PANCAKESWAP: A case study in exchange for decentralized (DEX)
In the cryptocurrency world, Decentralized Exchanges (DEX) appeared as a revolutionary platform for negotiating digital assets. This includes pancakes, one of the most popular and successful dex on the market today. In this article, we will delve deeper into the pancake world, exploring its unique characteristics, how it has achieved success and what lessons can be learned on your journey.
What is pancake?
Pancakeswap is a decentralized change built in the Smart Binance (BSC) chain using the Ethereum virtual machine (EVM). It was launched in May 2018 by a group of developers led by Arthur “Gobig” Thomas, who decided to create an easier to use and more efficient Dex. Pancakes quickly gained popularity due to simplicity, low taxes and a wide range of commercial pairs.
How do pancakes work?
The pancakeswap operates in the consensus algorithm on Saturday (POS), which is different from the power algorithm used by traditional cryptocurrency exchanges. This means that users do not need to invest in mining equipment or deal with high energy consumption.
Here is a simplified general image of how pancakes works:
- Users deposit their cryptocurities in a pancake basin.
- The group is divided among the validators, responsible for validating the transactions and maintaining the integrity of the network.
- Validators compete to obtain 20% of the total rewards, solving complex mathematics problems.
Why was the success of pancakes?
Pancakeswap has achieved a remarkable success due to several factors:
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- A wide range of negotiating pairs : Pancakeswap offers a wide range of negotiating pairs, including popular actives such as ETH/USDT and USDC/BTC. This makes it easy for users to find the pair they need to negotiate.
- Simple panel process : Pancakes has an easy -use interface, which facilitates users start. The panel is fast and simple, allowing users to deposit their cryptocurrencies and start negotiating immediately.
- Community Support : Pancakeswap has an active community of users who contribute to the platform by different means, including guides, answering questions, and participation in discussions.
Case Study: How PancakeSwap’s success
To understand how pancakes achieved success, examine some important reference points:
- Early adoption
: Pancakes obtained the status of early adoption due to low taxes, wide range of negotiating pairs and a simple plate process. The first adopters were encouraged by the initial advantage of the platform.
- Partnerships with large exchanges : In 2019, pancakes was associated with prominent cryptocurrency exchange platforms such as Binance and Kraken. These partnerships have helped increase the visibility and credibility of the platform.
- This includes updates from the consensus POS algorithm and improvements in the user interface.
Pancake lessons
Pancakeswap’s success provides various lessons for developers and cryptocurrency fans:
- Focus on the user experience : The focus of the pancakes in the user experience was essential to their success. The platform offers a perfect and intuitive interface, which facilitates users’ negotiation.
- Diversify their income flows : Pancakes generates income through transaction commissions, which is a more stable and predictable source of income compared to traditional cryptocurrency exchanges.
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