dYdX to launch its own block chain, Cosmos SDK. It will be ready for launch by the end of the year.
With major dumps happening in the crypto market today, consumers are worried about another dump being on the way similar to Bitcoin. This time users are anticipating Ethereum to be the next.
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.
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.