Uniswap is a decentralized cryptocurrency exchange (also known as a decentralized exchange) that facilitates automated transactions between cryptocurrency tokens in the Ethereum blockchain through the use of smart contracts. The goal of Uniswap is to keep automated token trading open for any user who owns tokens, while also seeking to improve the efficiency of transaction operations compared to traditional exchanges. Uniswap is much more efficient because it solves liquidity problems through automatic solutions, thus avoiding frequent problems that affected the first decentralized exchanges.In September 2020, Uniswap decided to go a step further and created its own management token, UNI, for the most experienced users of the protocol. This added to potential higher profitability, as well as the ability of users to shape their future; a very attractive aspect of decentralized entities.
Uniswap (UNI) – History
The Uniswap cryptocurrency was born as a project that thought of offering itself to fulfill two functions: first, to serve as a Decentralized Exchange (DEX) within the Ethereum ecosystem. Second, offer an Automated Market Maker (AMM) Protocol. Because Uniswap relied on Ethereum and its smart contracts to achieve its goals, it allowed it to ensure the absence of any form of centralization for it to work. In addition to integrating with the other large number of existing ERC-20 tokens. Ultimately, Uniswap has become a completely autonomous system guided by only one thing: its own programming, which is transparent and immutable.The start of the Uniswap project is quite unique because it all started as a result of a series of posts made by Vitalik Buterin during the year 2017. The first of these posts was on Reddit, where Buterin distinguishes the ability to create DEX on Ethereum. In fact, it was this first post that led to several such projects. Then, in March 2018, Buterin showed off his expertise again in another position that was aimed at decentralized market makers. At this point, Hayden Adams published his idea, thus showing what his first contract with Uniswap would be.
Uniswap Coin (UNI) – Economy
This cryptocurrency can be used both to carry out transactions within its own exchange (Uniswap), as well as to exchange it for other cryptocurrencies, either on its own exchange or with third parties.
How does Uniswap Work?
The UNI cryptocurrency is not just any cryptocurrency, but rather grants governance rights to the users who own it. This means that UNI owners can vote on any changes that can be made to the Uniswap protocol. Therefore, UNI is technically a publicly-traded company stock. By having this token, you become the owner of a part of the entire present and future Uniswap platform.
Uniswap (UNI) – Addresses
A UNI address is a unique form of identification that each user of the network has, it fulfills the objective of being able to carry out transactions (both send and receive) with cryptocurrencies quickly and easily. In the world of cryptocurrencies, addresses work in the same way as in the traditional financial system, whether it is to receive or send money. This means that it works as a kind of bank account.
Unisawp (UNI) – Transactions
A transaction made with UNI is nothing more than a transfer of values between two wallets that are recorded on a blockchain. In order for money to be sent from a virtual wallet, the emissary must first sign the transaction with his unique private key to prove that he is the owner of said funds.
Unisawp (UNI) – Mining
Unlike Bitcoin and many other cryptocurrencies, UNI is not extracted in the traditional way, but rather through liquidity mining. This type of mining, also known as productive agriculture, works as follows: Decentralized exchanges (DEX) need liquidity to function. Users who have tokens are those who provide funds or liquidity (LP) to DEX. Then they reward and reward users who, thanks to their capital, allow it to continue operating.That is, just by leaving our funds locked in one of the decentralized platforms, we are helping them to continue working and, in return, we have the opportunity to earn rewards with commissions on one or more tokens (UNI) and thus generate passive income when leaving our tokens in the liquidity pool.
Uniswap (Uni) – Privacidad
Each of the transactions carried out that are stored in a public “book” and called blockchain, allows us to investigate the history of a crypto-money in order to avoid robots, and copies, that someone ends up in transactions.