Regarding the long-term development of the exchange, the early deployment of its own public chain system can adapt to the market’s growing asset and technical needs. After integrating some DeFi advantages, it can further enhance the composability of transactions and applications.
Author: Lou Yue
At the end of 2020, the entire crypto market has still not stopped moving forward. In addition to the explosion of market conditions and DeFi-related applications and development, major centralized exchanges have also rushed to submit their own public chain ecosystem year-end answers to Decentralized exchanges are competing for more traffic in the market, shaping the diversification and differentiation of products and upgrading their own ecological closed-loop strategy, which also brings new highlights and topics to the industry.
Exchanges step up public chain ecological deployment
In the second half of this year, DeFi has won widespread attention in the market, and has shown explosive growth in transaction volume and the number of users. Among them, transactions, smart contracts, and decentralized applications have been widely used as core scenarios. . The major centralized exchanges seek synergy and symbiotic development with DeFi by continuously adjusting their layout.
Among the many feasible strategic layouts, the exchange public chain is not only a basic technology platform, but also has a huge combination and development space with decentralized applications. Therefore, the exchange has also accelerated the pace of related progress.
Judging from the latest progress in December, Huobi announced the launch of the ecological chain Heco in the middle of the month . OKExChain is about to launch the mainnet . The creation of the original token OKT will begin on January 1, 2021. In order to encourage loyal holders of OKB, 100% of all OKT creation issues will be issued through OKEx Jumpstart, and the exchange public chain track will usher in a new wave of development.
Brief analysis of OKExChain
OKEx is the initial developer of OKExChain and not the manager of the public chain. It plans to develop in a completely open and decentralized way in the future. OKEx only serves as a member of the OKExChain community .
Similar to the relationship between Facebook and Libra (which has been renamed Diem), although Facebook is the dominant party, it is also one of the nodes, with one vote, but not the entire organization.
Focus on trading scenarios
OKEx positions its OKExChain as a “decentralized high-performance transaction public chain “. As the name suggests, OKEx will focus on the implementation of various transaction scenarios and related business applications , and hope to ensure the security and anonymity of decentralized transactions. Meet the needs of high-frequency trading in different trading scenarios.
Judging from the main functions of OKExChain, anyone can run to become a super node, or they can issue their own digital assets, create their own digital asset trading pairs and conduct transactions. OKExChain also supports decentralized order books and swap transactions.
OKExChain supports spot and derivative transactions at the same time. It not only supports liquidity pool and order book transactions, but will also support oracles in the future, and then support liquidity pool or order book transactions for various derivatives such as leverage and perpetual.
At the same time, it plans to further introduce EVM virtual machine technology and OKEx cross-chain gateway, and it will also be compatible with Cosmos’s IBC cross-chain solution, and plan to support oracles to support various derivatives transactions such as leverage and sustainability to meet the transaction needs of different scenarios .
New native token OKT
The OKT token released this time is a brand-new asset . Unlike many exchanges that combine their own public chain with existing platform tokens, OKEx chose to “split” the public chain from the platform token OKB. The OKExChain transaction public chain released the underlying native token OKT (full name OKExChain Token), and launched an activity to pledge OKB to earn OKT. In order to encourage OKB holders, 100% of all OKT creation issues will be issued through OKEx Jumpstart .
Market participation enthusiasm is high. From the perspective of OKB’s trend, the increase has exceeded 35% in the past two days, once rising to 8.1 USDT, a new historical high . As of press time, OKB is hovering around 7.6 USDT, and the 24-hour increase is still over 4%.
The creation of OKT is 10 million , and the theoretical total is 72,208,000. It adopts the halving model like Bitcoin . Its initial block reward is 1 OKT, which is halved every three years.
OKExChain super nodes have two parts of rewards . The first part is the gas fee reward. This block is similar to ETH, and the super node that assigns the block is distributed; the other part is the additional issuance reward. The additional issuance of OKT each year is based on the ratio of 25% and 75%. The voting weight distribution gives block nodes and all nodes.
Decentralized trading platform OKEx DEX
OKEx DEX is a decentralized trading platform issued by OKEx based on OKExChain . It has two DEX transactions: order book and swap. It supports wallet management, digital asset and transaction pair issuance, liquidity pool creation and other functions, which is convenient for users to use various functions. Type DEX products will support more derivatives trading in the future.
Among them, the AMMSwap module development has been basically completed 100%. The module has four core functions: creating any currency liquidity pool, adding liquidity, deleting liquidity, and token swap. It provides APIs including querying currency prices, liquidity, etc. interface.
Understanding OKExChain from two perspectives
As a basic technology platform, the exchange public chain will have great composability in the future. Exchanges can also introduce more projects through the public chain platform to form a diversified development direction such as transactions, technology, and applications.
Public chain bottom design
OKExChain is built based on Cosmos’ Tendermint mechanism and Cosmos SDK. From the underlying design, OKExChain has many similarities with Ethereum 2.0 and Cosmos .
Ethereum 2.0 divides POS nodes into 64 shards, and the specific sharding rules have not been announced. To put it simply, Ethereum 2.0 is a chain with multiple shards, while Cosmos is a chain with multiple shards at the same time. OKExChain has improved on the basis of Cosmos and developed an application chain based on Cosmos, while retaining the Cosmos SDK While cross-chain and other functions can be established, DeFi infrastructure can be established to optimize solutions for different financial applications.
Three major exchange public chain ecology
Taking the three major exchanges of OKEx, Huobi, and Binance as examples, the initial deployment of their own public chain ecosystem has basically taken shape. For example, the development route of the Huobi ecological chain Heco and ETH 2.0 is somewhat similar, supporting the main chain and side chain The extended architecture is currently on the test environment. Binance Smart Chain BSC has introduced smart contracts and is compatible with the Ethereum ecosystem, as well as mainstream Ethereum applications such as MetaMask.
OKExChain is a self-developed public chain system. In addition to being compatible with Ethereum smart contracts , it also supports cross-chain gateways , that is, various mainstream assets can be migrated to OKExChain, and it supports multi-chain ecology. Through the IBC protocol of the Cosmos ecosystem, Each important application has its own exclusive blockchain under the premise of maintaining interoperability.
The public chains of the three major exchanges are all undergoing rapid development. Binance Smart Chain pays more attention to application aspects. Huobi Eco-Chain focuses on improving financial stability and throughput while maintaining security. OKExChain focuses on DEX and on-chain. Optimized solutions for asset circulation, cross-chain, transaction, etc.
In addition, as the main networks of various public chains are launched, more complex applications and technical scenarios may be developed from the aspects of technology, ecology, economy, products, etc., and the output will be easier to use in exploring the integration of CeFi and DeFi Of decentralized financial products.
summary
Regarding the long-term development of the exchange, the early deployment of its own public chain system can adapt to the market’s growing asset and technical needs. After integrating some DeFi advantages, it can further enhance the composability of transactions and applications, such as OKEx this time The new OKT product of OKT explores more decentralized trading services while “ditching” certain exchange native tokens, and further seeks a balance between DeFi and CeFi through incentives such as pledges, DEX plus oracles.
