Forget Bitcoin! Here is a cryptocurrency coin everyone should own.
There is a new king in the room. It’s permissionless, secure and truly decentralised. Its community is thriving. Welcome #UNISWAP
Most articles you will read about UNISWAP will be too mathematical and hard for a lay man to understand. So I will labour to make this simple to click.
Introduction:
Launched in September 2020, the UNISWAP coin was first never taken seriously by the cryptocurrency community. But what very few knew at the time was that the era of centralised exchangers was in its final days. What was growing so rapidly was the decentralised exchangers and UNISWAP was proving to be the reigning king of DEX.
But What Is Uniswap (UNI)?
According to coinmarketcap, Uniswap is described as a popular decentralized trading protocol, known for its role in facilitating automated trading of decentralized finance (DeFi) tokens.
UNISWAP went on to gain considerable popularity after its November 2018 launch thanks to the DeFi phenomenon and associated surge in token trading. For purposes of understanding, UNISWAP is an example of an automated market maker (AMM).
WHY DO PEOPLE LOVE IT?
UNI stands true to the original concept shared by the bitcoin founder in his white paper shared over a decade ago. The bitcoin white paper envisioned a decentralised system of peer-to-peer transactions without a third party. But this took a lot of gamble and too many years to ever happen until people like uniswap came to the scene. The much love for UNISWAP is because it(UNI) aims to keep token trading automated and completely open to anyone who holds tokens, while improving the efficiency of trading versus that on traditional exchanges.
Specifically, Uniswap is a protocol that allows buyers and sellers to exchange ERC-20 tokens in a trustless and permissionless manner. ERC-20 tokens are the most popular style of token currently. They reside on the Ethereum network and are interoperable between all ERC-20 compliant wallets, exchanges, and Dapps. These tokens have seen a sharp increase in use since DeFi (decentralized finance) has been on the rise.
What Problems Does Uniswap (UNI) Solve?
A deeper Uniswap was built to tackle some of the toughest problems facing the market. Its decentralized nature helps to eliminate the power and control that has been accumulated by major exchanges such as Binance and Coinbase. Remember that these two have been kings of centralised exchangers unlike UNI which is DEX.
Additionally, Uniswap plays a critical role in providing new businesses access to international liquidity.
If everything else confuses you, at least remember that UNISWAP provides the following benefits to anyone in the crypto community:
- Flexibility
- Censorship resistance.
- More trading options
- Better security
- Compatibility with the ERC20 token standard requirements.
Should you HODL UNISWAP?
The answer is in first principles of being a bitcoin and cryptocurrency enthusiast. If you do not know the first principles, then you probably should not be investing your money in anything crypto.
