Not only is Waves’ built-in exchange a secure peer-to-peer marketplace for all Waves tokens, but it compares favourably in terms of speed and user experience to the top centralised exchanges!
One of the core elements of the Waves platform is its decentralised exchange (DEX): a peer-to-peer engine that allows users to trade Waves assets against each other quickly and securely, with low fees and no middlemen.
A number of decentralised exchanges already exist on different platforms, including Ethereum and Nxt, but they tend to suffer from various problems. They are typically slow, due to the requirement to wait for the next block before orders are settled — something that also leaves users open to missed trades and front-running. And the user interface on some of them is — not to put too fine a point on it — abysmal. If DEXs are going to become the future of cryptocurrency trading, there are some major issues to fix. That’s exactly what Waves has done.
Waves’ peer-to-peer exchange offers a unique combination of features:
- The speed of a centralised exchange
- The ultimate security of blockchain
- Professional trading interface
- Gateways for fiat trading pairs
- Ultra-low fees
The Waves DEX combines the security of peer-to-peer technology with the speed of centralised systems. Traders’ orders are paired by centralised Matcher nodes almost instantly, but settlement occurs on the blockchain. That means trades are processed in a matter of seconds or less, but there is no risk of loss of funds because the blockchain is always the final arbiter of ownership. It’s a smart system that leverages the best of both worlds without unnecessary compromise. Along with Waves-NG, this allows bots and high-frequency traders to operate on the exchange, just as they do on other crypto trading platforms.
Orders are encrypted before they are sent to the matcher nodes, giving users a degree of privacy that is not available on other decentralised exchanges. And the fees are minimal: just 0.003 WAVES for a completed trade, far less than the commission on regular exchanges.
The centre area of the screen contains the most impressive feature of the DEX’s interface: a candlestick chart with adjustable scale and volume bars, with depth chart and mid-spread price beneath. These are further complemented by a broad range of trading tools that can be toggled and customised to provide a wealth of trading signals and market information, from simple moving averages to more advanced indicators. Night mode and price alerts are also available. This complexity does not present a barrier to ordinary users, though, since a simplified interface allows instant purchases and sells for those who just want to make a quick trade.
Gateways and atomic swaps incoming
Lastly, most DEXs focus on a single blockchain, exchanging tokens hosted on the same platform. The Waves client includes gateways for popular fiat and cryptocurrencies, meaning that these tokens can be traded on the DEX before profits are withdrawn back to external wallets and bank accounts.
Later in 2018, the first implementation of atomic swaps will be launched. This will enable, for the first time, true cross-blockchain trading on a fully peer-to-peer level. Ride on Waves!