The Fall of Crypto
A decentralized exchange platform dYdX has recently announced that it will be migrating from Ethereum and will launch its blockchain named Cosmos SDK. The team has announced that an upgrade known as V4 will soon be announced. The blockchain will be built on the Tendermint Proof-of-Stake consensus protocol.
Moving to its own blockchain may prove beneficial for dYdX as it will help the platform increase its user base while reducing the gas. This’ll be giving a very good growth opportunity to the platform as reduction in the gas fees will lead to higher adoption and that will eventually increase the revenue of dYdX.
Talking about the new update, the company says that it will have a “fully decentralized, off-chain, orderbook, and a matching engine capable of scaling to orders of magnitude more throughput than any blockchain can support”.
The dYdX V4 will be a standalone blockchain and is the first of its kind as it will include decentralization, scalability, and customizability all in one place. The company has chosen the standalone Cosmos blockchain as it will help the company adopt “radical changes” in technology. Also, they wanted to make the protocol decentralized in the true sense while also making it functional.
The Cosmos blockchain will not require users to pay gas fees for trading. It is also an ideal platform as it will not rely on an external blockchain system. Therefore, dYdX will have full control over the building of additional features like spot trading, options, or multi-collateral will be under the control of the company.
The goal of the company was to build an open-source code that will be able to support a premium-class product and unique trading experience.
The major components of the dYdX V4 are the core node, indexer, clients, web app, and mobile apps. The team is planning to launch its open source by the end of 2022. It is a huge step towards improvement by the company and therefore will require months of development before users are allowed access.
The Happenings
- dYdX Ditches Ethereum for Its Own Cosmos Blockchain. Link.
- Binance Considers Re-Entering the Korean Market. Link.
- Tech Giants Unite to Form ‘Metaverse Standards Forum’. Link.
- CoinFLEX suspends withdrawals, cites “Extreme Market Conditions”. Link.
- Qatar Central Bank in foundation stage of issuing CBDC, says Governor. Link.
- Blockchain Adoption in Higher Education. Link.
