What is IDEX Token and How Does It Work

Lovata Andrean

What is IDEX Token and How Does It Work
What is IDEX Token and How Does It Work

Rancakmedia.com – In this article we will discuss what the IDEX token is and how it works. The cryptocurrency market increased significantly following the 2017 ICO bubble, from a market valuation of approximately $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 trading still takes place on controlled exchanges. In centralized exchanges, 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 cause users crypto 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 CEXs by supporting smart contract trading, eliminating third-party control over traders' money. But it 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 found a solution on the main Ethereum blockchain that provides speed without sacrificing 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. What is IDEX Token

The 2017 release was 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 is combined with on-chain settlement in IDEX 1.0 coins. The combination of off-grid trading and settlement architecture on this network provides the speed of centralization while maintaining the security features of decentralized exchanges.

Additionally, IDEX 1.0 has no custody, allowing traders to take control of the funds. IDEX Coin 2.0 also has the same combination of off-chain and on-chain settlement, 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 used the word more literally, resulting in a fully connected model where all orders immediately interacted with each other.

This strategy accomplishes decentralization but makes trading slow and expensive due to every process from placing an order to sending an order

changing or canceling orders incurs network fees and depends on the time the blockchain network processes the transaction. Below are the features of IDEX exchange.

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Lovata Andrean

Hi, I'm Lovata, I'm not Ai but I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends. Thanks