Decentralized exchanges (DEXs) are peer-to-peer trading platforms that allow users to trade and manage cryptocurrencies directly, bypassing traditional intermediaries like banks and brokers. Utilizing blockchain and smart contracts, DEXs offer transparency in transactions and reduce counterparty and systemic centralization risks. They are a cornerstone of decentralized finance (DeFi), enabling permissionless composability and the development of advanced financial products. DEXs mainly operate through two designs: order book DEXs and automated market makers (AMMs), with DEX aggregators also playing a role by finding the best prices across platforms. The overall aim of DEXs is to eliminate centralized points of failure and decentralize governance through decentralized autonomous organizations (DAOs). While they provide execution certainty and lower entry barriers, DEXs also face challenges such as smart contract vulnerabilities, liquidity issues, and risks associated with decentralization, like front-running attacks. Despite these challenges, DEXs continue to grow, offering innovative financial solutions and expanding the cryptocurrency ecosystem, with tools like Chainlink enhancing their security and functionality.