New Protocol to Improve Trading on DEXs as IOST Claims 1-Day Higher Transactions Than Ethereum
Daniel Wang’s Loopring has released a redesign of its open-source protocol for building decentralised exchanges (DEXs) especially on the Ethereum platform to achieve 450 trades per sec without on-chain data.
The announcement aimed at improving DEX’s adoption comes as new public blockchain, IOST, reported it processed more transactions than Ethereum in a day. According to a media statement, IOST notes it processed more transactions (580,231) on April 6 than Ethereum network‘s 558,272. In its first month of mainnet launch, the platform claimed to have processed more than 25mln transactions in all. It also cited it partnered with Ehang, a China-based autonomous vehicle company, to provide flight data analytics in a new project for the Civil Aviation Administration of China (CAAC).
For Wang, founder of Loopring, the launch and implementation of Protocol 3.0 is significant because it marks, in some ways, “a radical evolutionary leap towards making this exciting technology a reality for cryptocurrency users and traders around the globe. We may now see the rise of commercially-ready DEXs.”
Loopring is an open-source protocol for building DEXs on any public blockchain that offers smart contract support – though it is currently deployed and focused on Ethereum. It recently partnered with PwC China to research the emergence of stablecoins, and also trialed peer-to-peer trading of security tokens on a DEX with security-token platform Polymath.
The technical design of its protocol 3.0 employs advanced cryptography in the form of Zero-Knowledge Proofs to enable as much work as possible to be done off-chain – including trade settlement – and require only a small proof of correctness to be verified on-chain.
Unlike its past versions capable of verifying and settling approximately two trades per second on Ethereum, 3.0 achieves 450 without on-chain data and 80 with on-chain data availability.
The idea is to enable project teams to use their open-sourced technology to develop DEXs and dApps putting behind the shortcomings of traditional DEX models by increasing scalability and throughput.
“A number of hurdles have delayed the adoption of DEXs to date, including, but not limited to, a lack of scalability,” says Loopring’s Protocol Development Lead, Brecht Devos. “However, there’s no doubting that decentralized exchanges represent the future of crypto trading, addressing, as they do, the multitudinous issues faced by users of centralized exchanges in their day-to-day transactions, such as the risk of hacks, personal data leaks, or blocked funds.”