CEX (Centralized Exchange) is the abbreviation of centralized exchange. Unlike decentralized exchange (DEX), CEX runs on the server, and the data and assets are completely controlled by the server. All transactions are confirmed by the server, which is no different from traditional exchanges. The emergence of centralized exchanges is mainly to facilitate traditional institutions to enter the field of digital currency exchanges. Because of its strong performance stability and large scale, it is relatively quickly accepted by customers, so it is known as the "exchange" of virtual currency.

DEX (decentralized exchange) is a digital currency exchange based on blockchain technology. It uses decentralized smart contracts to execute transactions without the need for centralized third-party supervision and management.

Unlike CEX, DEX stores transaction records on the blockchain instead of being controlled by a centralized server. This means that transactions are open and transparent, and anyone can view and verify transaction records. In addition, DEX also has higher security and privacy because transaction data does not need to be stored and processed by a centralized server.

The advantages of DEX include:

  1. Security: Since transaction records are stored on the blockchain and verified and confirmed by decentralized nodes, DEX has higher security.

  2. Transparency: All transaction records are public and can be viewed and verified by anyone.

  3. Privacy: Since transaction records do not need to be stored and processed by centralized servers, DEX has higher privacy.

  4. Flexibility: DEX can be developed using different blockchain networks and smart contract languages, thus having greater flexibility.

However, DEX also has some challenges and limitations, such as transaction speed and scalability are not as good as CEX, and it requires more technical knowledge and experience to develop and maintain.

In short, DEX is a digital currency exchange based on blockchain technology, which has higher security and privacy, but also has some challenges and limitations.