How Does a DEX Script Work?

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Ilona Sirena

A DEX script, or decentralized exchange script, operates on a blockchain and uses smart contracts to enable peer-to-peer cryptocurrency trading. These scripts automatically execute trades when specific conditions are met, allowing users to trade directly with one another without the need for a centralized authority. The smart contracts manage tasks like order matching and trade execution, ensuring transparency and security in transactions. Users retain control of their funds through their private keys, enhancing the trustless nature of decentralized exchanges. Overall, DEX scripts empower users to trade cryptocurrencies in a secure and automated manner on blockchain platforms like Ethereum or Binance Smart Chain.

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