UniSwap Explained in Simpler Terms

UniSwap Explained in Simpler Terms

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For years, centralized exchanges have been the backbone of the cryptocurrency economy. They provide quick settlement times, large trade volumes, and ever-improving liquidity. However, a parallel universe is emerging in the form of trustless protocols. Trading on decentralized exchanges does not involve the use of middlemen or custodians.
Due to the inherent limits of blockchain technology, it has been difficult to create decentralized exchanges that compete meaningfully with their centralized counterparts. The majority of decentralized exchanges might improve in terms of both performance and user experience.
Many developers have been brainstorming different approaches to create a decentralized exchange. Uniswap is a pioneer in this field. The operation of Uniswap may be more difficult to grasp than that of a more typical decentralized exchange. However, we'll soon discover that this paradigm has several appealing advantages.

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