The problem UNISWAP solves

Uniswap is a decentralized cryptocurrency exchange protocol that runs on the Ethereum blockchain. It allows users to trade cryptocurrencies directly with each other without the need for intermediaries or a centralized authority. The protocol is open source, meaning anyone can access the code and build their own version of the platform.

Uniswap solves several problems in the cryptocurrency exchange industry:

1.Centralization: Traditional cryptocurrency exchanges are centralized, meaning they are controlled by a single entity or group of individuals. This can lead to issues with security, censorship, and transparency. Uniswap, on the other hand, is a decentralized exchange, meaning it is not controlled by any single entity and operates on a trustless system.

2.Intermediaries: Many traditional exchanges require users to go through intermediaries such as banks or payment processors to complete transactions. Uniswap eliminates the need for intermediaries, allowing users to trade cryptocurrencies directly with each other.

3.Order Book Complexity: Traditional exchanges often use complex order book systems, which can be difficult for new users to understand. Uniswap's automated market maker system simplifies the trading process by setting the price of cryptocurrencies based on a mathematical formula.

4.Liquidity: Liquidity can be a problem for smaller cryptocurrency projects or for those with less trading volume. Uniswap's liquidity pool system allows users to contribute liquidity to the platform, which helps to increase liquidity for all users and incentivizes them to hold UNI tokens.

Overall, Uniswap solves these problems by providing a decentralized, simple, and efficient way for users to trade cryptocurrencies securely and without the need for intermediaries.

Challenges I ran into

It is worth noting that like any complex software project, Uniswap has faced its share of bugs and hurdles during its development.One notable issue that Uniswap faced in the past was related to the high gas fees on the Ethereum network. Gas fees are the fees paid to miners to process transactions on the network, and they can fluctuate depending on network demand. During periods of high demand, gas fees can become very expensive, making it difficult for users to trade on Uniswap without incurring significant fees.
To address this issue, Uniswap has implemented various strategies to reduce gas fees, including implementing a Layer 2 scaling solution and introducing an updated version of the protocol, Uniswap V3, which has a more efficient use of gas.Uniswap has also faced other challenges related to security and user experience, but the team has worked diligently to address these issues and continue to improve the platform. Through a combination of community feedback, rigorous testing, and ongoing development efforts, Uniswap has become one of the most widely used and trusted decentralized exchanges in the cryptocurrency ecosystem