Incredible news from Kinetex!
Dubai, UAE, 10th November 2023, The team has made it and became the finalists of the ETHGlobal hackathon held in Paris. During the event, Kinetex co-founders Tigran Bolshoi and Mike Shishko presented Kinetex Light Clients, which received fantastic feedback from the hackathon judges. The team is thrilled about this accomplishment and looking forward to implementing this solution in the upcoming second mode of the Kinetex dApp, Flash Trade.
Flash Trade will provide users with a decentralized cross-chain public resolving solution. With Flash Trade, users will be able to trade directly with professional market makers and benefit from high speed, guaranteed rates, and enhanced security. The team is working hard to make Flash Trade the go-to solution for crypto traders and holders, along with the existing Liquidation Aggregation mode.
Cross-chain Problems & Kinetex Approach
Kinetex stands out from other DeFi projects by prioritizing the concept of composability and unification of DeFi sector solutions rather than striving to become the best bridge or message protocol.
Following those beliefs, the Kinetex team proposes a new approach to moving liquidity. Rather than relying on a controlled liquidity pool often endangered by hacker attacks, Kinetex shifts control to participants of a decentralized market, professional market makers (called resolvers by Kinetex). Users create swap orders, and resolvers fill them and take all the consequent risks, including finding and maintaining liquidity, paying gas fees, etc. In return, they can access many arbitrage opportunities. Such a resolving model allows Kinetex to foster a truly decentralized and fair market, where resolvers compete to serve users, and users benefit from better prices and speed.
After executing a comprehensive analysis, the Kinetex team has identified multiple critical issues that must be addressed to ensure the system’s consistency, reliability, and efficiency. One of the primary concerns is the time it takes to validate transactions. On average, it takes between 2 to 5 minutes to validate a transaction, which is not too time-consuming but may add up when a multi-part cross-chain swap is needed. Additionally, the cost of gas and price slippage can fluctuate during the validation process, leading to possible extra losses and complications. Finally, batching, which can help with gas costs, is not accessible on bridges, leading to unnecessary expenses that could have been avoided.
To address these issues, Kinetex Light Clients have been introduced. With their assistance, Kinetex can ensure direct peer-to-peer transactions between users and resolvers while allowing for processing transactions in batches and eliminating the need to wait for validators and, hence, depend on them. As a result, Kinetex is able to reduce gas costs significantly. Furthermore, Kinetex can optimize gas payments even more by introducing zero-knowledge technology (Zk technology) in the batches.
Kinetex Zk Light Clients
Light clients were created to simplify and optimize communication with blockchains. Unlike full nodes that have to download and verify every blockchain block, light clients can do so without needing full synchronization by asking full nodes for more data when needed.
By utilizing Zk technology in their light clients, Kinetex can optimize the verification process even further. While traditional light clients, though they do not need to copy blockchain completely, still have to check all previous headers, a Zk light client can verify it all with just one proof and a few public input hashes, thus requiring significantly less computational resources and time. Another crucial advantage of the Kinetex on-chain light clients is their versatility, as they can be deployed on many networks, both layer-1 and layer-2. It became possible by employing Hashi adapters developed specifically for various cross-chain messaging protocols.
Kinetex’s victory in Paris helped the team to realize that such solutions are truly needed today in the crypto industry by users and Defi projects alike. The team is extremely proud of such an achievement and cannot wait for you to try Flash Trade soon!
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