How do trades take place?

To understand the upside to this system, we must first delve into how regular trades take place at present. First off, someone wishing to sell their cryptocurrency will input the amount they want to part with as well as the proceeds that they expect from the exchange. This sale order will then appear in the system and will get processed once a buyer comes into the market and finds the offer appealing. In some cases, a buyer may come in and lack what they wish to buy, and they will thus create their order, specifying what they would like and for how much.

As you can see, the waiting time can vary as there is a need for two matching orders for a transaction to get completed. Once two offers are in agreement, the third party processes the amounts and sends out the cash rewards to each party. The operations get thereby left in the company’s system, and the third party will have to await the completion of the transactions. This whole procedure could take up to a week to come to an end.

In the case of the decentralized system, buyers and sellers place their orders, much like the case with the first system. However, once matches come about, the system redirects the entire process to the parties, thus eliminating the need of an intermediary. As such, the process takes place in a faster manner and is economical to all parties involved. The only time that a third party comes into the scene is when there is a dispute, and there is a need for an agreement. Otherwise, the system can handle all the tasks on its own.