralized exchanges with servers represent the trend of innovation and decentralization of the financial system, which is in line with the pursuit of financial freedom and fairness in today's society.

In the future, with the continuous development and improvement of blockchain technology, decentralized exchanges with servers are expected to become the mainstream form of cryptocurrency trading. Although there are still some technical and security obstacles, these problems will gradually be resolved as the industry continues to evolve and improve. Decentralized exchanges with servers represent a new financial model that will bring users a more secure, transparent and efficient trading experience, and drive the entire cryptocurrency industry towards a more open and inclusive future.

In summary, decentralized exchanges with servers are a force that cannot be ignored in the cryptocurrency world. They have revolutionary potential and are expected to reshape the financial industry. Although there are still some challenges and obstacles, with the advancement of technology and social recognition, the future of decentralized exchanges with servers will definitely be better. Let us wait and see and witness the flourishing of this emerging form of finance!

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Public blockchains have the potential to become a powerful balancing force in the world by democratizing access to financial services in the same way that the internet democratized access to information. Decentralized trading technology will play a key role in accelerating our transition to a financial system where people can trade directly on a peer-to-peer basis without the need for middlemen. To understand how decentralized exchanges work, we must first understand what blockchains are and how they work on a conceptual level. Many investors may not know whether decentralized exchanges have servers yet? Let the editor of Coin Circle introduce it to you. 

 Does decentralized exchange have a server?

Decentralized exchanges put asset custody, matching transactions, and asset liquidation on the blockchain through open source smart contracts, without servers. Decentralized exchanges are an important part of decentralized finance (DeFi). Compared with centralized finance CeFi, DeFi has a high threshold for use, but has less moral risk, technical risk, and regulatory risk.

In exchanges, trading liquidity is crucial. More liquidity can provide users with a better experience, allowing users' orders to be responded to and traded in a short time, and market makers profit from trading by providing liquidity.

In a decentralized exchange, the real holder of digital assets is the user himself, who has absolute ownership and control over his assets. He will not lose his assets due to theft in the exchange, which ensures the security of digital assets.

To be precise, blockchain is a technical model, a secure and immutable digital ledger. Blockchain can retain almost all valuable information, but it cannot replace the server. The server is a tangible hardware resource, and the two must have combined applications.

For example, the combination of storage-type servers and blockchain makes information security even less of a worry. With the development of the Internet, a large amount of data is stored in storage servers, and data security is a concern for everyone. Blockchain technology uses cryptography to ensure the security of data transmission and access. In the process of data extraction, it can realize the centralized use of unstructured data required for various studies, making storage server data more secure.

 Principles of decentralized exchanges

As a means of trading cryptocurrencies that exist on different blockchains (such as Bitcoin and Litecoin), cross-chain atomic swaps are being actively developed. Figure 4 provides a visual representation of cross-chain atomic swaps and how they work conceptually. The transaction process is divided into four transactions. In transactions 1 and 2, the two parties interested in transacting coordinate with each other to lock their respective assets in trustless escrow using something called a hashed time-lock contract. In order to redeem the proceeds of one leg of the transaction (transaction 3), the redeemer must reveal a secret that allows their counterparty to redeem the proceeds for the other leg of the transaction (transaction 4). Either both legs of the transaction complete successfully or neither succeeds.

Cross-chain atomic swaps have only recently become feasible for the largest cryptocurrency networks. The first BTC/LTC (testnet) and BTC/DCR swaps occurred in 2017, but were subsequently adopted by few due to their cost, high latency, and technical complexity. Additionally, differences in the way blockchains are designed result in limited compatibility for people who may trade between existing cryptocurrencies. For these reasons, cross-chain atomic swaps are most feasible for large, infrequent transactions between complex parties trading specific cryptocurrency pairs. To learn more about cross-chain atomic swap transactions, here is a good reference.

The content above is the specific explanation of the question of whether decentralized exchanges have servers. Over the past 2 years, the Ethereum blockchain has become the de facto digital asset issuance platform. Ethereum's ledger not only tracks users' Ether (ETH) balances, but can also store and execute small programs called smart contracts. Smart contracts can own, keep, manipulate and/or become digital assets, depending on what they are programmed to do. Today there are over 115,000 tokens on the Ethereum blockchain, and that number is increasing rapidly. While tokens have been primarily used as a fundraising mechanism for initial coin offerings to date, there are many innovative use cases for tokens.