Ethereum dYdX to launch standalone blockchain on Cosmos

The Ethereum-based decentralized exchange platform dYdX will be deployed in the Cosmos ecosystem as an independent blockchain.The team behind the project makes announcement This morning, there was a positive reaction to its governance token, DYDX.

Related reading | Bitcoin Stable Above $20K After Dropping to $17K – Slow Climb to the Green?

At the time of writing, the coin is trading at $1.50 with an 8% gain over the past 24 hours on its USDT pair and 10% on its ETH pair. Meanwhile, the larger cryptocurrency is facing hurdles and may continue to consolidate around current levels.

DYDX is in a downtrend on the 4-hour chart. resource: DYDXUSDT trading view

The standalone blockchain is part of the platform’s fourth iteration, dYdX v4. The team behind the project expects to “open-source dYdX V4 by the end of 2022,” but as they clarified, this iteration will provide “critical” improvements and therefore “requires months of intensive development.”

The team behind the Ethereum-based trading platform chose Cosmos and its proof-of-stake (PoS) Tendermint consensus for its security, decentralization, customizability, cross-chain capabilities, and scalability.

As a result, the platform will be able to process more transactions and potentially increase its market share, number of users and transaction volume, while entering the next stage of development: complete decentralization. The team behind the project said:

The main requirement of the V4 protocol is complete decentralization. The decentralization of a system is equal to the decentralization of its smallest decentralized component. This means that every part of V4 needs to be decentralized while maintaining high performance.

According to the announcement, the ultimate goal is to make dYdX “one of the largest exchanges of all cryptocurrencies.” This requires an infrastructure that can handle large volumes of transactions and support the exchange engine without compromising its level of decentralization.

The team behind the project Add to:

Developing a decentralized off-chain order book and moving from Ethereum to a dYdX-specific chain as the primary DeFi protocol has not been tested, but we believe this allows dYdX to offer a competitive product experience through centralized exchanges.

Is leaving Ethereum the best option for dApps?

The fourth iteration of dYdX will feature new features such as off-chain order books and no transaction gas fees. The fee structure will be similar to a centralized exchange. The governance token DYDX will continue to be a major part of the exchange’s governance model.

The announcement has been celebrated in parts of the crypto community, and the market seems to be reacting positively to it. Others, however, expressed concern because they believed a standalone version of dYdX would lack security and composability, or design flexibility.

Related reading | Ethereum (ETH) market cap falls by more than $124 billion in six weeks

Analyst Ryan Watkins Say The following from the dYdX announcement:

While I understand the desire for sovereignty and the need to scale faster, I’m not convinced why Lisk is the best way forward. It seems risky to lose the security and composability of the Ethereum ecosystem (rather than deploying on Starknet).



Source link