Most Decentralized exchanges (DEXs) are notoriously slow and this has become a muse for the recent team up. Zero-knowledge proofs (ZKP) could help decentralized exchanges (DEXs) reach speeds comparable to more traditional platforms. This cryptographic solution can process roughly 500 transactions per second. 0x, a DEX startup based in San Francisco has partnered with StarkWare with an Israeli software-as-service company to test a ZKP solution called StarkDEX.
Matt Taylor, who is 0x marketing lead said in an interview that: “Our goal is that by the end of this year we’ll have this in production, on mainnet, so that people can actually use this technology… We intend to have this be a core part of the 0x DEX stack.” He also mentioned that since 0x was founded in 2017, their system has facilitated $713,000 worth of trades. Currently, DEXs that use 0x can process between a few hundred and roughly 3,100 trades a day and the major challenge is scaling.
Uri Kolodny, StarkWare CEO mentioned in an interview that the goal is clear: “Non-custodial trading at scale.” He acknowledged current limitations of networks as well- “A marketplace where only three trades per second can be settled is a very illiquid market,” The StarkWare CEO also mentioned it will take months before this alpha test leads to a professional service for 0x relayers and other blockchain companies.
“If we provide scalability engines for trading, or gaming, or any application that one wishes to run on the blockchain, you can use [StarkWare] computation that takes everything else you’re doing off-chain and achieve massive scale.” Said the CEO
There are legal disputes surrounding this proffered solution in terms of the ownership of this intellectual property. This startup’s ZKP expertise and solutions are so sought after that the Technion University, where StarkWare co-founder Eli Ben-Sasson also works as a professor. They claim that their professor is from making money off the university’s intellectual property or in their words “getting rich”. StarkWare had earlier attracted investment from ConsenSys Ventures, Vitalik Buterin the ethereum creator and the Zcash Company among others and these are prominent figures.
Clearly, it has sparked prior claims. This, however, does not derail the aim of StarkWare’s latest partnership is to enhance scalability across the industry.
Credits- Leigh CuenJOIN OUR COMMUNITY