Discover the charm of the dYdX chain
Uncover the Enchantment of the dYdX ChainAuthor: CoinEx Smart Chain Source: medium Translated by: Good Oppa, LianGuai
In the cryptocurrency field, dYdX Chain has recently become a rising star. The Alpha mainnet of dYdX Chain was launched on October 26th at 13:00 (UTC-4), and the genesis block created by validators marked the official launch of dYdX Chain as an independent blockchain. As a top player in the DeFi field, dYdX has undergone major reform by introducing dYdX Chain, enhancing the practicality of DYDX in terms of stake, security, and governance. This improvement has also caused the price to soar, with DYDX reaching $2.495 on October 27th, with an increase of nearly 6% (see the figure below).
dYdX’s founder, Antonio Juliano, expressed his views on the new blockchain of the project on Twitter: “The software behind dYdX Chain has been developed with tremendous effort. Building an entire blockchain with significant new technology within 1.5 years is a huge achievement, and I am incredibly proud of our team.” This naturally raises the question: What exactly is dYdX Chain? What are its features and advantages? Today, we will introduce the basic aspects of dYdX Chain.
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Let’s start with the basic concept. dYdX Chain is built on Cosmos SDK and is a blockchain that utilizes Tendermint consensus. It provides a fully decentralized order book and matching engine capable of processing 2,000 transactions per second, catering to the specific needs of various projects. Transaction fees on dYdX Chain will be priced in USDC and DYDX. The security incentives of this chain will not rely on token inflation like other blockchains; instead, the chain will distribute rewards to validators and stakers through fees to provide them with funding.
The main goal of the alpha phase is to stress test the network and continuously work on adding validators to enhance network stability and security. The testnet has been launched and requires community governance approval to ultimately activate real-time trading on the network.
Now, let’s take a look at the features and advantages of dYdX Chain:
High Throughput
Each dYdX Chain validator will run an in-memory order book that never reaches consensus (i.e., off-chain). Placing and canceling orders will be propagated through the network, similar to regular blockchain transactions, and the order books stored by each validator will eventually be consistent with each other. Orders will be matched together in real-time by the network, and the resulting transactions will be committed to the chain of each block. This allows dYdX Chain to have extremely high order throughput while maintaining decentralization.
Bridging
dYdX Chain has deployed a bridging user interface that allows anyone to bridge their DYDX tokens from Ethereum to dYdX Chain. By providing a simplified token exchange process, dYdX Chain encourages more ethDYDX holders to exchange their tokens for DYDX, allowing them to better participate in the dYdX ecosystem. Additionally, seamless token swapping is also a crucial step in facilitating staking, which will be implemented in the future.
Customizability
dYdX Chain is built on Cosmos, benefiting from complete customizability in terms of blockchain functionality and validator tasks. It is an independent blockchain that can be fine-tuned for specific purposes. This allows builders to freely customize various aspects from the underlying protocol to the user interface.
Conclusion
The public chain sector has always been a fiercely competitive field. In addition to dYdX Chain, many new public chains have emerged in the past few years, such as CoinEx Exchange’s CSC (CoinEx Smart Chain), Aptos and Sui based on Move, and Aleo blockchain focused on privacy based on ZKP technology. A long list of newcomers, each with its unique characteristics, has broken Ethereum’s monopoly in this field. Furthermore, the healthy competition among public chains that constitute the foundation of blockchain technology infrastructure constantly stimulates technological progress and empowers the entire crypto ecosystem. In this fiercely competitive field, public chains must constantly enhance their technical capabilities to achieve greater success.
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