The cryptocurrency derivatives trading platform dYdX announced a week ago that it would be moving away from the Ethereum environment and developing its blockchain as part of the Cosmos ecosystem. The founder of NYX believes that adding a new chain would let the platform offer its customers the most excellent possible experience by making it possible for the platform to more easily tailor aspects of its operation, such as the fee structure and the transaction speed.
The present platform for dYdX, built on StarkWare, will be replaced with the new chain. StarkWare is an Ethereum scaling solution platform that uses ZK-rollup technology to enable speedy and inexpensive transactions.
Even though layer two networks like StarkWare are increasing Ethereum’s capabilities rapidly, upgrades to the core Ethereum protocol are lagging, and competition from alternative innovative contract ecosystems is becoming more intense by the day.
Some people believe that the fact that DYdX has decided to stop using Ethereum is proof that the original, innovative contract network cannot evolve quickly enough to meet the requirements of a developing cryptocurrency ecosystem.
The road that DYdX took – which saw the platform surpass Ethereum’s layer one blockchain, migrate to StarkWare, and finally quit Ethereum entirely – gives insight into two opposing ideas for the future of cryptocurrencies: the app chain and the global computer. It is also a case study of the inadequacies of Ethereum layer 2s, which are usually seen as a saving grace for a network that has notoriously struggled to grow. The Ethereum network is well-known for its scalability issues.