Development of DEX crypto exchange

DEX cryptocurrency exchange is a tool for trading digital assets in which all transactions are carried out using smart contracts, without the participation of any centralized trading system or third parties. In fact, DEX exchangers do not store funds and are designed to perform peer-to-peer transactions – transferring crypto directly between the wallets of users that they connect to the platform.

DEX has a number of significant advantages over centralized services. Let’s consider them in more detail:

• Simple and intuitive interface, without order books and different types of orders.
• Maximum anonymity – to work with DEX, verification and confirmation of identity are not required.

• Security – Since the DEX does not store assets, they cannot be frozen.
• Transparency of transactions.
• Minimum commissions.
• High speed of execution of operations.

It is also worth adding that with the advent of DeFi DEX on Ethereum, they have become very popular, and now the demand for decentralized exchangers continues to grow.

Blockchain networks are inherently much slower than their centralized counterparts. Therefore, when creating decentralized projects, additional applications are most often developed.

Thus, the DEX exchanger consists of two parts:

• Centralized – this can be a regular web or mobile application with a back-end that allows the user to conveniently interact with the system.
• Decentralized – it includes smart contracts that are placed on the blockchain network and are responsible for conducting transactions.

Accordingly, different technologies will be used to implement these solutions. The stack might look like this:

• Frontend – static HTML / CSS / JavaScript technologies or reactive – Vue.js / React.js.
• Backend – Python/PHP/Node.js, Django/Flask/Yii2/Laravel frameworks.
• Smart-contract – programming languages ​​Solidity / Rust and others.

Our team develops decentralized solutions using the Scrum methodology. In general, this process can be divided into six main stages. Let’s consider them in more detail.

Stage 1. Gathering information

First of all, the project manager holds meetings with client representatives to determine the goals, objectives and priorities of the new project.

Stage 2. Design and development of documentation

Design plays a crucial role in the development of decentralized solutions, since once placed on the blockchain network, smart contracts cannot be changed or edited.

Therefore, the team needs to create a carefully thought-out prototype, which will contain and describe the entire logic of the product.

The prototype performs several important functions:

• Allows you to find and test the best technical ideas.
• Minimizes risks.
• Saves budget and implementation time.
• Helps to evaluate the usability of the interface.
• Optimizes the development process.

Stage 3. UI design development

When creating a design, specialists superimpose graphics, illustrations and animations on warframes, select fonts and create a comfortable visual environment for the exchanger.

This is a very important stage, since most users prefer services with a convenient and pleasant interface and, moreover, consider them more reliable.

Stage 4. Programming

The development of the functional part of the exchanger includes several components:

• Frontend. Development of the client side, which includes layout, creation of animations, transitions and event handlers. In simple terms, the frontend provides a comfortable user interaction with the service.
• Backend. Implementation of the server part responsible for storing, transmitting and processing information. At this stage, programmers build database architectures, form the code structure and perform integrations of the exchanger with third-party products via API.
• Creation of smart contracts. Developers program smart contracts and put in them the logic for performing exchange transactions.

Stage 5. Testing

After the development is completed, the exchanger is transferred to the quality control department (QA), where it goes through several levels of testing. This allows you to make sure that all its functionality works correctly, and as it was intended.

Special test networks are used to test smart contracts. This is a very important step, because after being published on the blockchain, they will become immutable, and any improvements will simply be impossible.

Stage 6. Technical support and development

Despite the immutability of smart contracts, the exchanger itself can continue its development: its front-end and back-end parts can be refined and improved an unlimited number of times. Therefore, after the release, the project is transferred to technical support.

If over time the logic of financial transactions of the exchange also changes, our team will be able to create and publish a new version of the smart contract. At the same time, you need to understand that the old one will remain in the blockchain, and if desired, users will be able to continue using it.

Decentralized solutions are in high demand in the market because they give users more freedom and maximum anonymity. Therefore, investing in a DEX cryptocurrency exchanger will be quite reasonable and will most likely pay off.

The AVADA MEDIA team has extensive experience in blockchain development: exchangers, crypto wallets and large decentralized exchanges. Through teamwork and meticulous design, we bring to market functional and efficient products that solve our customers’ business challenges.