eckoDEX: The Next Generation of DEXes
Last updated
Last updated
Many of eckoDEX's competitors, namely those that proport the same benefits in cost and scalability, are based on PoS blockchain technologies. In such systems, transactions are validated based on tokens owned and staked on the blockchain. Thus, by its very nature, PoS tends to centralize tokens in the hands of very large nodes (either directly or via delegation). In general, centralization means efficiency, but it goes against the original fundamental blockchain philosophy of decentralization and disintermediation. PoS is not substantially different from the way fiat money systems work, wherein major stakeholders have a quasi-monopoly control over the whole system. Actors with larger deposits hold the responsibility for controlling how transactions are validated and how much new money is created (concentration dominance). The possible involvement of financial institutions in PoS-based blockchains is a tangible risk and is ultimately the reason why PoS does not work. It essentially pays the rich to be rich and functions as an authorization-based system – therefore not decentralized. The integrity of a blockchain network relies on total decentralization and the PoS model currently undermines this quality.
PoW, on the other hand, has been used extensively for a decade, showing itself to be provably secure as a function of the amount of computing power required to influence the network. This inherently means that PoS and PoW do not hold the same level of confidence and reliability. The risk of hacking and cyber-attacks is a factor that cannot be overlooked when discussing blockchain security. To date, there have been a total of 54 relevant hacking events, with funds lost totaling at around $2.4 billion at the time of these hacks.
The origins and rise of PoS projects are linked to a fundamental technological deficiency of PoW Layer-1 blockchains. Before Kadena, no blockchain had been able to offer a secure, decentralized platform that solved the problem of scalability. This left room for temporary tactical solutions that never fully addressed the core issues. Now because of Kadena, users benefit from a blockchain network that provides all the advantages of PoW consensus, while being infinitely scalable and maintaining decentralization.
It is this ability to scale along with novel improvements to smart contract logic that enables eckoDEX to bring the security of PoW in a scalable and gas-free environment to DeFi. This strong departure from the traditional Ethereum based model will revolutionize the face of DeFi, delivering tools that are truly open and accessible to all.
