IDEX 2.0 Demo launches ahead of Ethereum’s Istanbul Hard Fork intends to keep the trading platform competitive. On December 5, IDEX, which is one of the most popular decentralized exchanges in the world, opened a public beta of its new platform, which introduces some big changes.
IDEX 2.0, dubbed “Optimized Optimistic Rollup,” contains some interesting features users can take advantage of. The platform will introduce a massive increase in off-chain transactions, making it theoretically possible to achieve unlimited off-chain scaling without increasing the on-chain settlement costs.
The newly designed rollup keys will unlock the Ethereum computation by storing data it off-chain and further projecting it through the network in another form called Merkle root.
This will allow ETH to earn unbounded scalability as the number of transactions posted in the Merkle Root is very small.
During the platform demo, developers will get a better idea of how viable this approach is and whether more improvements will be needed. There will also be some changes to the staking of IDEX tokens, because of the introduction of optimistic rollups.
Alex Wearn, co-founder and chief executive officer of IDEX, said that the revamped version 2.0 trading venue is set to make the exchange considerably faster and cheaper to use. He added that the platform would provide token traders with more mainstream trading experience.
Can IDEX 2.0 Solve Ethereum’s Scaling Problems?
IDEX 2.0’s version of optimistic rollups, will roll out several powerful functionalities projected to resolve scaling issues that all decentralized exchanges face, such as speed, cost, and liquidity.
The DEX team revealed that they’d redesigned the platform and laid the foundation to handle hundreds of thousands of transactions per second and provide advanced trading features previously inaccessible on DEXs.
They further explained that the 2.0 Rollup venue builds on IDEX’s current hybrid design to allow for unlimited off-chain scaling with a fixed on-chain settlement cost, eliminating the logjams and costs that have inhibited DEX adoption to date.
Additionally, the new Rollup scheme will rely on a combination of cryptographic fraud proofs and a validator system with well-designed economic incentives.
This implies that IDEX 2.0 will entail validators staking IDEX tokens to monitor and secure the platform’s optimistic rollup transactions. Participants will then be paid a portion of IDEX’s transaction fees as a reward for their service.
Ethereum on the Verge of Major Breakthrough
Ethereum could be on the verge of a breakthrough with this new version of IDEX exchange, which promises to be a solution that makes “infinite scalability” possible. This comes just as the Ethereum Istanbul hard fork reaches its climax for December 7 kickoff, providing increased decentralization, scalability, and security for the network.