A large share of cryptocurrency trading takes place on a centralized exchange such as
Binance and Coinbase. Such platforms are governed by a single authority, the company
that operates the exchange. In a centralized exchange, users’ funds are placed under the
control of the central authority. They use a traditional order book system to facilitate trading.
In this trading, buy and sell orders are listed along with the total amount for each order. The
amount of open buy and sell for an asset at any time is known as a “market depth.” To
complete a trade on a centralized exchange, a buy order must be matched with a sell order
(with the same amount and price) on the opposite side of the book.
For example, if you were to sell one bitcoin at $54,000 on a centralized exchange, you will
have to wait for a buyer who is looking to buy the equal or higher amount of bitcoin at the
same price, to appear on the other side of the order book. The biggest challenge with such
a system is liquidity — the depth and number of orders available on the order book at any
given time. Low liquidity will mean traders may not be able to fill their trade orders, or they
will have to wait longer to buy or sell orders.
What is Meduse.io?
Meduse is a completely different type of exchange from the centralized ones. It is fully
decentralized meaning there is no single entity that owns and operates it. As a P2P
exchange, Meduse is designed to support peer-to-peer transactions, which allows the users
to share computer connections without the need for a central server.
With this platform, users can share workload or resources from computer to computer
hence exchanges happen freely. Additional verification is also not required on this platform.
The peer-to-peer model ensures that there are fewer single points of failure and no privacy
The decentralized nature of Meduse also means users maintain control of their funds all the
time. This model is different from that of centralized exchanges that require traders t