ErgoDex, the first eUTxO cross-chain DEX of Cardano, has announced on Twitter the launch of its public testnet.
A decentralized exchange, ErgoDex makes use of the unique design of Cardano and offers the feature of atomic swaps or cross-chain trading for users, allowing them to automatically exchange contracts from two different blockchains.
The cross-chain DEX utilizes the eUTXO ledger paradigm for combining contracts from AMM DEXs with order contracts from order book DEXs, enabling shared liquidity between exchanges built on the Cardano and Ergo blockchains.
The Cardano ecosystem is growing at a great rate with various innovative new products. Recently, a decentralized algorithmic stablecoin dubbed Djed went live on the public testnet.
Charles Hoskinson, IOHK CEO and founder of Cardano, called it a major milestone for algorithmic stablecoins.
eUTxO Model Of Cardano
In a recent statement, Hoskinson said that the UTXO model of Bitcoin hasn’t been able to move due to its limited programmability. Further, Cardano’s founder says that Cardano using the Extended UTXO (EUTXO) accounting model appears to be “the logical next step.”
The world’s leading cryptocurrency, Bitcoin uses the UTXO model, while the biggest altcoin Ethereum uses the account-based model, in which assets are represented as balances. According to Cardano developers. The EUTXO design is preferable to the account-based paradigm of Ethereum since two or more parties can control the same data owing to a “far larger” surface area for attack two or more parties can control the same data owing to a “far larger” surface area for attack. The EUTXO model offers great scalability and parallelism.
Cardano founders are of the opinion that the Ethereum developers are “fundamentally missing,” the model, stating that the anonymous creator of Bitcoin didn’t use the account-based model Ethereum currently uses due to its drawbacks.
Recently, Charles Hoskinson, CEO of Input-Output, tweeted saying that the TVL of the blockchain would be over $19 billion if staked coins were added to the TVL of Cardano.
According to data from DefiLlama, the total value locked of Cardano is about $200 million excluding staked governance assets, as of now.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing