Are you a cryptocurrency enthusiast, looking to know more about cryptocurrency exchange development? The article gives you a high-level overview of how cryptocurrency is revolutionizing the global trading space. Also, we will analyze the development aspects and benefits of a peer-to-peer cryptocurrency exchange. At Oodles, we provide a range of cryptocurrency exchange development services.
P2P crypto exchange is essentially the decentralized form of exchange, maintained and operated exclusively on a blockchain-powered software or platform. In usual scenarios, there is always intermediaries involved to execute transactions and trade. In a p2p exchange, no third-party or intermediaries oversee the transactions.
Rise of P2P Exchange
P2P exchange came into prevalence in 2014, when cryptocurrency faced setbacks in the form of scams. Due to which, many countries denied the use of cryptocurrencies. It gave rise to a new system that we today know as p2p cryptocurrency exchanges. It is quite contrary to the centralized way of exchanging money, where two companies or entities can directly exchange cryptocurrency.
Trading with a P2P exchange
As the types of trading got diversified, the methods of exchange too changed. Earlier, if someone needs to exchange cryptocurrencies, they used to post an order, containing the amount of and price of cryptocurrencies. A common ledger used to collect all such orders, and thus, got termed as an order book. Then, users would select an order suitable to their budget. The trading process used to begin as soon as the buying and selling order is matched. The entire process was (is) time-consuming, while it also involved intermediaries. Consequently, the p2p cryptocurrency exchange script came into the role and made the cryptocurrency exchange development process easier.
In a p2p exchange model, when users trade their cryptocurrencies, the trade settlement happens instantly. Although here the physical currency process remains in process, the trade settlement between users come to a closure. The p2p crypto trading software analyzes orders and connects people with similar interests. Further, they get into negotiation and complete the trade within themselves only. The trade does not get into the hands of any third party. However, for security purposes, they involve third-parties as arbitrators. P2P cryptocurrency trading software enables users to find orders quickly around the world.
Benefits of Peer-to-Peer Exchange
If you want to develop a p2p cryptocurrency exchange platform, knowing the benefits is crucial. The followings are a few significant benefits of developing and launching a p2p cryptocurrency exchange platform.
Also Read: Cryptocurrency Exchange Software: Everything You Need to Know About it