Rancakmedia.com – In this article, we will discuss what an IDEX token is and how it works. The cryptocurrency market increased significantly after the 2017 ICO bubble, from a market valuation of around $566 billion at the end of 2017 to $1.5 trillion in February 2021.
This shows that the development of cryptocurrency trading will support a strong infrastructure. Cryptocurrency exchange is the first question for this answer.
Even though most cryptocurrency assets are built on a decentralized architecture, most trades still take place on controlled exchanges. In a centralized exchange, users have to store their assets on the exchange.
While these exchanges have many advantages, such as speed, their background raises concerns about their dependability. Incidents that occur with centralized exchanges such as currency verification, Mt. Gox, BitGrail, NiceHash, Bitfinex and Youbit are causing crypto users to think twice about participating with them.
After the introduction of blockchain smart contracts with the release of Ethereum, decentralized exchanges (DEXs) tried to overcome the core weaknesses of CEX by supporting smart contract trading, removing third party control over traders' money. But that comes at the price of blockchain network speed and performance.
The network slows down when all trades are made in chain. So a group of cryptocurrency traders came up with a solution on the main Ethereum blockchain that provides speed without compromising DEX security. They call their solution IDEX.
What are IDEX Tokens?
A group of cryptocurrency traders founded the IDEX token in 2017 as a decentralized exchange based on Ethereum (DEX).
It promises to provide real-time cryptocurrency trading with support for limit and market orders, gas-free cancellations and the option to fill multiple transactions at once.
The 2017 release is the first IDEX 1.0 exchange version. The team published IDEX 2.0 in late 2019, which is currently accessible to users.
Off-chain matching and validation coupled with on-chain settlement in IDEX 1.0 coin. The combination of off-grid trading and settlement architecture on this network provides the speed of centralization while preserving the security features of a decentralized exchange.
In addition, IDEX 1.0 is non-custodial, allowing the trader to control the fund. IDEX Coin 2.0 also has the same combination of off-chain and on-chain settlements, but with significant additional features and scalability solutions. Let's see how this works?
How Does IDEX Crypto Currency Work?
Prior to the introduction of IDEX, traditional DEXs took the word more literally, resulting in a fully connected model where all orders immediately interacted with one another.
This strategy accomplishes decentralization but makes trading sluggish and expensive due to every process from placing an order to sending the order
changing or canceling an order incurs a network fee and is dependent on the time the blockchain network processes the transaction. Below are the features of the IDEX exchange.