Blockchain has the potential to become one of the most disruptive technologies in digital history, but to do so it has to overcome its inherent problems, chief among them its transaction throughout limitations and privacy concerns. Fortunately, StarkWare is developing the software stack to solve these two pressing issues. They are doing this by taking the lion's share of computation and storage off-chain and using blockchain as a public immutable commitment layer. The integrity of the data is ensured with a special type of math called zero-knowledge proofs.
DeversiFi is a decentralized exchange, powered by StarkWare, that gives traders the edge in decentralized finance (DeFi) markets by allowing them to trade at lightning speed and with deep aggregated liquidity, directly from their privately owned cryptocurrency wallet. Traders can take advantage of more trading opportunities while always preserving control of their assets.
The new DeversiFi upgrade aimed at professional traders uses ZK-STARK layer 2 scaling technology that has been shown to enable more than 9,000 trades per second. The upgrade includes new features such as self-custodial trading for digital assets, API upgrades, support for hardware wallets, and enhanced privacy protection. Additionally, DeversiFi’s order-books are off-chain, while settlement occurs on the Ethereum blockchain. This means that traders benefit from fast moving order books and instant execution, without having to trust the exchange and whilst maintaining control of their assets at all times.
To protect traders’ privacy, DeversiFi uses StarkEx, StarkWare’s scalability engine, without putting data on-chain. To ensure that even though data is not available on-chain, it will always be available to users who want it, they have established the Data Availability Committee (DAC). The DAC is composed of leading and respected members of the ecosystem and its role is to receive a copy of each state transition, compute and sign a new state, and keep a private and secure copy of this data. In case of emergency, for example - if DeversiFi or StarkWare go offline, the DAC members make their copy of the data publicly available, so any user who needs to can retrieve their account data, and with it their assets. The committee is a necessary part of the StarkWare technology V1 system to ensure traders can trade privately, without their trading history being published on-chain.
“Because of the nature and role of the DAC, it was of utmost importance that the first members will be entities that are valued and respected by the community. Infura’s great reputation, infrastructure expertise, and central position in the industry made it a great addition to the DAC."
-Shiri Perciger, Head of Marketing at StarkWare
With a goal of creating a professional-grade platform for experienced traders, DeversiFi is sure to be a vital player in the digital asset exchange landscape, where the popularity of decentralized exchanges (DEXs) is already growing rapidly.