Decentralization, anonymity and security are the basic principles, three pillars of the philosophy of blockchain technology and the world of cryptography. This is the ideal of the economy of the future, self-sufficient and self-regulating.
But still, we live in a very centralized world, where privacy is gradually becoming an unattainable luxury. Cryptocurrencies provide the possibility of anonymous storage and use, however, not everything is simple here either.
How anonymous is the blockchain
Any action on the blockchain leaves an electronic footprint on it. The date, exact time, amount and addresses of the wallets participating in the transaction, after its verification and confirmation, remain in the public domain forever. Only real usernames are not specified.
That is, the blockchain is only partially anonymous. Establishing a connection between an individual wallet and a specific person is very difficult, but technically possible.
Cryptocurrencies are indeed anonymous to the general public, but only in the sense that they can be used without revealing one’s true name. Any user can manage several addresses, which theoretically can be unrelated.
And yet, it is enough to link a transaction at least once with a real person, all other transactions will be associated with this person.
It is enough to exchange even a small amount of USD to BNB at least once, using a credit card or a verified account of the centralized exchange (CEX), incognito will be revealed. Relatively speaking, the anonymity of using cryptocurrency most often ends at the border separating fiat and digital currency.
For this reason, centralized marketplaces are often heavily criticized. However, as long as two financial systems coexist in the world, it is quite difficult to do without them.
Decentralized exchange Uniswap as an alternative to CEX
Decentralized exchanges (DEX) are a logical continuation of the development of a decentralized financial system. These are protocols for the exchange of cryptocurrencies that are based on the blockchain. They greatly simplify exchange transactions, and without the need to disclose any confidential information. Instead of registering, new users simply connect their crypto wallets to the exchange.
Uniswap was one of the first DEX exchanges to use an automatic market maker mechanism instead of the traditional order system. The marketplace is based on an open source protocol deployed on the Ethereum blockchain. Users themselves form liquidity pools and manage them without the intervention and control of any third parties.
For creating and replenishing liquidity pools, users are rewarded in UNI tokens.
What is UNI token
UNI, Uniswap’s native governance token, technically belongs to the ERC-20 standard. It is used to pay network fees, to reward liquidity providers, and to secure the network.
The total supply of the token is set at 1 billion and, at the time of writing, about 75% of the total supply is in circulation. All tokens will become available within the next year, after which a constant inflation rate of 2% will be introduced into the network.
UNI is ranked 18th in the ranking of the largest cryptocurrencies and is currently trading at a price slightly above $7 per token.
The token is available for purchase on many major centralized exchanges and on Uniswap’s home platform.
How to anonymously exchange Uniswap for USD
There are few ways to completely anonymously legally exchange cryptocurrencies for fiat currencies.
First of all, these are offline exchangers. To exchange Uniswap to USD, you need to come to the office. There you will be provided with an address to which you will need to send coins for exchange. After receiving confirmation of the transaction, you will be given your money. For exchange transactions, a commission is charged in the range of 2-3%.
Another way is cashing out through cryptomats. To send coins, the device most often provides a QR code. After confirming the transaction, you will receive cash.
It is possible that the direct exchange of Uniswap to fiat currency is not supported and you will first need to exchange your assets for USDT.
However, please note that in this way you can cash out relatively small amounts, about $ 1,000. In order to process applications for large amounts, you will most likely need to verify your identity through the AML procedure.