This is a chapter from the Token Economy book series. All subchapters are collapsed under their subchapter headings to make the page more readable. Find copyright information on this text and about the book an the end of the page.
Token exchanges offer a marketplace where buyers and sellers of tokens can meet and exchange one token type for another. While they are important players in this new token economy, they are still predominantly operated by centralized institutions, which makes them vulnerable to hacks, mismanagement, or censorship. Decentralized exchanges try to mitigate these risks by using public blockchain networks as their execution layer. They have introduced novel forms of technical swapping mechanisms as well as new market mechanisms.
‣
Intro
‣
History of Exchanges – The Wild West Times
‣
Centralized Exchanges (CEX)
‣
Decentralized Exchanges (DEXs) aka Automated Market Makers (AMMs)
‣
Challenges of Decentralized Exchanges
‣
The Interoperability Challenge
‣
NFT Marketplaces
‣
Chapter Summary
‣
Footnotes
‣
References & Further Reading
This is an excerpt from the book “Token Economy: Money, NFTs & DeFi”
RIGHTS
Copyleft 2023, Shermin Voshmgir
Creative Commons CC-BY-NC-SAÂ
NON-COMMERCIAL USE
This license only allows reusers to distribute, remix, adapt, and build upon the material in any medium or format for noncommercial purposes only, so long as attribution is given to the creator. If you remix, adapt, or build upon the material, you must license the modified material under identical terms.
COMMERCIAL USE
For commercial use contact:Â hello@token.kitchen
BibTeX
@book{title={Token Economy: Money, NFTs & DeFi}, author={Voshmgir, Shermin}, year={2023}, publisher={Token Kitchen} }