The DeversiFi decentralized exchange, or DEX, relaunched as DeversiFi 2.0 on June 3, incorporating Starkware’s zkSTARK layer-2 scaling technology. This new platform will be able to process over 9,000 transactions per second, while maintaining privacy, liquidity and low fees in a non-custodial solution.
Zero Knowledge Proof Batch Validation
Starkware’s layer-2 solution utilizes Zero Knowledge Proof, or ZKP, technology to bring scalability to non-custodial trading. It achieves this by processing trades in batches and then submitting a single proof for each batch.
This consumes a small fraction of the Ethereum blockchain resources that standard on-chain processing would require. Starkware President Eli Ben Sasson explained the benefits of the technology:
“Commercial grade Defi needs robust cryptography and zkSTARKs are fastest in class, post-quantum safe and can easily scale to tens of thousands of transactions per second with no trusted setup … We are excited to see traders embracing self-custodial trading without sacrificing liquidity or speed”
Benefits of layer-2 scalability
Integration of this technology into DeversiFi 2.0 will bring instant settlement, deep liquidity and withdrawal certainty to the exchange. DeversiFi CEO Will Harborne says it will transform the platform:
“This StarkWare integration will transform the functionality of DeversiFi 2.0. The solutions born out will address the key issue of scalability – but without the usual traditional sacrifices of liquidity, speed, settlement and fees.”
As part of the relaunch, DeversiFi has also assembled a Data Availability Committee, or DAC, including participants such as ConsenSys and Bitfinex. The role of this committee is to retain a copy of the updated account balances and publish this should DeversiFi and Starkware go offline.
This will enable customers to withdraw funds directly from DeversiFi’s Ethereum smart contract. Withdrawal certainty will enable decentralized traders to plan their next trades, reassured that their withdrawals will happen.
The platform also features native integration of Ledger wallets, with Ledger CEO Pascal Gauthier saying:
“With DeversiFi 2.0 bringing the speed of ZKStarks and the security of Ledger to traders, it’s clear that this second iteration of the platform is the next step in decentralized finance.”
DeversiFi is the first DEX to integrate zkSTARK technology, although IDEX has been experimenting with its own scalability solution, and layer-2 DEXs are likely to bring wider adoption to Decentralized Finance, or DeFi, in the coming months.
