4 ms·

For reference, Uniswap is a cryptocurrency exchange which uses a decentralized network protocol. The protocol facilitates automated transactions between cryptoc

For reference, Uniswap is a cryptocurrency exchange which uses a decentralized network protocol. The protocol facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts.

sureglymop 4y ago
Would you mind explaining that in even simpler terms?
- themihai 4y ago
  It's an exchange developed on Ethereum platform. Basically what FTX is but without a central authority. You may wonder why people don't use Uniswap instead of FTX, Binance etc. The answer is the same reason crypto payments failed: high transaction fees.
  - zeroclip 4y ago
    People do use Uniswap. It handles similar volume per day as Coinbase. Transaction fees are one reason. Speed and account UX is another. L2 development is on track to solve some of these problems.
- ailef 4y ago
  Uniswap lets you exchange your cryptocurrency for another one without any centralized architecture (it's not an exchange like Binance).
- edf13 4y ago
  It lets you swap token A for token B. The price is auto calculated based on reserves of A vs B…. Swap more of A for B and A becomes cheaper
- boppo1 4y ago
  Imagine you want to trade your gold for silver. You literally possess the physical gold. FTX/centralized exchange: deposit your gold, counterparty deposits silver. FTX possesses the physical quantities and gives you both receipts. You agree to you exchange rate and FTX issues new receipts for what you hold, old receipts are void. You can use the new receipt to withdraw your gold and silver[0]. Uniswap: You take the amount of gold you want to trade to a building. You get to the building and exchange your physical gold for physical silver directly. You leave with your physical silver. You spent a little gold on the way to afford gasoline for the trip. These are technically inaccurate but give an overall correct idea of the difference. [0]most crypto users don't understand how to possess their own crypto (control private keys) so they skip the last step and leave the 'gold/silver' (crypto) in the physical custody of the exchange.

sureglymop 4y ago

Would you mind explaining that in even simpler terms?

themihai 4y ago
It's an exchange developed on Ethereum platform. Basically what FTX is but without a central authority. You may wonder why people don't use Uniswap instead of FTX, Binance etc. The answer is the same reason crypto payments failed: high transaction fees.
- zeroclip 4y ago
  People do use Uniswap. It handles similar volume per day as Coinbase. Transaction fees are one reason. Speed and account UX is another. L2 development is on track to solve some of these problems.
ailef 4y ago
Uniswap lets you exchange your cryptocurrency for another one without any centralized architecture (it's not an exchange like Binance).
edf13 4y ago
It lets you swap token A for token B. The price is auto calculated based on reserves of A vs B…. Swap more of A for B and A becomes cheaper
boppo1 4y ago
Imagine you want to trade your gold for silver. You literally possess the physical gold. FTX/centralized exchange: deposit your gold, counterparty deposits silver. FTX possesses the physical quantities and gives you both receipts. You agree to you exchange rate and FTX issues new receipts for what you hold, old receipts are void. You can use the new receipt to withdraw your gold and silver[0]. Uniswap: You take the amount of gold you want to trade to a building. You get to the building and exchange your physical gold for physical silver directly. You leave with your physical silver. You spent a little gold on the way to afford gasoline for the trip. These are technically inaccurate but give an overall correct idea of the difference. [0]most crypto users don't understand how to possess their own crypto (control private keys) so they skip the last step and leave the 'gold/silver' (crypto) in the physical custody of the exchange.