## Understanding What are Decentralized Trading Protocols and Why Does it Matter for Web3

Decentralized trading protocols [aim](https://www.bis.org/publ/work1061.pdf) to offer an alternative to traditional centralized exchanges (CEX) in the trading of cryptocurrencies. The main vision behind decentralization is to eliminate the need for intermediaries and provide a more secure and transparent platform for trading digital assets.

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With no central authority controlling the exchange, users have complete control over their assets, reducing the risk of theft or loss in the event of a hack. Decentralized trading protocols offer numerous [benefits](https://www.coindesk.com/tech/2022/03/10/why-decentralized-exchanges-are-important-in-the-crypto-economy/), including increased security, reduced fees, and improved privacy. They also provide a level of transparency that is not possible with centralized exchanges, as all transactions are publicly recorded on a blockchain. This allows for greater accountability and reduces the possibility of fraud. In addition, decentralized trading protocols enable cross-border trading and enable users to trade assets that may not be available on centralized exchanges.

## What is a Dual-Chain System in DeFi?

A dual-chain system in blockchain refers to a system where two chains are utilized to achieve a specific goal. The dual-system in DeFi refers to the use of two different protocols, one for settlement and the other for communication, in a decentralized finance system. This setup allows for faster and more efficient transactions while still maintaining the security and decentralization provided by the underlying blockchain technology. The communication protocol is responsible for transmitting information and executing transactions, while the settlement protocol ensures that the actual transfer of funds takes place in a secure and transparent manner.

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This approach allows DeFi systems to handle high volumes of transactions while still providing the necessary security and trust for users to participate in financial activities. The use of a dual-system in DeFi provides a balance between speed, efficiency, and security, making it a key component of the growing DeFi ecosystem.

## Innovative Dual-Chain System Unifies User Experience and Decentralization on Dexalot Subnet Launch

Decentralized cryptocurrency exchange, Dexalot, has launched its new trading platform, the Dexalot Subnet, on the Avalanche network. This marks a significant milestone in the advancement of decentralized trading protocols and offers a user experience similar to centralized exchanges (CEX) while maintaining decentralization and transparency.

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In the case of Dexalot, the dual-chain system consists of the main chain (Avalanche C-Chain) and the exchange chain (Dexalot Subnet). The main chain is responsible for the deposit and withdrawal of assets, while the exchange chain facilitates the actual trading of assets.

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By utilizing both chains, Dexalot is able to offer a user experience that is similar to centralized exchanges (CEX) without sacrificing decentralization and transparency. The exchange chain, or Subnet, is built on an Avalanche Subnet and has been optimized for speed, safety, and user experience through the use of an on-chain central limit order book (CLOB) and low transaction fees. 

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The communication between the main chain and the exchange chain is facilitated through cross-chain communication protocols, which enables DeFi users to trade with confidence without having to surrender control over their assets. The innovative dual-chain design sets the stage for further mass adoption of DeFi by establishing a foundation for multiple ecosystem interoperabilities to be created on top of and around it.

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According to Cengiz Dincoglu, Co-Founder and CTO of Dexalot, the Subnet is optimized for speed, safety, and user experience. The team behind Dexalot is looking forward to introducing DeFi traders to the platform and setting itself apart from other centralized and decentralized exchanges in the market.

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The innovative design of the Subnet lays a foundation for expanding to other host chains, furthering the mass adoption of DeFi. The implementation is said to create opportunities for multiple ecosystem interoperabilities to be built on top of and around Dexalot.

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