There are always some developments in the cryptocurrency space worth paying attention to. LoopRing’s implementation of zkRollup for DEXes is certainly paying off.
It is a very interesting way of scaling transactions on Ethereum.
zkRollup is a Powerful Tool
The main benefit of zkRollup is how transactions can be bunched together, instead of being handled individually.
Several DEXes could benefit from implementing this technology in the future.
WeDEX is one of the exchanges utilizing this technology so far.
With nearly 400,000 trades completed at a cost or 9.2 ETH for gas, the improvement is quite palpable.
This results in a cost of $0.0315 per trade, which is significantly lower compared to other solutions.
One has to keep in mind this includes the on-chain settlement costs associated with the transactions.
Offline-wise, there is a fee of $0.0059 to pay the AWS bill.
Very significant improvements for the blockchain and the services making use of this new technology.
According to LoopRing, further improvements can be expected soon.
The current AWS relayer is not processing the largest possible transaction batches yet.
Once this process begins, the overall costs will be reduced even further, while the throughput could increase further.
It is crucial to keep a close eye on these developments.
zkRollup may be the scaling solution exchanges have been looking for all these years.