DYdX to launch decentralized order book exchange on Cosmos: KBW 2023

Decentralized exchange (DEX) platform dYdX plans to provide a “purely decentralized” order book exchange as it moves its ecosystem from the Ethereum network to the interchain network Cosmos.At the Korea Blockchain Week 2023, Cointelegraphs Andrew Fenton spoke with dYdX Foundation CEO Charles dHaussy about the DEXs strategies to execute decentralized order books on the exchange and how it plans to move its environment to a brand-new blockchain network. DHaussy highlighted that dYdX is taking a “brand-new step forward” in decentralization by making the order book decentralized. “And thats one solution, which well use to basically use to the market a simply decentralized order book exchange,” he explained.Related: 40% of crypto trading platforms are decentralized: World Federation of ExchangesApart from the decentralized order book, dHaussy spoke about dYdXs move to Cosmos. “DYdX is not expanding, dYdX is moving.

According to dHaussy, users will barely observe the change, which will be very smooth. Users will just require to connect their MetaMask wallets to the brand-new dYdX chain, adding that dydx will “take care of all the heavy lifting.” Publication: Web3 Gamer: Crypto video games require viral minute, Nitro Nation evaluation, Axies task Greenlight

Decentralized exchange (DEX) platform dYdX prepares to use a “purely decentralized” order book exchange as it migrates its ecosystem from the Ethereum network to the interchain network Cosmos.At the Korea Blockchain Week 2023, Cointelegraphs Andrew Fenton consulted with dYdX Foundation CEO Charles dHaussy about the DEXs strategies to implement decentralized order books on the exchange and how it prepares to shift its community to a brand-new blockchain network. Guests at the Korea Blockchain Week 2023, kept in Seoul, South Korea. Source: CointelegraphIn the interview, dHaussy told Cointelegraph that a person of the problems faced by DEXs is the sluggish performance of on-chain order books. Order books for DEXs had actually to be taken off-chain to cater to the requirements of the users due to the fact that of this problem. He explained:” If you have like a one-second block time, you still have a one-second latency. And the marketplace of crypto derivatives is a really high-frequency market. So, you can not provide one-second latency.” DHaussy highlighted that dYdX is taking a “new advance” in decentralization by making the order book decentralized. According to the executive, the order book will not be on the dYdX chain since it will still be sluggish, but it will rather be hosted within the validators. “So, the architecture option by dYdX engineers is to decentralize the order book, without including it on-chain due to the fact that it will be too slow. The choice was made to essentially host the order book within the memory of the validators,” dHaussy added. DHaussy believes this method is a “new thing within the space.” The executive explained that validators generally validate blocks and produce new blocks with a set of deals. He also stated the validators will still do this on the dYdX chain however will also keep order books in their memory. “And thats one service, which well utilize to basically offer to the market a purely decentralized order book exchange,” he explained.Related: 40% of crypto trading platforms are decentralized: World Federation of ExchangesApart from the decentralized order book, dHaussy discussed dYdXs transfer to Cosmos. “DYdX is not expanding, dYdX is migrating. The Ethereum exchange will close within a couple of months [ …] we are migrating the complete community,” he discussed. v4 Adoption & & DYDX Token MigrationThe dYdX community has actually voted in assistance of v4 Adoption and a prospective DYDX Token Migration ❗ ✅ ~ 36M DYDX from 392 addresses ❌ ~ 43 DYDX from 4 addresseshttps:// t.co/ FBLMZATURn pic.twitter.com/RwyOaDwpe4— dYdX Foundation (@dydxfoundation) September 3, 2023

Other Questions People Ask

What are the key features of the decentralized order book exchange that DYdX plans to launch on Cosmos at KBW 2023?

The decentralized order book exchange that DYdX is launching on Cosmos aims to provide a "purely decentralized" trading experience. According to CEO Charles dHaussy, the order book will not be hosted on-chain due to latency issues but will instead be maintained within the memory of validators. This innovative approach is designed to enhance performance in high-frequency trading environments, making it a significant advancement in the decentralized exchange space.

How will the migration from Ethereum to Cosmos affect users of DYdX's decentralized order book exchange?

DYdX's migration from Ethereum to Cosmos is intended to be a seamless transition for users. Charles dHaussy emphasized that users will only need to connect their MetaMask wallets to the new dYdX chain, with the platform handling all necessary adjustments behind the scenes. This smooth migration process aims to minimize disruption while enhancing the overall trading experience on the new decentralized order book exchange.

What challenges does DYdX face in implementing a decentralized order book exchange on Cosmos?

One of the primary challenges DYdX faces in launching its decentralized order book exchange is the inherent latency associated with on-chain order books. As highlighted by dHaussy, traditional DEXs have struggled with slow performance, which necessitated moving order books off-chain. To address this, DYdX has opted for an architecture where order books are stored in validators' memory, allowing for faster transaction processing while maintaining decentralization.

What does Charles dHaussy mean by saying DYdX is taking a "new advance" in decentralization?

Charles dHaussy describes DYdX's approach as a "new advance" in decentralization because it redefines how order books are managed within a decentralized exchange. By decentralizing the order book while avoiding on-chain hosting, DYdX aims to improve transaction speed and efficiency, which are critical in high-frequency trading markets. This innovative architecture is expected to set a new standard for decentralized exchanges in the blockchain ecosystem.

What implications does the launch of DYdX's decentralized order book exchange have for the future of DEXs?

The launch of DYdX's decentralized order book exchange could significantly influence the future landscape of decentralized exchanges (DEXs). By addressing latency issues and enhancing performance through validator-hosted order books, DYdX may pave the way for other DEXs to adopt similar models. This could lead to a broader acceptance of decentralized trading platforms, ultimately fostering greater innovation and competition within the crypto trading space.