#CEXvsDEX101
By controlling the platform infrastructure, CEXs can match trades internally without requiring every transaction to be settled on the blockchain. A DEX relies on a blockchain network for every trade, which increases the time to settlement. Transaction speeds on DEXs may also be more variable
CEX: Centralized Exchanges (CEX) Binance, Coinbase, Kraken, and Huobi are examples of centralized exchanges that have their own order book. Every order is logged and approved in this order book. Data is shared internally via dedicated servers and goes through centralized security protocols to assure accuracy.
DEX
The most popular DEXs — like Uniswap and Sushiswap — utilize the Ethereum blockchain and are part of the growing suite of decentralized finance (DeFi) tools, which make a huge range of financial services available directly from a compatible crypto wallet.
