Is DeversiFi 2.0 based on StarkEx DEX? Perhaps it is more accurate to call it a “self-custodial exchange”
StarkWare believes that the disadvantage of “decentralized exchange” is that it is difficult to scale, which is the problem solved by StarkDEX; the disadvantage of “centralized exchange” is that it is impossible to realize the user’s own custody of assets (SC-Trading), which is solved by StarkEx The problem.
Written by Donnager
DeversiFi 2.0, driven by the exchange solution StarkExchange (StarkEx), has just been launched on the Ethereum mainnet. Although DeversiFi can be called a “decentralized exchange” (DEX), in fact, they call themselves “self-custodial exchange” (self-custodial exchange).
DeversiFi was formerly known as Ethfinex formed by the exchange Bitfinex. After changing its name, DeversiFi called itself a “completely independent exchange”.
StarkEx is a technology solution that uses STARK (abbreviation of a zero-knowledge proof protocol) to enhance centralized exchanges. In addition to maintaining the security of asset custody, it also provides sufficient scalability engines that can be achieved in the demonstration 9000 transactions per second.
In addition to DeversiFi, the development company Immutable of Gods Unchained recently announced that it will develop a non-homogeneous token (NFT) exchange Immutable X based on StarkEx and plans to go live in the third quarter.
Developed by StarkWare, a low-key technology company
StarkEx was developed by StarkWare, a zero-knowledge proof research and development organization. This is a low-key technology company headquartered in Israel. Even Ethereum co-founder Vitalik Buterin is one of their investors.
At the beginning of 2018, StarkWare received 6 million seed rounds of financing from some prominent investors, including MetaStable Capital, Pantera, Polychain, Zcash, and Vitalik Buterin himself, and then in October of that year, it received a group of top investors of $30 million. Support, led by Paradigm, others include Intel Venture Capital, Sequoia, ConsenSys, Coinbase Ventures, Multicoin Capital, etc.
The focus of StarkWare’s research and development is to apply a new technology “STARK” (simple and fully transparent zero-knowledge proof) in the zero-knowledge proof protocol to the actual needs of more blockchains, such as in exchanges. Optimize custody, trading, settlement engines, etc.
What is the difference between StarkEx and StarkDEX?
StarkWare currently has two exchange-related technologies: StarkEx and StarkDEX. In fact, it is easy to distinguish. The latter has a letter “D” more than the former, which is the meaning of Decentralized.
This means that StarkEx is a solution to enhance the “centralized exchange” and StarkDEX is a solution to enhance the “decentralized exchange”.
Although StarkEx still has a centralized part, it solves a core problem of other centralized exchanges: asset custody. StarkEx can provide a compromise solution for the exchange, which can not only consider the speed of the transaction, but also allow users to custody related assets.
StarkWare believes that the disadvantage of “decentralized exchange” is that it is difficult to scale, which is the problem solved by StarkDEX; the disadvantage of “centralized exchange” is that it is impossible to realize the user’s own custody of assets (SC-Trading), which is solved by StarkEx The problem.
“Centralized asset custody” is the main reason why centralized exchanges are challenged. Even large exchanges may cause hackers to steal funds deposited by users because of imperfect custody technology or loopholes. In StarkEx’s solution, users need to custody their own assets and do not need to transfer the assets to the exchange in advance for custody.
“Transaction performance” is the main reason why decentralized exchanges are challenged. Taking Ethereum as an example, the ultimate performance of the entire network is dozens of transactions per second, plus the two-layer expansion solution such as Rollup, at most Raised to thousands of pens per second. In the StarkEx solution adopted by DeversiFi, the Layer 2 expansion solution based on ZK-STARK technology is integrated, which can achieve a transaction speed of more than 9000 transactions per second.
Users can access the liquidity of centralized exchanges through self-hosting
As StarkEx expansion plan, the chain had heard the author explained, this is a similar but not the same Rollup new technologies, Vitalik suggested that such expansion program can be called “Validium” in Latin, is “effective “the meaning of.
StarkDEX is a prototype product developed by StarkWare and blockchain transaction protocol 0x. Last year, the Alpha version of the project was released. According to reports, compared with other DEX, it can increase transaction throughput by 20 times and save about 95% of transactions. Cost (Gas fee).
Compared with most exchanges currently standing in the two extremes of centralization and decentralization, DeversiFi chose to find a balance between centralization and decentralization, which not only maintains the security of non-custodial, but also provides Hundreds of times higher transaction performance. Next, DeversiFi and StarkEx will face “testing” the main net of live ammunition.
More Story: https://en.0xzx.com/
