In the world of decentralized exchanges (DEX), the shift to Cosmos has become a trend, as dYdX, a leading DEX platform, announces its plan to leave Ethereum due to slow transaction speeds.
dYdX will launch a private testnet on March 28th and test it for 2-3 weeks. The project will then move on to a public testnet in late July, with the goal of running entirely on Cosmos by the end of September.
According to Natha Cha, head of marketing at dYdX, the main reason for the move is that Ethereum can no longer meet the platform’s scaling needs. “We have reached the point where Ethereum can no longer process transactions fast enough,” he said.
This is the second project to announce a move from Ethereum to Cosmos, with SushiSwap, a decentralized exchange, also taking similar action after acquiring the Vortex Protocol trading platform on Cosmos last month.
Developers considered various network solutions, including Solana and Layer 2 solutions, before deciding that Cosmos was the best option. “We came to the conclusion that Cosmos is a better choice because we can customize the blockchain to our needs. Now we can process transactions faster,” said Cha.
The Cosmos network allows developers to create their blockchain through the Cosmos Software Development Kit (SDK). Although each blockchain on Cosmos is different, they are all part of the same ecosystem and can interact with each other.
The move to Cosmos highlights the challenges of the Ethereum network’s transaction speed, which has become an issue for many DeFi platforms that have gained popularity recently. dYdX’s shift to Cosmos signals a new chapter in the world of DEX, as developers seek out more efficient solutions to overcome network limitations.
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This article was republish from azcoinnews.com
