Crypto Glossary

Posted on September 13, 2021 in
Glossary

Decentralized

The decentralized feature of cryptocurrency is one of the key features that add to the integrity of the market, making it trustworthy. When something is decentralized, it means that it is not governed and authorized by one single entity, but rather by the users themselves.

Decentralization

Decentralization

In the cryptocurrency landscape, decentralization is quite decisive, meaning that the system is either decentralized or the other way round. However, this may not always be the case. We can consider decentralization as a wide range of things and many attributes of a single cryptocurrency network can be categorized into different parts of the range.

DEX

A decentralized cryptocurrency exchange is often referred to as DEx. In this system, there is no third party or entity that traders can rely on. This offers versatility and independence to all users on the system, making it very convenient and seamless to complete transactions. All activities are transparent and will be kept secure on the blockchain.

Example of decentralized cryptocurrency trading

In the cryptocurrency decentralized system, you can take your assets (BTC, ETH, etc.)to a virtual gate that will keep records of the activities and provide you with proxy tokens in place of your existing assets. The given tokens can now be used to complete transactions within the blockchain of the exchange system. The actual cryptocurrency that lies within the aforementioned gate can now collateralize your tokens.

What you do next in the system is your own free will. You can sell or trade your existing tokens with others freely on the system. All records are kept secure on the blockchain. Cryptocurrency can be acquired when you receive tokens from a transaction and wish to convert them.

Perks of being a decentralized system

In contrast to the more common centralized system, the decentralized system offers a lot more freedom and control to its users while at the same time assuring them with a security system that is pretty much impossible to hack. Another advantage is that decentralized systems often charge very tiny amounts of transaction fees. It is not completely free.

Related Articles

What is Decentralized Finance (DeFi)?

July 05, 2022

What is Decentralized Finance (DeFi)?

Decentralized Finance (DeFi) is the new digital financial system without any intermediaries to process transactions. Learn about DeFi here.

Distributed VS Decentralized Blockchain Systems

December 01, 2020

Distributed VS Decentralized Blockchain Systems

What’s the difference between distributed and decentralized blockchain systems? In this article, we’ll explain distributed vs decentralized

We offer investors a variety of opportunities in the digital assets industry. Our innovative platform provides financial access for anyone seeking investment returns anywhere, anytime. Our ecosystem aims at making finance an everyday enriching activity.

ZEI is currently registered under and listed by Bappebti as a candidate merchant. To date, the Indonesian government has established crypto assets as commodities which can be determined as the subjects of futures contracts, which can be traded through the Futures Exchange (of crypto assets).

RISK WARNING ON THE SERVICES

Before you use the Services, you must be aware of the following:

  1. You should not transact Digital Assets if you are not familiar with Digital Assets. Transacting Digital Assets may not be suitable for you if you are not familiar with the technology of the Services that are provided.
  2. You should be aware that the value of Digital Assets may fluctuate greatly. You should buy Digital Assets only if you are prepared to accept the risk of losing all of the money you put into such Digital Assets.
  3. You should be aware that although we strive to provide you with excellent service, we do not guarantee that the Site or Services will be available without interruption.
  4. Digital Assets held in your Hosted Wallet and funds in your Fiat Wallet are not subject to the Indonesian insurance or guarantee scheme as provided by the Indonesian Deposit Insurance Corporation (Lembaga Penjamin Simpanan).