The idea of Polkadex started back in 2018 when project leaders worked on a consensus algorithm to scale transaction throughput on a distributed network. Looking for a scalable use case they decided to apply the technology to a decentralized exchange. Later they came across the Polkadot network and Substrate framework that allowed building the final version of Polkadex.
We chose Polkadot among other blockchains because it offered us an opportunity to create a highly scalable and fully decentralized platform for a peer-to-peer and trustless token exchange. From the ideation stage, we stated that the Polkadex platform must provide high-frequency trading, high liquidity and ultra-fast transaction speed to support DeFi applications. Moreover, we required an easy interface to make DeFi usable for people with any level of technological knowledge.
Aiming high, we also had very high requirements that are difficult to find in a single network.
Ethereum network has major scalability issues and is unable to handle the high volume of transactions that we envisioned for Polkadex. Other solutions such as NEO, TomoChain or Cardano also have limited scalability and interface development is not as great as we had in mind for Polkadex.
Polkadot, on the other hand, meets Polkadex’s requirements perfectly.
As transactions are processed in a parallelized way the network is considerably faster than the competition. Moreover, Polkadot can bring various tokens and blockchains together creating a vibrant ecosystem. This is definitely what Polkadex exchange requires.
Polkadot’s Substrate also allows us to add new features and constantly develop the Polkadex platform without going through complicated and lengthy processes including hard forks. As we plan to be a single solution for all the DeFi users’ and project teams’ needs it is a crucial advantage for us.
Substrate framework allows us to focus all our attention on optimizing the network and reaching the performance that is second to none.
Polkadex also uses the full power of the Polkadot ecosystem to bring more liquidity to the platform through parachains. The technology adds to Polkadex’s security: through Polkadot parachain, traders can bring liquidity without entrusting their assets to centralized services, lock their assets in Ethereum using Smart Contracts and bring the liquidity to Polkadex, without involving third parties.