How Sevenbits Developed a Truly Decentralized Exchange to Empower Our Client's Business:
One of our clients, who is into the cryptocurrency exchange business, needed a full-fledged decentralized exchange to scale their business with unmatched competitiveness. They wanted a single robust platform with all exclusive DEX features along with detailed information about each service. In addition, the client wanted to enable their cryptocurrency service to a large audience to generate a higher influx.
With the demand for high-end and reliable decentralized systems growing, our client wanted to redefine the whole usability and offer a seamless experience. However, managing network efficiency for bulk transactions and optimizing the network resources were the most significant challenges. In addition, the lack of interoperability between blockchain networks and other exchanges was also the main challenge.
What were the client's requirements?
Our client wanted a full-fledged decentralized exchange system to grow their cryptocurrency business and onboard more customers to use their services. The client's focus was on redefining and simplifying the overall usability of the crypto exchange system. Keeping scalability in mind, they needed a system that could handle many active users throughout the time.
The client wanted to integrate several third-party functionalities to help them attract more crypto users to the platform. In addition, as most of the DEX platforms are not user-friendly, there was a core need to simplify the usability.
Technical challenges we faced:
Decentralized exchanges are performance-driven; however, the DEX creates their on-chain order book with substantial data sets. Due to the higher transaction rate, it depletes all the network resources and slows down the network throughput drastically. In addition, due to the higher transaction load on the system, the order matching waiting time was also significantly higher.
As the on-chain trading is not real-time and minors process all the transactions, there was a challenge of improvising the response time of the entire operation. DEX is powerful; however, it lacks the needed interoperability among blockchain networks and other exchanges. Due to this, it limits trading currency pairs to specific network-issued tokens. In addition, the decentralized exchange requires high computing power to establish synchronization with other networks, making the transaction speed slower. As a result, it increases the trade collisions surging the transaction charges for end-users.
Business challenges we faced:
Due to lower throughput caused by a sluggish order matching mechanism, people opted for faster options like centralized exchanges. As a result, the decentralized exchange owners were facing persistent liquidity problems. Along with this, there was a prior need to create an intuitive front-end that would ease the know-how of the system.
Solution we applied:
Our team first analyzed and prepared a comprehensive and actionable blueprint for developing DEX for our client. Once our team designed the architecture of the modules for seamless development. After this, we deployed all smart contracts leveraging the robust Truffle Suite to create a virtual testing environment.
We modified smart contracts within the test environment to improve the throughput and ensure the overall performance remains seamless at peak loads. Once we deployed all the required smart contracts with Truffle Suite, we synchronized all the multiple nodes of various third-party DEXs. It helped us establish a powerful working mechanism among all blockchain transactions.
After this, we integrated all the existing smart contracts with the Uniswap-V2 UI to make test transactions to check every platform's transaction fees. This feature will help the end-users to know the exact transaction fees before they perform any activit
Results we achieved:
With this implementation, the client is successfully scaling their DEX business by onboarding more users without compromising the performance. In addition, it made the DEX available to a large number of individuals residing in multiple geographies. Compared to the previous implementation of the client's cryptocurrency services, this platform is more performance-driven, on-demand, and scalable.