OAX Foundation and Enuma Technologies this week announced a major breakthrough in the development of their decentralized exchange trading platform. In preliminary tests, the platform has achieved speeds of over 1,000 transactions per second (TPS) per node, marking real progress towards solving the scalability challenge preventing decentralized exchanges from going mainstream.
The team recently completed performance testing of a new engine leveraging state channel technology, using only a single node server. Given that the system can also scale horizontally by adding nodes, the test indicates that it has the potential to handle over 100,000 or more TPS.
The video below shows the performance test in action, with trading between OAX and WETH tokens taking place off-chain. From the screen, you can see how OAX programmers inputted orders which the system then executed at over 1,000 TPS.
The demo confirms the potential of the OAX tech solution to solve the scalability challenge of the decentralized model and opens up a lot of exciting possibilities for the project. It was performed using a single core from an Intel Xeon processor running at 4GHz and with 4GB of memory. The team obviously expects considerably greater performance running on multiple cores and once additional performance optimizations have been factored in.
Currently, many decentralized exchanges handle as few as 5 to 10 transactions per second, while, by comparison, centralized exchanges can handle thousands. Industry commentators have said that until decentralized exchanges can process the volumes of the mainstream exchanges and payments services there’s little chance of mass adoption occurring. It’s been the aim of the OAX Foundation since the beginning to change that and this news puts it on course to achieve that goal.
For the next step, the team is planning to release a testnet version of the platform along with a software development kit so that everybody can experiment with it.