variety of platforms and participate in the governance of the network.
dYdX Trading, the US-based firm behind the popular decentralized derivatives exchange dYdX, has taken a significant step forward with the release of its open source code for its independent blockchain. The launch of dYdX Chain, which represents an upgraded version (dYdX V4) of the derivatives exchange, marks an important milestone for the company and the broader blockchain community.
According to Antonio Juliano, Founder and CEO of dYdX Trading, the release of dYdX Chain brings transparency and security to derivatives trading. The exchange will be entirely run by code and controlled by its users, ensuring a decentralized and trustworthy platform for trading. Importantly, this upgrade involves a transition from an Ethereum-based layer 2 blockchain to a Cosmos-based proof of stake protocol, which will be secured and governed by DYDX token holders.
To facilitate the launch of the dYdX Mainnet, the trading firm has introduced the code as a governance proposal. This proposal will require approval from DYDX token holders and support from a series of third-party validators, nodes, and other community contributors. The involvement of the community in the decision-making process highlights the commitment of dYdX to creating a truly decentralized and user-driven platform.
It is worth noting that the launch of dYdX Chain will not impact the existing dYdX exchange, as both platforms will run concurrently for an undisclosed period of time. This allows users to continue trading on the current exchange while the transition to the new mainnet takes place. This approach ensures a seamless user experience and minimizes disruptions during the upgrade process.
The dYdX Chain testnet was launched earlier this year in March and has undergone several upgrades since then. Nathan Cha, marketing lead at dYdX, confirmed that the testnet has been performing well and any issues have been addressed promptly. An audit conducted by blockchain auditor Informal System also found no critical errors in the open source code, adding to the confidence in the robustness and security of the platform.
In a significant development, dYdX Trading will no longer be responsible for running and operating the infrastructure behind dYdX Chain. Instead, third-party entities will handle these operations, further enhancing the decentralized nature of the platform. This move reflects the company's commitment to building a community-driven ecosystem where users have greater control and influence over the network.
Furthermore, dYdX Trading recently announced a transition in its company charter to become a Public Benefit Corporation (PBC). This change signifies the company's commitment to not only generating profits but also benefiting society and the environment. By adopting this new corporate structure, dYdX Trading aligns its goals with the interests of the broader community and demonstrates its dedication to creating positive social impact.
Another noteworthy feature of dYdX Chain is its permissionless nature, allowing users to access the blockchain from various platforms and participate in the governance of the network. This inclusivity ensures that anyone can contribute to the development and improvement of the platform, fostering innovation and collaboration within the community.
Overall, the release of the open source code for dYdX Chain represents a significant milestone for dYdX Trading and the decentralized derivatives trading landscape. By providing a transparent and secure platform run solely by code, dYdX is empowering its users and creating a more equitable and decentralized financial system. With the ongoing support from DYDX token holders and the broader community, dYdX Chain is poised to revolutionize the derivatives trading industry and set new standards for decentralized finance.
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