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DEX protocol dYdX to build its own blockchain

ByNdasi Tata

Jun 23, 2022

Decentralized exchange platform dYdX has announced plans to build a standalone blockchain, according to details the Ethereum Layer-2 protocol shared on Wednesday.

dYdX, one of the largest crypto derivatives platforms in the market today, says it intends to build the new chain based on the Cosmos SDK (software development toolkit). 

For transaction processing, the dYdX V4 will utilize the Tendermint proof-of-stake (PoS) consensus protocol.

A ‘fully decentralized orderbook’ and higher throughput

dYdX V4 will feature a fully decentralized, off-chain, orderbook and matching engine capable of scaling to orders of magnitude more throughput than any blockchain can support,” the platform noted in a blog post.

While the team at dYdX plans to transition the DEX protocol into one of crypto’s biggest exchanges, they acknoelwdge the enormity of that ambition and the magnitude of how difficult it could be. However, led by co-founder Antonio Juliano, they are confident of successs.

Developing a decentralized off-chain orderbook and moving from Ethereum to a dYdX-specific chain as a major DeFi protocol is very much untested, but we believe this gives dYdX the best shot at offering a competitive product experience with centralized exchanges,” the team said in a Twitter thread.

dYdX V4 will have a Layer1 token native to the chain, though the team says it hasn’t settled on the DYDX token as the community will need to have an input on that.

According to the platform, the plan is to build dYdX and open source it by the end of 2022.

The post DEX protocol dYdX to build its own blockchain appeared first on CoinJournal.

Ndasi Tata

Ndasi Tata is a Cameroonian-born Bitcoin entrepreneur and former state journalist who's also known for being a Bitcoin and Blockchain advocate. He's a crypto lover and reporter and has promoted several crypto projects within the African Continent. He uses a variety of social media and online channels. In addition to running a successful Facebook page with thousands of fans, he also promotes blockchain and bitcoin development initiatives on the well-liked YouTube channel #cryptoafrica-now. He earned an M.Sc. from the University of Nicosia in Cyprus in Blockchain and Digital Currency. At the University of Nicosia, Andreas Antonopoulos, Ph.D., and Antonis Polemitis, Ph.D., serve as role models.

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