How to solve the DeFi expansion problem through zero-knowledge proof?

拔丝地瓜

特邀专栏作者

2020-08-24 19:01 (UTC+8)

This article is about 3184 words, reading the full article takes about 5 minutes

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Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Crypto Valley Live (ID: cryptovalley)

What is DeFi?

, Author: Brad Behrens, translation: lily, reprinted with authorization by Odaily."secondary title"money blocks

DeFi demand and the competitiveness of the fee market

Monthly DEX volume by project:https://www.duneanalytics.com/

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Monthly DEX volume by project:

secondary title

"YAM Agreement" launchedhttps://ethgasstation.info/

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image descriptionhttps://yam.zippo.io/

DeFi vision

secondary title"Banking services for the unbanked"DeFi vision

The value proposition of DeFi has always been to create permissionless, non-custodial financial services, and do so with low barriers to entry

ZK-Rollup

Banking services for the unbanked

famous saying. This vision is slowly being eroded due to the increased barriers to entry for small market players due to the competitive nature of the market and the current scalability limitations of the Ethereum network. Since these scalability limitations will remain in place until the first phase of ETH 2.0 is launched, the DeFi space will be forced to adjust by implementing layer-2 scalability solutions, or risk sacrificing its ability to create a permissionless low-cost blockchain. A vision for a barrier-to-entry financial system.

Layer-2 scalability solutions aim to reduce the number of on-chain transactions, or in Ethereum’s case, the number of on-chain computations by employing encryption schemes that ensure the same security and finality as on-chain transactions. The central demand point of the DeFi ecosystem is the DEX, which facilitates the exchange of tokens and allows participants who choose to deposit crypto assets as a means of providing liquidity to facilitate low-slippage transactions. Earn rewards in the form of crypto asset yields. Therefore, it is this central infrastructure that is the primary focus in order to scale sufficiently to reduce demand pressure on block space.

This Layer 2 structure has obvious advantages for platforms that require high throughput, fast settlement times, and cheap transaction fees. Modern DEXs need to meet all of these requirements, and there is also a high demand for block space, as well as being affected by competition in the fee market in terms of transaction fees that are distributed while waiting for transaction confirmation and the multiple transactions required to exchange ERC20 tokens .