#CEXvsDEX101 To understand the types of providers that exist in the DeFi world, we will analyze the two main models of interaction with the blockchain based on the responsibilities, risks, and functionalities of each one.

This measure makes DEXs safer and more transparent. In this way, users of the exchange maintain control of their assets at all times, adding a high level of security, privacy, and even anonymity. Also for this reason, the end user assumes responsibility for their use, management, and custody.

Anonymity vs KYC

DEXs do not require KYC to enter them, which implies greater anonymity and less control over the operations carried out between users.

Cybersecurity

Also, in principle, they are safer than CEXs because at the center is a smart contract and they are distributed through a network of interconnected computers, creating a mesh very similar to that of a blockchain.

However, over the years they have also suffered some problems that have resulted in the loss of funds for users, such as the notorious case of The DAO, whose pillar smart contract contained an error that allowed cybercriminals to access it to withdraw funds.