StarkDEx Launch: Privacy on the Ethereum Network
StarkDEx has announced the launch of their flagship product, a decentralized exchange, in partnership with Starkware Industries. In their own words, STARKs remove the glass ceiling on non-custodial transactions and offer customers the ability to trade at scale without counterparty risk, June 3, 2019.
Under the Hood
At max capacity, the Ethereum blockchain is capable of processing three transactions per second. On StarkDEx, the max capacity is nearly 8,000 transactions per block – a throughput of 550 transactions per second. Moreover, the cost of transacting over the DEx is cheaper than Ethereum by a factor of 200.
To build credibility for their product launch, StarkDEx launched an alpha version that simulates trades by feeding transactions through StarkDEX to be batched and verified. By the end of 2019, StarkDEx will implement an 0x relayer on the Ethereum mainnet.
StarkDEx proves the ability to scale a network on its second layer using STARKs. Zero knowledge proofs are perhaps one of the biggest developments for user privacy. While scaling a network with STARKs is still in its initial phase, the potential to continuously increase throughput is an exciting prospect.
StarkDEx batches transactions together using STARKs to verify them over the Ethereum blockchain. Starkware, which acts as a prover, verifies transactions and stores them off chain before sending the batch for verification on-chain.
StarkDEx is building 0x Mesh, a network transport layer that allows users to interact with the network through browser integration.
More Privacy Innovation on Ethereum
In December 2018, a group of developers under the name ‘AZTEC’ published a paper for a new protocol that allows transaction amounts on the blockchain to be hidden. The developers of AZTEC have already started building over the Ethereum blockchain.
AZTEC is similar to STARKs in that both protocols leverage the power of zero knowledge proofs to enhance user privacy over a network. While AZTEC is live on Ethereum, it is a Turing complete protocol capable of being implemented on any public or permissioned blockchain.
The importance of privacy is being continuously emphasized by the developer’s community, with many solutions releasing to protect user information in transactions. While privacy is an important part of the experience, regulators might see privacy protocols in a bad light, drawing attention from authorities toward certain ledgers.