The decentralized exchange (DEX), dYdX, has fired up its public test network on the Cosmos blockchain. This signals a vital move, inching ever closer to a comprehensive transition from the Ethereum-based live version. The dYdX public test network now empowers users with advanced abilities, including the placement of market orders, generation of private keys, and sophisticated limit ordination.
Undoubtedly, the firm anticipates a significant expansion, including potentially more than 30 markets in the network enhancement plans. Currently, spotlighting only bitcoin and ethereum markets, this future integration could symbolize a new era of financial inclusivity and variety.
Ethereum’s present dYdX version, emblematic for its perpetual contracts, repeatedly showed impressive performance with over $728 million in exchange volume recorded over the last 24 hours. The platform not only serves as a vehicle for cryptocurrency exchange but also provides its proprietary governance token, DYDX. This token noted a gradual price surge of 23% over the past two weeks, offering a glimmer of financial hope amid market unpredictability.
Last year, dYdX disclosed an ambitious project following a different roadmap, introducing the notion of a standalone blockchain termed “v4” or version 4. The new protocol hinges on the Cosmos software development kit (SDK), departing from its initial Ethereum base and embracing the Tendermint proof-of-stake consensus algorithm.
This transition is devised not merely as a reactive shift due to prevailing competitive pressures but as a strategic maneuver. It underscores an orientation towards achieving performance efficiency, responsiveness, and scalability that could outstrip Ethereum’s capabilities.
However, the sense of uncertainty lurks behind ambitious plans. Indeed, the company has withheld any specific timeline for the main network’s launch on Cosmos, projected for later this year. The suspense surrounding the definitive switch date leaves many curious observers slightly on edge.
Ultimately, this transition could herald innovation within DEX operations, possibly spurring the assimilation of rarely featured markets. Nevertheless, the steep learning curve may deter some users, potentially impacting current functionality. It’s a delicate balance, a high-stakes game, where risks must be smartly managed to reap the rewards of such an essential transition.
Source: Coindesk
