Top Essential Features of a Decentralized Exchange

It’s a big task to build a decentralized exchange, especially in the times when changes come thick and fast in the crypto space. In 2025, it’s more competitive than ever, and user expectations are higher nowadays.

The common pain points for many developers looking to build their maiden DEX solutions or optimize an existing one revolve around ease of use versus robust functionality, ensuring liquidity, and addressing the challenge of a clean UX. If your DEX does not address these pain points, it will not survive long in the increasingly crowded market. Fast and secure DEX solutions for reliable trading are a must.

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This article isn’t about how DEXs work. If you’re reading this, you already know. Let’s talk instead about why some fly while others barely get off the runway.

Table of contents:

Why Uniswap V4 is the Best Choice for Most DEX Development Purposes
Top 5 Features To Compete With Uniswap V4
How to Overcome Challenges with IdeaSoft
Tech Stack Recommended & Other Security Measures
Summary

Why Uniswap V4 is the Best Choice for Most DEX Development Purposes

Automated Market Makers (AMMs) have revolutionized the decentralized finance (DeFi) ecosystem. They eliminate the need for traditional order books by allowing users to trade directly from their wallets. They make the process seamless and decentralized. AMMs have become crucial for liquidity provision in DeFi, enabling continuous trading and bringing innovation to the financial landscape.

AMMs facilitate trading by using smart contracts to create liquidity pools. These pools are funded by users who earn fees from trades executed within them. This system democratizes market making, providing opportunities for anyone to contribute liquidity and earn rewards. AMM-based DEX development offers benefits like reduced slippage, enhanced liquidity, and the ability to trade a wide range of assets without the need for a central authority.

DEX AMM Features with Uniswap V4

Let’s discuss Uniswap v4 opportunities:

Custom liquidity pool structures. One of the standout features of Uniswap V4 is the ability to create custom liquidity pools. These pools allow for unique configurations that can better meet specific trading needs. Custom liquidity pools can optimize liquidity provision by focusing on particular price ranges or asset pairs, thus maximizing returns for liquidity providers.
Advanced fee mechanisms. Uniswap V4 introduces advanced fee mechanisms that offer more flexibility than previous versions. These mechanisms allow for dynamic fee adjustments based on market conditions. By customizing fees, liquidity providers can optimize their earnings and ensure the trading environment remains competitive and fair.
Tailored trading algorithms. These algorithms can be designed to automatically adjust liquidity positions, optimize trading routes, and manage risk more effectively. This level of customization can significantly enhance trading efficiency and profitability.

Each Uniswap version brings significant improvements. Let’s look at the evolution from V3 to V4 and highlight the new AMM features with Uniswap.

Feature/Improvement	Uniswap V3	Uniswap V4
Concentrated Liquidity	Liquidity providers can concentrate their funds in specific price ranges.	Further optimized for efficiency and profitability.
Customizable Fees	Different fee tiers to suit varying trading pairs.	More flexible fee structure for tailored liquidity provision.
Oracle Enhancements	Improved time-weighted average price (TWAP) oracles.	More accurate and reliable oracles for better pricing data.
Capital Efficiency	Greater capital efficiency with concentrated liquidity.	Enhanced capital efficiency, reducing costs for liquidity providers.
Security Features	Multiple security audits and robust mechanisms.	Advanced security features to protect users’ funds and trades.
Protocol Upgrades	Easier upgrades to future versions.	Streamlined upgrade process with backward compatibility.
Layer 2 Integration	Optimized for Ethereum mainnet and layer-2 solutions.	Improved integration with layer-2 solutions for faster and cheaper transactions.

Enhancements in Uniswap V4

Uniswap V4 takes AMM functionalities to the next level. Here are some of the notable enhancements:

Improved capital efficiency. Uniswap V4 further optimizes capital efficiency by allowing liquidity providers to allocate their funds even more precisely. This means higher returns on smaller capital investments and reduced risk.
Dynamic fees. The introduction of a more flexible fee structure in V4 allows liquidity providers to set dynamic fees based on market conditions. This adaptability ensures better profitability and responsiveness to market changes.
Better Oracle functionality. The improvements in Oracle functionality provide more accurate and reliable pricing data. This enhancement ensures that trades are executed at fair market prices. As a result, the risk of manipulation is reduced while system trust is increased.
Streamlined upgrades. Upgrading to Uniswap V4 is more straightforward. Backward compatibility ensures that previous versions’ features are retained. This makes it easier for users to adopt the latest version without losing functionality.
Layer-2 integrations. Uniswap V4 offers improved integration with layer 2 solutions. This integration results in faster transaction times and lower fees.

As you can see, Uniswap V4 represents a significant step forward in the evolution of AMMs.

Top 5 Features To Compete With Uniswap V4

We have identified the main innovations of Uniswap v4 compared to Uniswap v3. Next, let’s discuss what is a key feature of decentralized exchanges.

Feature 1: Liquidity Management

Of all the key features of a decentralized exchange, arguably the most important feature is liquidity management. Without ample liquidity, users face high slippage, longer transaction execution times, and, overall, a very frustrating trading experience. Through liquidity pools, decentralized exchanges are able to match trades quickly, ensuring that the platform remains usable and attractive for the users.

Competitive rates are merely a starting point for liquidity management in 2024. The top DEXs now employ sophisticated algorithms that rebalance pools, incentivize liquidity providers, and even yield farming solutions to maintain deep liquidity.

Liquidity will make or break your DEX. A well-managed system keeps the trades flowing with as little friction for the user as possible, which in turn keeps them coming back.

Feature 2: Smart Contracts

DEX is powered by smart contracts. Smart contracts automatically execute a trade without any intermediary. These are called smart because they execute trades based on predetermined rules and play a vital part in the platform’s behavior in a transparent way. In simple words, smart contracts serve as the trust layer between the user and the platform.

For many years, the most damaging cyber attacks have targeted weaknesses in smart contracts, leading to over $6.45 billion in losses. In the first half of 2023 alone, approximately $471.4 million was stolen on chain. Today, strong smart contracts limit that risk and save users as well as liquidity providers from an attack.

The tech stack can differ depending on your developers’ skills and needs. Our IdeaSoft team has experience in blockchain solutions development, and we know what we are talking about. Choose wisely, and you will not face serious challenges during or after development.

Feature 3: Bento Box UI/UX

Among the aspects of designing DEX, UI/UX is among the least discussed. No matter how decent the platform might be from a technological point of view, it’s incapable of evading repulsing users with a confusing interface.

Bento Box UI/UX is about minimalism in a modular approach to providing users with as clean and intuitive experience as possible, concealing a far more complex entity in the background. However, you are free to use any other UI/UX trends in DEX development.

A well-thought-out user interface increases user engagement and retention. It should be painless for any user to navigate the platform and become a liquidity provider, trader, or staker. At the same time, businesses should consider the DEX development price, as custom UI/UX design can significantly impact overall costs while enhancing user adoption.

Remember that a well-designed UI enhances UX and encourages more users to engage with your platform. This is especially relevant for custom DEX development.

We’re always setting the bar high by putting the user experience front and center when developing DEXs. The more minimalistic yet elegant the design, the less friction there is. This increases user satisfaction and retention rate.
Herman Stohniiev, CTO and co-founder of IdeaSoft

Feature 4: KYC/AML Processes

KYC and AML processes are key enablers that support the long-term survivability of your DEX in these times of rising regulations. These steps keep your platform safe from fraudulent activities and help meet regulatory standards so that your platform can continue to function in most jurisdictions.

Don’t you know the difference between KYC vs KYT? While KYC confirms that the users are verified, AML attends to the monitoring and reporting of suspicious activities. These processes might be tedious. However, they do build trust and ward off legal risks to the platform.

Feature 5: Privacy Policies

The best policy would include transparency in collecting, processing, and storing methods of data. Key sections to include in a privacy policy:

Data collection methods. Clearly explain what user data you collect and for what purposes.
User consent. Make users aware of the information gathered from them and request their consent in case of need.
Third-party services data. Mention whether the data are shared with any third-party service.
Data security. Describe how security incidents involving user data are prevented.

Nowadays – following all new crypto market regulations coming into force, each DEX needs a solid privacy policy. It will protect your users and ensure that you comply with global regulations and data protection policies, like GDPR.

How to Overcome Challenges with IdeaSoft

With years of experience in AMM development, our team has refined and perfected the technology to address common pitfalls like impermanent loss, slippage, and smart contract vulnerabilities. As one of our greater achievements, we should underline the development of Orderly.Network – an infrastructural layer for DEXes within the NEAR blockchain ecosystem.

It’s a powerful NEAR-based solution with enterprise-grade liquidity and an order-matching engine on the board. This ecosystem has generated over $240 million in total trading volume and has great development potential in the DEX industry.

Our custom AMM solutions are designed to navigate the complexities of the crypto market, ensuring stable, efficient, and secure trading environments. By understanding and tackling the challenges inherent in AMM systems, IdeaSoft helps clients bypass potential pitfalls, allowing for a smoother, more reliable trading experience. Feel free to hire custom AMM features developers at IdeaSoft!

Speak with our team to turn your DeFi idea into a profitable reality!

Let us help you figure everything out, and correctly draw up the requirements for your project

Last Thoughts: Tech Stack Recommended & Other Security Measures

When it comes to building a secure DEX, the selection of the appropriate tech stack and the implementation of security measures play a vital role. In our opinion, one should stick to the proven tech stack: Solidity for smart contracts, Ethereum, or other reputable blockchain networks, while securing oracle solutions with Chainlink.

For robust and scalable decentralized exchanges, many developers rely on Ethereum and Binance for DEX due to their strong ecosystems and flexibility.

Besides that, a serious approach to following the best security practices will make a platform safe and reliable for its users. We have a separate article about top CEX security features. Below is a table outlining key security measures you should implement in DEX.

	Security Measure	Components
Preventive Measures	Regular Security Audits	Conduct third-party audits on smart contracts and platform infrastructure.
	Code Reviews	Continuous manual and automated code reviews to identify vulnerabilities.
	Secure Development Practices	Use secure coding standards and best practices during development.
	Encryption	Encrypt sensitive user data, transactions, and private keys.
Detection Measures	Real-Time Monitoring	Implement systems for real-time monitoring of transactions and activity logs.
	Intrusion Detection Systems (IDS)	Set up IDS to detect unauthorized access or suspicious activities.
	Anomaly Detection Algorithms	Use machine learning algorithms to spot unusual patterns in user behavior.
Reactive Measures	Incident Response Plan	Have a predefined plan to address potential security breaches swiftly.
	Regular Software Updates	Keep all libraries, dependencies, and software components up to date.
	Bug Bounty Program	Encourage ethical hackers to report vulnerabilities in exchange for rewards.

We recommend you order an external audit from our IdeaSoft team. We will provide an unbiased assessment of your code’s security and reliability. Our developers have enormous expertise in AMM, DeFi, DEX, Lending protocols, etc. We have a crypto exchange case study where we showed all the processes.

Summary

Uniswap is an open-source protocol created by Hayden Adams and now controlled by DAO. For the first time, it allowed users to trade assets on the blockchain in general and Ethereum in particular without losing out on the “spreads” that inevitably occurred during the exchange process on the then-existing decentralized exchanges.

Uniswap managed to realize the new mechanism of automatic market maker proposed by theorists. This mechanism is served not by a book of limit orders that require a fee for creation but by a new primitive—token pools that work on the basis of smart contracts and reward users for providing assets to them. Among the essential features of a decentralized exchange, liquidity pools and automated market-making play a crucial role in ensuring seamless and efficient trading. The source of this profitability is trader commissions paid on trades.

During its existence, the protocol has never lost its leading position in decimalized exchanges. It has been deployed on all major networks and is generally a benchmark of the DeFi protocol, as it fully meets the basic requirements of its field.

If you need assistance, we can help you create AMM features with Uniswap v4. You can hire our custom AMM features developers through the IT outstaffing model or outsource your custom AMM development to our professional team. Don’t hesitate to get in touch via the form below.

The Evolution of Plasma: Deep Dive into Plasma Technology

The overall scalability limits, which are the main challenge of the modern blockchain, create an objective demand for the emergence of mechanisms that can take up this challenge. The developed layer-2 solutions help to scale transfers by at least hundreds of times.

Want to build your solution on Plasma?

Our team has been working tightly with Plasma and INTMAX core teams during recent months. It helped us understand all the fundamentals this solution provides as well as the best ways to implement them for your product scalability. Let’s chat and set up the best toolset for your future unicorn!

Using Ethereum Plasma, the performance of the Ethereum blockchain increased to 1,500 transfers per second or higher. Of course, the throughput of Visa and Mastercard, with 24,000 transactions, is still a long way away, but the result is gradual. Blockchains strive for these results and do not stop developing and evolving year by year, the same does Ethereum Plasma.

In this article, we are going to dive deep into the fundamentals of Plasma technology and make a tech overview of the most significant features and milestones. Keep reading to discover this unique and steadfast layer-2 for Ethereum.

Table of contents:

Discovering Plasma: The Basics
Stages of Ethereum Plasma Evolution
Modern Challenges for Plasma Free
The Future of Plasma and Layer-2 Solutions
Summary

Discovering Plasma: The Basics

What is Ethereum Plasma? Plasma is a set of contracts executed outside the core Ethereum blockchain. The core network is offloaded by delegating tasks to secondary chains that will communicate and interact as sparingly as possible with the main chain. These networks are built on hierarchical subordination principles.

The overall structure is similar to a tree, where the core blockchain is the trunk, and additional channels represent branches and leaves. The possible number of nested levels has no potential limit. Plasma scales to a size whose limit is determined only by the functionality of the core blockchain.

The core blockchain (in our case Ethereum) records the final states of autonomously executed operations. The history of operations can be stored in the Plasma blockchain. The frequency of data output from Plasma “outward” is determined by the logic and conditions of the executed contracts. Another mandatory function of the core blockchain is providing objective dispute resolution information. All other operations are performed by “Plasma chains”.

The main characteristics of Plasma are high scalability and low transaction costs. It uses fraud proofs and exits to the root blockchain at any point in case of fraudulent activity. Each Ethereum Plasma release is developed with security in mind. Even in the case of pre-planned malicious actions of the majority of nodes, the reliability of transactions will not be jeopardized.

Stages of Ethereum Plasma Evolution

Plasma has undergone several iterations since its inception, each bringing new features and improvements. So, let’s discuss the evolution of Ethereum Plasma.

Plasma MVP (Minimum Viable Plasma)

The first implementation of Plasma focused on creating a minimally viable version that could be deployed quickly. It provided the foundational architecture for off-chain scaling.

Plasma MVP introduced the concept of child chains and off-chain transactions. This way, it set the stage for more advanced versions. However, while Plasma MVP was a breakthrough, it had limitations regarding scalability and flexibility.

Plasma Cash

Plasma Cash aimed to improve security by tokenizing assets on child chains. Each asset on Plasma Cash was unique. The risk of fraud and double-spending was reduced.

As a result, Plasma Cash appeared to be more secure but less flexible. Its use cases were limited.

Plasma Debit

This version of Plasma focused on microtransactions. It paved the way for rapid and low-cost payments.

Plasma Debit chains could process a high volume of small transactions efficiently. Funny enough, but while it was ideal for payments, its architecture was unsuitable for complex smart contracts.

Plasma Prime

Plasma Prime integrated zk-SNARKs to enhance privacy and security. Using zero-knowledge proofs allowed for private transactions on child chains.

This way, it started to offer advanced security but required more computational resources.

Plasma XT

Plasma XT introduced a more scalable model by allowing for the creation of multiple child chains. This version enabled higher transaction throughput thanks to chains that could be nested within each other.

Plasma XT appeared highly scalable but introduced complexity in managing nested chains.

Gluon Plasma

Gluon Plasma focused on cross-chain compatibility. With Gluon Plasma for Ethereum, assets were allowed to be moved between different blockchains.

This version enabled interoperability between the Ethereum protocol and other blockchains. As a result, Gluon Plasma increased flexibility but required careful management of cross-chain security.

Creating a solution on Plasma?

Our team works closely with the core founders of Plasma and knows all the ways to make your product on Plasma the best! Reach out to us and we will collect the best Plasma devs for your project.

Plasma Free

Plasma Free is fully compatible with the Ethereum Virtual Machine (EVM), allowing smart contracts to be executed on child chains. This compatibility enables the deployment of complex decentralized applications (dApps) on additional blockchain layers while preserving security and scalability. EVM support ensures smooth integration with existing Ethereum smart contracts, allowing developers to continue using familiar tools and programming languages.

With this support, Plasma Free greatly enhances opportunities for dApp on Ethereum and other innovative solutions that depend on smart contracts.

Modern Challenges for Plasma Free

Plasma Free has made significant strides in improving the scalability of based sequencing Ethereum, but it’s not without its challenges. These challenges must be addressed to ensure the long-term viability and effectiveness of the technology:

Data availability. In a plasma scaling Ethereum, not all transaction data is stored in the Ethereum main chain. This leads to situations where users or validators cannot access the necessary data to prove the validity of transactions. If data is missing or incomplete, it can undermine the security and integrity of the entire Plasma chain.
User experience. The complexity of Plasma technology in blockchain can create barriers to adoption. Users need to be able to interact with Plasma chains seamlessly without needing to understand the underlying technology.
Cross-chain interoperability. Plasma Free must be able to interact smoothly with other chains to support dApp on Ethereum, NFTs, and other cross-chain initiatives. Developing standardized protocols for cross-chain communication and transaction finalization is a key challenge that must be addressed as the technology matures.

But don’t worry. The team behind Plasma Ethereum is actively working on all these challenges.

The Future of Plasma and Layer-2 Solutions

The future of Plasma is highly promising and closely tight up with the development of Ethereum and Intmax (the team behind Ethereum Plasma) – together they shape the future of cryptocurrency. And along with that, as the market evolves, we can see a list of implementations coming ahead.

Integration with Other Layer-2 Solutions

Plasma is just one of many Layer 2 solutions aimed at scaling Ethereum. Other technologies like Optimistic Rollups, zk-Rollups, and state channels each offer different advantages. The future likely involves a layered approach, where Plasma coexists and interoperates with these other technologies.

Developers will choose the best-suited Layer 2 solution based on their specific needs, leading to a more diverse and robust Ethereum ecosystem. Plasma’s flexibility and ability to work alongside other solutions will be vital in this multi-layered future.

Expansion Beyond Ethereum

While Plasma was developed with Ethereum in mind, its potential applications extend beyond the Ethereum network. As more blockchains adopt smart contract functionality and face similar scalability challenges, Plasma could be adapted to work with these networks.

This expansion could see Plasma becoming a universal Layer 2 solution applicable to various blockchain ecosystems. However, this will require significant development to ensure that Plasma can be securely and efficiently integrated with different consensus mechanisms and network architectures.

Adoption Across Industries

As Plasma Etereum technology matures, its adoption will likely spread across various industries beyond just finance and technology. Industries like supply chain management, healthcare, and gaming could benefit from the scalability and efficiency offered by Plasma. Realizing this potential will require tailored solutions that meet the specific needs of these industries, as well as educating stakeholders on the benefits of adopting Plasma-based systems.

Summary

Plasma scaling in blockchain provides the efficiency that Ethereum needs to support its growing ecosystem. Our team is deeply involved in this evolution, offering tailored Plasma solutions to meet the unique needs of our clients. If you’re interested in exploring Plasma for your projects, don’t hesitate to reach out.

Plasma vs. Rollups: The Best Layer 2 Solution

Building a decentralized exchange (DEX) on Ethereum? You’re probably facing high transaction fees and sluggish speeds. With Layer 1 networks often congested, developers are turning to Layer 2 solutions like Plasma and Rollups to scale their DEXs efficiently. But how do you choose between Rollups vs Plasma for DEX? This article deeply compares Plasma and Rollups, aiming to guide developers toward the most effective solution

Understanding Layer 2 Solutions

Layer 2 solutions act as extensions of the base blockchain, such as Ethereum, to improve transaction speeds and reduce costs. They achieve this by processing transactions off the main chain (Layer 1) while still relying on it for security.

Plasma and Rollups are the two primary Layer 2 technologies used today. Still, they function in distinct ways. Plasma creates “child chains” that operate independently but periodically submit proofs to the main chain. On the other hand, Rollups bundle multiple transactions into a single batch that is then recorded on the main chain.

Comparison of Plasma and Rollups technologies | The process of how transactions are handled in Plasma and Rollups

You can find the Comparison Table for the Layer 2 solutions at the end of this article.

Plasma: A Closer Look

Plasma is a framework that allows for the creation of child chains. Each can process transactions independently. These chains periodically report back to the Ethereum mainnet, which is the ultimate arbiter. One of Plasma’s core features is its exit mechanism. It allows users to withdraw funds from a child chain to the main chain if needed.

Why is Plasma back on the agenda:

Improved security. By integrating with ZK-proofs, Plasma can provide greater transaction security, which was one of the main problems with early versions of this technology. This helps to solve the problem of fraudulent transactions and provides fast confirmation.
Cost reduction and fast execution. New technical solutions, such as static Plasma chains, can significantly reduce transaction costs and increase the speed of their execution.
Scalability for simple transactions. Plasma remains a great solution for projects requiring high throughput for simple transactions such as payments or exchanges.

Plasma’s scalability makes it an attractive option for a decentralized exchange that processes a high volume of trades with minimal latency. The technology’s ability to handle large transaction volumes without burdening the Ethereum mainnet can be a game-changer for decentralized trading platforms.

Nevertheless, while secure, the complexity of managing multiple child chains can introduce operational overhead.

The founder of Ethereum, Vitalik Buterin, recently emphasized that Plasma, although it has lost popularity due to certain technical limitations, is worthy of attention in light of recent advances in cryptography and blockchain technologies. In particular, the growing interest in Zero-Knowledge proofs (ZK-proofs) and new approaches to decentralized solutions can solve many of the problems that Plasma faced in the past. We support the idea that Plasma is the future of DEX.

Rollups: A Deep Dive

Rollups are another Layer 2 solution that improves scalability by bundling transactions together. There are two main types: Optimistic Rollups and zk-Rollups:

Optimistic Rollups assume transactions are valid by default and only run fraud proofs if a challenge is raised.
zk-Rollups uses zero-knowledge proofs to ensure that all transactions in a batch are valid before they are posted to the main chain.

Rollups offer a robust security model by keeping most of the computation off-chain while storing the data on-chain. This means they inherit Ethereum’s security while still achieving significant scalability.

Advantages of Rollups:

High throughput. Rollups can process a large number of transactions quickly and efficiently.
Low latency. Transactions are confirmed faster than on the main chain, improving user experience.

Any Layer 2 solution rollup still requires interaction with the Ethereum mainnet, meaning they are not entirely free from Layer 1 fees. Moreover, zk-Rollups, while highly secure, can be computationally intensive and require specialized knowledge to implement effectively.

Plasma vs. Rollups: A Comparative Analysis

Feature	Plasma	Rollups
Plasma vs Rollups Scalability	High (with child chains)	High (with transaction batching)
Plasma vs Rollups Transaction Costs	Lower (offloads transactions to child chains)	Lower (bundles transactions together)
Plasma vs Rollups Security	Dependent on exit mechanisms	Strong, inherited from Ethereum
Plasma vs Rollups Implementation Complexity	High (managing child chains)	Moderate to High (depending on type)
Plasma vs Rollups Performance	Fast on child chains, slower exits	Faster confirmations, instant finality with zk-Rollups
Plasma vs Rollups Technology	Child chains, exit mechanisms	Transaction batching, fraud proofs (Optimistic) or zero-knowledge proofs (zk)
Plasma vs Rollups Use Cases	High-volume DEXs, gaming platforms	General-purpose DEXs, DeFi applications

For DEXs, the choice between Rollups vs. Plasma advantages depends on the platform’s specific needs. If scalability and low costs are the highest priorities, Plasma is the better fit, especially for platforms expecting high transaction volumes. However, Rollups, particularly zk-Rollups, offer a compelling solution for those looking to balance security and performance.

How Plasma Free Solves Key Challenges

Plasma Free addresses a major limitation of traditional Plasma technology: the lack of support for complex smart contracts. Previously, Plasma was mainly used for simple transactions like payments, limiting its utility in more sophisticated applications such as decentralized exchanges (DEXs).

The introduction of Plasma EVM changes this by allowing smart contracts to run on Plasma while staying compatible with the Ethereum Virtual Machine (EVM). This means developers can take advantage of Plasma’s low transaction fees and quick processing without losing the benefits of Ethereum compatibility.

Plasma Free | Plazma EVM | Smart contacts | Etherrum Virtual Engine (EVM)

With Plasma EVM, DEXs can now benefit from Plasma’s speed and low costs while still using advanced smart contract functionality. This makes it possible to build fast and cost-effective DEXs without compromising Ethereum’s security and capabilities. Therefore, Plasma Free with Plasma EVM is an ideal solution for developing efficient and scalable decentralized exchanges.

A practical example: DEX on Plasma Free

Why Plasma Free? Based on Vitalik Buterin’s recommendations, DEX on Plasma Free offers no fees, fast transaction execution, and instant withdrawals. This solution is ideal for users who expect simplicity and accessibility without compromising speed and efficiency.

We at IdeaSoft are developing DEX in partnership with INTMAX, the company behind Plasma Free.

The Perpetual DEX, called JibX, will offer near-zero transaction fees, restocking, and leverage up to 250x. It will also have an on-chain matching engine and on-chain settlement with layers of accounts backed by Plasma Next.

JIBx uses Plasma Next for the settlement and account layer, providing privacy, low fees, security, and scalability. One of the features of the perpetual DEX is the on-chain limit order book, which uses a black and red tree sort. It is an efficient mechanism that uses EVM unchain as the data layer. This strategic choice significantly reduces transaction costs while increasing the number of transactions per second (TPS), setting a new standard for DEX technology.

INTMAX Co-founder Leona Hioki commented, “The IdeaSoft team is highly talented and professional, with unmatched experience in financial trading in general and virtual currency in particular. I am confident that together, we can create a product of exceptional quality. It is a great honor to work with them.”

Thanks to new technological advances, Plasma is returning to the scene as an effective solution for scaling, especially for simple transactions. Vitalik Buterin emphasizes that this approach should not be dismissed, as it can be the key to solving current blockchain problems, such as high transaction costs and low scalability.

Thus, Plasma, including Plasma Free, is becoming an important option for projects requiring high performance and low costs, especially for platforms such as DEX. Considering the recommendations of the Ethereum founder, it is worth carefully considering the possibilities of this technology in your project.

Conclusion

Choosing the right Layer 2 solution is imperative to build the DEX platform. Plasma and Rollups each bring unique strengths, and the decision should align with your platform’s specific requirements. Let’s sum up:

If your project is focused on simple, high-frequency, low-cost transactions, Plasma (including Plasma Free) is the perfect choice. This is especially true for micropayments or DEX, where speed and no fees are important. NOTE: Plasma already exists to create smart contracts – Plasma Free.
Projects requiring complex smart contract logic can consider Optimistic Rollups, which provide more flexibility but have some withdrawal delays.
If your project requires high-speed transaction confirmation and maximum security, ZK-Rollups may be the best choice, but it has limited capabilities for complex smart contracts.

If you’re unsure which path—Plasma or Rollups for DEX—to take, our team can provide deeper insights and custom solutions tailored to your needs. Contact us today to start optimizing your DEX with the right Layer 2 technology.

Use Cases of Shared & Based Sequencing, Smart Wallets

Businesses face increasing pressure to adopt advanced blockchain solutions to enhance operational efficiency and mitigate risks. Traditional transaction sequencing methods often fail to meet the speed, security, and compliance demands. According to Capital One Shopping, 49% of global online purchases in 2022 were made using digital wallets. These numbers show the growing reliance on innovative financial technologies.

Shared Sequencing, Based Sequencing, and Smart Wallets offer innovative ways to address current challenges. These technologies are indispensable for forward-thinking FinTech companies. We have developed a non-custodial Dollet wallet and know all the intricacies of this topic.

Our article delves into the functionalities and strategic applications of these top blockchain solutions in FinTech based on our experience. We will explore how these technologies can empower businesses to streamline operations, mitigate risks, and stay ahead in the competitive fintech market.

Overview of Shared Sequencing

Shared Sequencing is a blockchain technology that optimizes transaction processing by distributing the Sequencing of transactions across multiple nodes. This decentralized approach enhances financial transactions’ efficiency, security, and speed.

The idea of shared Sequencing arose with rollups, which are Layer 2 scaling solutions for Ethereum and other smart contract platforms. Rollups enhance blockchain scalability and throughput by processing transactions off-chain. They gather multiple off-chain transactions into a bundle and record only the net state update on-chain.

Rollups achieve this in two main ways:

Optimistic Rollups. These assume transactions in a bundle are correct unless proven otherwise. Transactions are finalized once a challenge period passes.
ZK-Rollups. These use zero-knowledge proofs to verify the correctness of a transaction bundle’s state update. Transactions are finalized once the bundle is recorded on the blockchain.

In both methods, transactions occur off-chain and are bundled into smaller on-chain transactions. A sequencer’s role in a rollup is to organize these transactions into a bundle and generate the proof or state update for the bundle before handing it off to the proposer, who generates the new state root.

Overview shared sequencing, blockchain sequencing | Use Cases of Shared & Based Sequencing, Smart Wallets

Top 3 Advantages of Shared Sequencing

Here are three main advantages of shared Sequencing.

Greater Efficiency

Decentralized sequencers allow blockchain networks to scale effectively by distributing transaction loads. As transaction volumes increase, this technology ensures the system can handle the demand without compromising performance. For FinTech companies, this means they can support more users and transactions without experiencing slowdowns.

Improved Security

Shared Sequencing enhances security by decentralizing the sequencing process. It makes it more difficult for malicious actors to manipulate transaction orders or execute attacks. This decentralized approach ensures that transactions are verified and processed securely. They maintain the integrity of the financial system.

Real-Time Processing

One of the standout advantages of shared Sequencing is its ability to enable real-time processing. By distributing transaction sequencing, this technology reduces latency, allowing for faster transaction confirmations. Real-time processing can significantly improve user experience and operational efficiency in the fintech industry, where speed is crucial.

Based Sequencing

Based rollup aims to leverage the benefits of Layer 1 sequencing to overcome some limitations of standard rollup designs.

In the model used by based rollups, Layer 1 block proposers take on sequencing responsibilities for the rollup. Collaborating with Layer 1 searchers and block builders, the proposer can include the next rollup block in the upcoming Layer 1 block.

Cost-Effectiveness

Based Sequencing is designed to be cost-effective by reducing the need for extensive computational power. Batching transactions minimizes resource consumption, resulting in lower operational costs. This approach also decreases the overall energy consumption and computational load, making it a sustainable and affordable solution for fintech companies.

Improved Throughput

The primary benefit of Based Sequencing is its ability to significantly increase transaction throughput. By processing multiple transactions at once, the system can handle a higher volume of transactions per second without compromising network security. This improved capacity is crucial for fintech businesses that must manage large transaction volumes efficiently.

Reduced Transaction Fees

By optimizing transaction processing, Based Sequencing reduces the complexity and resources needed, leading to lower transaction fees. This efficiency allows FinTech companies to offer more competitive pricing to their customers. Lower transaction fees enhance user satisfaction and attract more users to the platform.

Based sequencing | Use Cases of Shared & Based Sequencing, Smart Wallets

Exploring Smart Wallets

Smart Wallets are digital wallets equipped with advanced features like automation through smart contracts, integration with Ethereum dApps, and enhanced security measures. These wallets transform digital finance by providing users with more secure, efficient, and versatile financial management tools.

Automation

Smart wallets utilize smart contracts to enable seamless and secure automated transactions. Smart contracts are self-executing contracts with the terms directly written into code. They allow for automatic and trustless transactions. This automation reduces the need for intermediaries, decreases transaction times, and minimizes the risk of human error, making financial transactions more efficient and reliable.

Integration with dApps

Smart Wallets facilitate easy access to decentralized applications (dApps) within the blockchain ecosystem. This integration allows users to interact with various dApps directly from their wallets, whether for finance, gaming, social media, or other purposes. By providing a unified platform for accessing dApps, Smart Wallets enhance user convenience and promote broader adoption of blockchain technology.

Enhanced Security Measures

Security is a critical feature of smart wallets. They utilize advanced encryption and authentication methods to protect user funds and data. These measures include:

Multi-signature support
Biometric authentication
Hardware wallet integration

Users’ assets must be safe from unauthorized access and cyber threats in any DeFi wallet.

Decentralized sequencers, Smart Wallets | Use Cases of Shared & Based Sequencing, Smart Wallets

Conclusion

Shared Sequencing, Based Sequencing, and Smart Wallets offer transformative benefits for the fintech industry. These blockchain solutions address critical challenges and provide strategic advantages that significantly enhance operational efficiency and security. Key points:

Shared Sequencing increases scalability, improves security, and enables real-time processing capabilities. It is particularly effective in cross-border payments, digital wallet transactions, and fraud prevention.
Based Sequencing boosts transaction throughput, lowers operational costs, and reduces transaction fees. This solution benefits payment processing systems, blockchain-based supply chain management, and DeFi platforms.
Smart wallets enhance user experience through automation, facilitate easy access to dApps, and offer advanced security measures. They are essential for non-custodial wallets, automated payment systems, and integration with DeFi platforms.

For FinTech companies looking to implement these cutting-edge blockchain solutions, partnering with an expert like IdeaSoft can be invaluable. Our proven track record in developing advanced blockchain solutions (case) ensures that you can effectively leverage Shared Sequencing, Based Sequencing, and Smart Wallets tailored to your specific needs.

Contact us for a consultation on how these innovative blockchain solutions can be implemented to transform your business operations and stay ahead in the competitive fintech market.

Step-by-Step Guide to Building dApps on Solana

Want to build Solana dApps? Projects on Solana raised $89.2 million in Q1 2024 alone. These numbers surpassed the total amount raised in all of 2023. The demand for Solana-based dApps is undeniable. The growing market of investors, users, DeFi enthusiasts, NFT maniacs, and cryptocurrency traders makes Solana an attractive blockchain for your next project.

When choosing a blockchain for dApp development, consider scalability, speed, and cost. Solana addresses these challenges with unique features. This article will discuss Solana dApp development.

Step-by-Step Guide to Building a dApp on Solana

So, let’s discuss how to build a dApp on Solana in 10 steps.

Step 1: Set Strategic Goals and Objectives, Evaluate Solana’s Suitability for Your Project

Why our IdeaSoft team recommends you choose Solana for your decentralized app development:

Scalability. Solana’s architecture supports thousands of transactions per second.
Speed. Fast transaction finality ensures a smooth user experience.
Cost. Low transaction fees make it economical for both developers and users.

Before diving into development, establish clear goals and objectives for your dApp. Determine what you want to achieve and how Solana’s features can help. Solana’s high throughput, low transaction costs, and scalability make it ideal for various applications. You can develop many dApps on Solana, from DeFi platforms to NFT marketplaces.

Step 2: Assemble a Skilled Development Team

Building a successful dApp requires a team skilled in key technologies. Guarantee your team has experience with Rust, Yarn, Node.js, and Solana CLI. Ideasoft can provide skilled developers with expertise in these areas, ensuring a smooth development process. We offer:

Deep expertise. You get access to a pool of experienced developers with dozens of completed Web3 projects.
Optimized efficiency. We have built a streamlined development process thanks to knowledgeable team members.

If you need technical support, contact us.

Step 3: Design the dApp Architecture

What you must understand at this step:

Proper architectural planning avoids future bottlenecks.
Architecture must guarantee that the dApp can handle high user traffic and transactions.

Plan your dApp’s architecture carefully. Decide on the core components, data flow, and how users will interact with your application. This aspect influences performance and scalability.

Step 4: Develop Smart Contracts Using Rust

Smart contracts on Solana are mostly written in Rust. Begin by developing and testing your smart contracts locally. Ideasoft’s developers are proficient in Rust and can help create robust, secure smart contracts tailored to your needs. We can guarantee you:

Security. Dozens of Web3 projects under our belt allow us to write secure and efficient smart contracts.
Customization. We have tailored solutions to fit your specific requirements.

If you are curious about how Solana dApp development differs from Ethereum dApp, read our article on how to develop Ethereum dApp.

Step 5: Implement Frontend with React

Use React to create a responsive and intuitive user interface for the frontend. React’s component-based architecture allows for reusable code, making development faster and more efficient. We recommend you read our article about UI/UX tricks for better dApp user conversions.

Step 6: Integrate Wallet Functionality

Wallet integration is crucial for any dApp. Use Solana’s wallet adapters to connect wallets like Phantom or Sollet, allowing users to interact with your dApp securely. What you must pay special attention to here:

Security. You must secure wallet integration as much as possible to protect user assets.
Usability. You must guarantee easy and intuitive wallet connectivity.

For example, we worked extensively at this step when developing a decentralized insurance platform for BridgeMutual.

Step 7: Testing and Debugging

Thorough testing is essential to identify and fix any issues before launch. Use Solana’s local testnet for initial testing and gradually move to the mainnet. What you must guarantee:

Reliability. Ensure the dApp functions correctly under various conditions.
High performance. Optimize your dApp for high performance and low latency.

Our Ideasoft team can assist in rigorous testing to ensure your dApp is bug-free and performs optimally.

Step 8: Plan for Deployment and Scaling

Set up your production environment to prepare for deployment. Plan for scaling to handle increased user traffic and transaction volume. We at Ideasoft can provide insights and support for scalable deployment strategies. Read our case study about a decentralized staking protocol, Asymetrix.

Step 9: Launch, Monitor, and Maintain Your dApp

Launch your dApp on the Solana mainnet. Monitor its performance and user feedback closely. You need to ensure:

Real-time dApp maintenance. Ongoing support is important to keep the dApp running smoothly.
Constant monitoring. It is necessary to detect and resolve issues promptly.

Regular maintenance and updates are crucial to address any issues and improve functionality.

Step 10: Engage with the Community and Gather Feedback

Engage with your user community to gather feedback and build a loyal user base. User feedback is invaluable for improving your dApp and adding new features. This aspect will drive your Solana blockchain app development forward.

Advantages of Building dApps on Solana

Herman Stohniiev, CTO and Co-founder of IdeaSoft –

“The most compelling advantage of building on Solana is its unparalleled transaction speed. It ensures that users experience minimal latency and maximum efficiency. This speed combines with low costs and makes Solana an ideal choice for innovative dApp development.”

Scalability

Solana’s architecture allows it to handle thousands of transactions per second, making it one of the most scalable blockchains available. High scalability ensures that your dApp can grow without experiencing slowdowns or bottlenecks.

Low Transaction Costs

One of Solana’s standout features is its low transaction costs. Unlike other blockchains, where fees can become prohibitive, Solana’s cost-effective structure allows for affordable transactions. Thus, it is feasible to develop and maintain dApps without incurring high costs.

Fast Transaction Speeds

Solana is renowned for its lightning-fast transaction speeds. Block times are just 400 milliseconds, which translates to near-instantaneous transactions for users and contributes to the overall efficiency and appeal of your Solana dApp.

Flexibility and Customization

Solana’s flexibility allows developers to create highly customized Solana dApps. Its support for various programming languages, particularly Rust, enables developers to build unique features and functionalities. They can be easily tailored to specific project requirements. This feature also speeds up the Solana blockchain app development process.

Robust Security

Security is a top priority for any blockchain application. Solana’s robust security mechanisms protect your dApp against common vulnerabilities and threats, safeguarding user data and assets.

Growing Ecosystem

Solana boasts a rapidly growing ecosystem of tools, libraries, and integrations. This vibrant community and the wealth of resources available make development more accessible. Developers and Web3 projects get numerous opportunities for collaboration and innovation.

Active Community Support

Another significant advantage is the active and supportive Solana community. Developers can rely on community resources, forums, and collaborations to overcome challenges in building dApps on Solana.

Three examples of dApps on Solana

Here are 3 Solana projects we recommend you be aware of if you want to create a dApp on Solana.

Mango

Mango is a derivatives-oriented DeFi platform that offers loans, credit, and asset trading. Users appreciate Mango for its low commissions. The project aims to combine the efficiency of tools and high liquidity of centralized crypto exchanges with the advantages of the decentralized finance market.

Mango has a cryptocurrency—MNGO—which is a management token. With coins, platform users can vote on decisions regarding the next stages of the project’s development.

SolFarm (Tulip)

Tulip Protocol or Tulip Garden, formerly known as SolFarm, is a yield aggregator for cryptocurrency investors. It is a great example of successful blockchain dApp development. Users appreciate the project’s low fees, fast transaction speeds, and tools for increasing profits and earning from leveraged income farming.

In the spring of 2021, the project was launched by an anonymous group of developers. Despite the platform team hiding their names, they managed to raise $5 million from many investors, including Jump Capital, Alameda Research, Amber Group, Cadenza Ventures, CMS Holdings, and FinTech Collective.

Star Atlas

Star Atlas is a multiplayer blockchain game whose actions occur in 2620. Users interact with three “ruling factions” in the game: humans, androids, and aliens.

The developers tried to create a meta-universe with an open economy. Star Atlas launched in-game cryptocurrency ATLAS and management tokens POLIS.

Final Thoughts

Solana blockchain app development offers numerous advantages, from scalability and low transaction costs to fast transaction speeds and robust security. We have discussed in detail how to build a dApp on Solana. Following the steps outlined in this guide, you can harness Solana’s unique features to create a high-performing, user-friendly dApp.

If you’re looking for expert guidance and support in developing your Solana-based dApp, Ideasoft is here to help. Here are three reasons to choose our IdeaSoft team:

Proven expertise. Our team has extensive experience in blockchain development, particularly with Solana. We’ve successfully delivered numerous projects, ensuring high quality and performance.
Comprehensive support. From initial planning to post-launch maintenance, we offer end-to-end services to ensure your project runs smoothly and meets all your goals.
Innovative solutions. We pride ourselves on delivering innovative and customized solutions that align with your specific needs, leveraging the latest technologies and best practices.

Solana blockchain app development - Step-by-Step Guide to Building a dApp on Solana | IdeaSoft

For a deeper consultation on building your dApp on Solana and to see how we can help turn your vision into reality, contact the IdeaSoft team today. We’re eager to collaborate and help you succeed in the dynamic world of blockchain technology.

How to Build a Dapp on Ethereum Blockchain?

How to build an Ethereum dApp? Dapp is a decentralized application, which is only different from the apps we usually use (Instagram, Facebook, etc.) from a decentralization perspective. How can you understand this decentralization?

From the experience level, there is no manager in dApp; everyone is equal and supervises each other. From the technical level, traditional apps interact with the backend deployed on the server, while dApp interacts with the smart contract deployed on the blockchain. Need to know more? In this article, we will discuss how to make dApps on Ethereum along with examples of dApps.

Looking for experienced team to outsource dApp development?

Decentralized apps are applications built on a decentralized network, combining smart contracts and a front-end user interface. Note that Ethereum smart contracts are accessible and transparent to all EVM-compatible networks, so choosing Ethereum as your native platform is very convenient for your dApp future adoption and community growth. Let’s talk and define your development roadmap! Leave us a message and we will get back to you within 2 business days.

Table of contents:

DApp Fundamentals
Ethereum dApp Development Process
Challenges in Developing dApps on the Ethereum Blockchain
IdeaSoft Experience
Conclusion

DApp Fundamentals

DApp runs in the browser and is available to users through the Internet. From this perspective, it is not much different from ordinary Web2 programs, such as the pages of the website, web applications, etc. It is composed of some HTML pages and JS, which is what we usually call the front end. But let`s take a look at the dApp architecture.

how to make dApps on Ethereum, Ethereum dApp development tutorial, How to build a dApp on Ethereum, Ethereum dApp app development — *An overview of basic dApp architecture*

This will be a quick Ethereum dApp development tutorial for you:

Server. It is no different from traditional Web applications. It is responsible for providing and processing data, interacting with the front-end dApp, usually reading and writing databases, processing data and business logic, and performing other work. It may be written in Java, PHP, Go, Python, or other development languages.
Smart contracts. DApp architecture and traditional Web application architecture are different in the smart contracts part. Smart contracts are running on the blockchain of a binary code. Some blockchains are able to run smart contracts. For example, almost 90% of the smart contracts run on Ethereum. Smart contracts on Ethereum are usually developed using Solidity, and after compilation, it will become a piece of binary code, which is then deployed to Ethereum and can be invoked.
Oracles. Many dApps have special scenarios that require additional data to complete the closed loop’s work. Smart contracts can not actively obtain data. They can only passively accept data. And it doesn’t execute regularly. The only way to pry it into execution is for an external program to call its interface. Oracles automatically, in real-time, notify the smart contract on the blockchain of the results of some event to execute the automated task.

Most dApps are web applications that have added blockchain technology. However, they all correspond to the highest security standards because hackers are more dangerous here. This is why security can take the most significant time in the Ethereum dApp app development process.
We also wrote about building dApp on Solana.

Ethereum dApp Development Process

How to build a dApp on Ethereum? Let`s discuss below!

Define Your dApp Idea

The first step in dApp development is to brainstorm and define a clear purpose for your application. If you consider the current trends in Web3, you can find the best niche for you and quickly occupy it with your dApps. Examples of dApp categories:

Finance: DeFi platforms, lending protocols, and asset management tools.
Gaming: Blockchain-based games with in-game assets and token economies.
Social Media: Decentralized social networks with user-owned data.
Identity: Decentralized identity verification and management systems.

A proper discovery phase that clearly identifies the dApp idea can greatly reduce Web3 development costs for your further project.

Design Your dApp Architecture

Planning the architecture of your dApp involves designing both the user interface (UI) and user experience (UX). A well-thought-out design ensures a seamless interaction between the user and the application.

Front-end and back-end components must also be carefully considered. However, to make the best choice, you must be well-versed in all the Ethereum updates that change how the blockchain or Ethereum ecosystem works. Ethereum EIP-4844 is a primary example of such updates. For instance, this innovation has opened many new opportunities for dApps regarding efficient data pruning and management, scalability for a global transaction network, and enhanced user experience.

We have a great article discussing our case study on how to build a successful Web3 startup.

Want to launch a web3 product that will be successful?

IdeaSoft team has a track record of DeFi and crypto startups launches and we know what you need to launch with success. Let’s talk and define your product development roadmap!

Write Smart Contracts

Smart contracts are the backbone of any Ethereum dApp, executing the business logic in a decentralized manner. Solidity is the primary programming language for writing Ethereum smart contracts.

You must pay special attention to:

Security audits. Regularly audit your smart contracts to identify vulnerabilities and ensure robustness.
Gas optimization. Write efficient code to minimize gas costs, making your dApp more cost-effective for users.

Smart contracts like security testing can take up most of your Ethereum dApp app development time. Since they must be of the highest quality, they must be rigorously tested and developed with all the best practices and new threats in mind.

Develop the Front-End

The front-end of your dApp is the interface through which users interact with your blockchain application. Building an intuitive, responsive, and user-friendly front-end is crucial for the success of your dApp.

Popular JavaScript frameworks such as React and Vue.js are often used due to their flexibility, rich ecosystem, and ease of integration with Ethereum libraries like web3.js and ethers.js. These frameworks help in creating dynamic, single-page applications that can efficiently manage the interaction between the user and the blockchain.

We recommend you read our article about dApp UI/UX design tips that will help you make your customer journey as smooth as possible.

Testing and Deployment

Thorough testing is imperative before launching your dApp on the Ethereum mainnet. Testing methodologies you can use:

QA automation tools. Use AI to optimize test scenarios and speed up the testing process.
Unit testing. Test individual components of your smart contracts.
Integration testing. Ensure that all parts of your DApp work together seamlessly.
Testnet deployment. Deploy your dApp on Ethereum testnets like Goerli or Truffle to simulate mainnet conditions without the associated costs.

We recommend you read our article on the best practices for smart contract testing & debugging.

Security Considerations

Best practices we advise you to use for your dApp blockchain application development:

Regular audits. Conduct security audits to identify and mitigate potential vulnerabilities.
Code reviews. Perform peer reviews of your code to catch errors early.
Secure development practices. Follow best practices such as using well-vetted libraries and keeping dependencies up to date.

By following these steps, you can develop dApp on Ethereum that will outperform competitors.

Challenges in Developing dApps on the Ethereum Blockchain

Developing dApps on Ethereum involves several challenges, which can be broadly categorized into technical, financial, and operational challenges:

Latency. Transaction finality on Ethereum can take anywhere from a few seconds to several minutes, which can be a barrier for applications requiring real-time interactions.
Smart contract security. Writing secure smart contracts is notoriously difficult. Vulnerabilities like reentrancy, overflow/underflow, and improper handling of external calls can lead to significant financial losses.
Smart contract gas optimization. Developers must optimize smart contract code to minimize gas costs, which requires a deep understanding of the Ethereum Virtual Machine (EVM) and the gas cost of various operations.
Evolving tools and frameworks. The tools and frameworks for Ethereum development, such as Truffle, Hardhat, and Remix, are still evolving. Frequent updates and changes can challenge developers to maintain and upgrade their dApps.
Usability. Many dApps suffer from poor user experience (UX). The onboarding process, especially involving wallet setup and private key management, can be daunting for non-technical users.
Integration with existing systems. Integrating dApps with existing enterprise systems and workflows can be challenging due to differences in technology stacks and architectural paradigms.

Despite these challenges, the Ethereum ecosystem continues to grow and evolve, with ongoing efforts to address scalability (e.g., Ethereum 2.0, layer-2 solutions like Optimistic Rollups and zk-Rollups), improve development tools, and enhance security practices. Our team at IdeaSoft can help you develop dApp on Ethereum, considering all the innovations and best practices.

IdeaSoft Experience

IdeaSoft team is well-versed in dApp blockchain application development. Our dApps on Ethereum prove that.

Decentralized staking protocol Asymetrix

Asymetrix protocol is an innovative decentralized and non-custodial platform that enables users to stake their stETH with a distinctive method of generating yields. In addition to decentralized protocol development, we worked on a DAO and protocol tokens for governance and airdrop possibilities.

defi staking platform development — *A designed preview of Asymetrix protocol main page interface*

After releasing Asymetrix, our cooperation was not stopped. Together with the Asymetrix team, we optimized the platform and released the Asymetrix V2. It has groundbreaking improvements, including the introduction of an additional token, esASX, and a BOOSTS system designed to reward LPs within the protocol’s ecosystem.

Global marketplace BridgeTower

BridgeTower is a global marketplace built on a proprietary technology stack. We introduced KYC/KYB, anti-money laundering (AML) by MasterCard, wallet whitelisting, proof-of-reserves, custodial services, and fiat-to-crypto on and off-ramping capabilities.

NFT marketplace development, NFT development, Ethereum development — *A designed preview of BridgeTower main page and mobile interfaces*

We also worked on the NFT development solutions for NFT marketplace with ERC-1155 minting and collection factory contracts, a dashboard portfolio with the total amount of all assets, and asset and wallet management. Overall, this project was delivered to the client in 10 months.

Want to see more case studies of startups we developed & launched?

Web3 gambling platform Moonwin

Moonwin is a pioneering cross-chain DeFi platform (casino 3.0). We have successfully implemented a platform that operates on Polygon, Ethereum, and BNB Chain blockchains. Our IdeaSoft team has contributed to every stage of development, from inception and the creation of the MVP to the realization of Moonwin V1 and Moonwin V2.

Crypto gambling development, web3 gaming development, web3 crypto casino — *A designed preview of Moonwin main page interface*

The most difficult challenge for us was game mechanics development. The development of fair and entertaining casino games that leverage blockchain technology presents unique challenges.

Ensuring transparency, randomness, and provable fairness in game outcomes while maintaining gameplay dynamics and user engagement requires innovative game design. However, we had great assistance from the client side, which helped us constantly provide innovative and unconventional strategies to be tested and further integrated. Our team leveraged web3 staff augmentation to efficiently scale our development efforts and deliver a high-quality product on time.

Conclusion

In this article, we have discussed how to develop Ethereum dApp along with examples of Ethereum dApp developed by our IdeaSoft team. Ethereum blockchain and ecosystem are actively evolving, and it is vital to be aware of all the innovations and changes.

As a trusted blockchain software development company, we provide tailored solutions to bring your Ethereum dApp ideas to life with efficiency and expertise.

If you are looking for a reliable Ethereum dApp development company, feel free to contact us today. We are eager for new challenges and projects!

What is SocialFi? Top SocialFi Projects 2024

The growing popularity of Web 3.0 and DeFi projects is due to people’s tiredness of centralization. They do not want to overpay intermediaries for services that can be obtained directly. Banks and institutions are focused on financial gain rather than the good of the people. This explains the popularity of blockchain projects that offer independence from third parties.

Decentralization is also leading to the emergence of social networks of the future, which will offer independence from corporations that make money from content. Web3 trends are already underway, and the SocialFi projects are prime examples. In this article, we will discuss what is SocialFi and show you the top SocialFi projects in 2024.

How SocialFi Can Help Your Brand?

SocialFi fosters brand visibility and adoption by incentivizing engagement through token rewards. Fans can earn tokens for participating in discussions, sharing content, or contributing ideas. Integrating social features with decentralized finance can create a vibrant ecosystem where members feel connected, valued, and incentivized to actively participate in the brand’s growth.

Thinking of implementing socialfi features for your brand or product? Let’s connect and create a correct list of requirements for your project!

Table of contents:

What is SocialFi?
Key SocialFi Features
Top SocialFi Projects in 2024
Future of SocialFi
Summary

What is SocialFi?

SocialFi stands for Social Finance. This industry consists of platforms that combine the principles of social media and DeFi.

Users can control their data and generate revenue through content and advertising on this platform. This can solve many of the problems of Web 2.0 social networks, such as privacy protection and freedom of speech.

In SocialFi projects, users do not have to provide their personal data when registering, as the platform does not collect or store them. This ensures that users’ privacy is protected. In addition, the platform allows users to express their thoughts by controlling dangerous content.

What is SocialFi crypto in numbers? According to DappRadar research, the transaction volume in the SofialFi industry has grown 305% in 2023 compared to 2022. The rise of SocialFi is revolutionizing how we think about ownership of social media data and online identity.

If you are looking for a reliable IT partner, our IdeaSoft team can help you with social media app development!

Why do social networks and decentralized finances are a killing combination?

So far, we are living in a Web 2.0 era in which a massive disruption to the Internet has a negative impact on quality of life. For example, in the fall of 2021, there was a massive outage of WhatsApp and Instagram that brought retail, news media, and medical facilities around the world to a halt for hours.

The Web 2.0 economic model is being replaced by SocialFi, based on Web 3.0. It demonstrates the value of each individual and provides an opportunity to profit. This fundamentally changes the approach to content creation and distribution:

Users become direct beneficiaries
Creators of social platforms get tools that monetize user contributions
Users themselves are fairly rewarded with tokens for time and effort spent on social presence on the web

According to CoinGecko, SocialFi coins have a combined market cap of over $5 billion and a 24-hour trading volume of over $200 million as of 12th May 2024.

Key SocialFi Features

The main reason for SocialFi’s growing popularity is that SocialFi crypto projects can address the flaws of Web 2.0 social networks. Let’s look and compare traditional online media information flow versus blockchain based onces.

Now when you see how the traditional online social media works, let’s look in the process when the blockchain technology is involved. Check the table below.

As you see, the introduction of blockchain foster transparency and creates additional reward system opporutities which is not videly used or applied in terms of traditional online media user engagement activities.

Among the key problems that SocialFi projects can solve are:

Personal information protection and user privacy. When registering on Web 2.0 social networks, users are forced to provide their personal information, which can be stolen by hackers or used by companies for marketing purposes. In contrast, SocialFi’s platform uses a decentralized approach that does not require submitting personal information.
Freedom of speech. Decentralized social networks, which are controlled by network members, lack censorship and user blocking by a central authority. However, a special algorithm based on artificial intelligence is created to control dangerous content.
Digital copyright. The SocialFi platform enables automated copyright systems that allow authors to sell their works directly to buyers without intermediaries. Content creators get paid in full for their work, and users can be assured that they are buying original content and not infringing on copyright.

SocialFi features are attracting new users to the industry. It is gaining popularity thanks to its decentralized nature, which solves the key problems of Web 2.0 social networks. Nevertheless, it is as complicated to develop the SocialFi platform as to develop the DeFi exchange platform.

What challenges does SocialFi face?

A great challenge that SocialFi industry faces is scalability. You probably know that the more users join the blockchain, the slower it works. For social networks, high-speed content processing is critical. SocialFi has the task of overtaking Facebook, where 2 billion users post 510,000 comments, like 4 million posts, and upload 136,000 photos daily. This is already a huge volume. And if you add a financial system to it, it is a real challenge.

One of the protocols (DeSo) scales better than others, as it was specially created for SocialFi’s needs. The developers claim the network can process 80 posts per second for 4 million users, while X processes 6,000 posts per second for 300 million users.

Top SocialFi Projects in 2024

Perhaps the most notable representatives of the SocialFi sphere can be considered metaverses. Users there are anonymous and create and monetize content daily. Below is a top SocialFi crypto list from our IdeaSoft team.

CyberConnect

CyberConnect is a pioneering decentralized social graph protocol putting users and developers in charge of their digital presence, content, and relationships using cutting-edge Web3 tech. Built on Ethereum and other EVM-compatible blockchains, it paves the way for decentralized social applications (dApps). With CYBER tokens, users wield governance power, cover transaction costs, and snag premium usernames (CyberProfiles), all of which are vital for steering the ecosystem’s dynamics and operations.

This SocialFi crypto project harnesses innovative technologies like account abstraction to streamline user onboarding and ensure seamless interaction across various blockchains, thus elevating user experience and breaking down the usual barriers to blockchain entry. By prioritizing accessibility, CyberConnect isn’t just creating a user-friendly space but also paving the way for widespread adoption.

Entre

Entre is a social network for entrepreneurs and investors. This crypto SocialFi platform allows them to communicate with each other, find investment opportunities, and make deals. Entre uses blockchain technology to ensure secure and transparent transactions between users.

Users can find jobs and employees on Entre, share experiences and ideas in virtual co-working spaces, hold general meetings, find investors, and work remotely. The platform allows monetizing content through paid broadcasts, posts, comments, and private business events.

Cheelee

Cheelee is one of the top SocialFi projects 2024. It is a video platform on the blockchain. Content makers create and publish short videos and are paid for doing so. Other users are paid to watch videos in their feeds.

In Cheelee, every new user gets free NFT points. These points have certain features, such as attention span, battery, memory, and frame, which affect how many NFT points a person will earn for watching the feed. The points can be upgraded and improved with a platform token, which is farmed for watching content.

Qrolli

Qrolli’s Quest Hub is an innovative gaming system with many challenges and rewards to engage users. Participants earn QR tokens to access exclusive trading features. Users monetize their social content with dynamic NFTs and have the opportunity to work together to foster partnerships in the cryptocurrency community.

Qrolli is structured completely differently than other SocialFi crypto projects. It was created by combining the best elements of social networks with a system of decentralized finance. Qrolli guarantees users security, transparency, and full control over their assets to an extent that is unparalleled in traditional social networks.

DeSo

DeSo was created with the goal of scaling SocialFi applications to serve 1 billion users. The protocol is named after the first letters of the words “decentralized” and “social”. Developers around the world are creating other similar applications using the DeSo blockchain.

This ecosystem is suitable for NFT artists, software developers, and investors. It comprises a full-featured DAO builder, metaverse, NFT marketplaces, voice and video platforms, and search engines. A separate platform connects DeSo with X and other social networks.

Here, you can blog, use messenger, make stories, and more. In addition to the standard set that conventional social networks have, DeSo provides opportunities to create a wallet, earn tokens and invest them in projects, buy and sell NFT, participate in NFT auctions, and receive royalties. DeSo hosts online games, contests, and meetups. Moreover, DeSo enables users to explore various web3 apps to earn money, enhancing its appeal to a broader audience.

Future of SocialFi

Many companies that operate in traditional social networks are beginning to actively invest in innovative social blockchain projects for obvious reasons:

SocialFi is a fundamentally new concept of user interaction on which the Web 3.0 paradigm is based
The gradual decentralization of finance accelerates the creation and development of SocialFi projects managed by users
The potential of Social Finance protocols is enough to solve the key problems of traditional social networks

CITE According to former Binance CEO Changpeng Zhao, “In a Web3 environment, the connection between values, people, and economies is essential, and if these three elements come together to build an ecosystem, that will accelerate the mass adoption of the blockchain technology and crypto”.

The intensive formation of the ecosystem will accelerate the mass adoption of crypto and blockchain technologies. The world needs new-format social projects that empower users and incentivize them to join the ecosystem. The future of SocialFi is bright.

Summary

The transition from Web 2.0 to Web 3.0 and traditional social networks to SocialFi is inevitable, as the need to protect users’ interests is becoming increasingly acute. What problems will the use of SocialFi solve:

Partially eliminate censorship and allow more free speech
Increase privacy because the network is not controlled by corporations
Massive amounts of personal data will not end up in monopolist databases
Users have full control over the distribution of their content and monetization
Integrated digital tokens become a fast and secure transaction method
NFT ensures the integrity of content and ownership
Securely protects accounts from fraudsters
Guarantee that moderators will not deactivate a user’s account

For SocialFi to stay ahead of the competition, it needs to constantly evolve and improve the system to retain users who came during the first wave of popularity and attract new ones. If you have an idea of developing the best blockchain for SocialFi industry purposes, feel free to investigate our blockchain development services. Our IdeaSoft team is ready to help you with any of your Web3 project ideas.

How to Build a Cross-chain DeFi Platform? A Complete Guide

The Web3 ecosystem is becoming more extensive with each passing year. Thousands of dApps run on blockchains and Layer 2 (L2) solutions. However, these disparate networks are not able to communicate effectively with each other. Cross-chain in crypto solves this problem and allows assets to be transferred from one blockchain to another. It stimulates ecosystems to engage with each other and think of launching a cross-chain DeFi platform. Today, we discuss how to develop cross-chain DeFi platform and what features it must have.

What are the key advantages of using a cross-chain DeFi platform over a single-chain platform?One of the main advantages is more straightforward interoperability across different DeFi protocols, which allows for seamless trading, lending, and exchanging of assets. Another advantage is moving collateralized digital assets from the classic chains blockchain to modern ecosystems such as Kadena, Stllar, Cardano, Solana, or layer-2 solutions. Other advantages include improved scalability, liquidity increasement, and better storage capacity.

Considering building a cross-chain solution or develop a cross-chain bridge for your current DeFi platform?

Let’s talk and define the specification for your project together!

Table of Contents:

What Is a Cross-chain DeFi Platform?
Core Components of a Cross-Chain DeFi Platform
Cross Chain Defi Platform Development Process: X Main Stages
Summary

What Is a Cross-chain DeFi Platform?

Cross-chain DeFi combines numbers of financial applications that exists through various blockchain ecosystems. It is leveraged by cross-chain technology that enables the seamless transfer of data and tokens across various blockchains. This interoperability is facilitated by cross-chain bridges, acting as gateways for token exchanges among multiple chains.

What Is a Cross-chain Bridge?

A cross-chain bridge is a decentralized protocol designed to transfer assets and information between blockchains. Such cross chain bridge development solutions can send tokens of almost any kind, including NFTs.

What to Consider Before Building Cross-Chain DeFi Platform

The demand for interoperability between blockchains has become increasingly evident. However, before diving headfirst into building cross-chain DeFi platform, there are several crucial points you should keep top of mind.

Market Need

The fundamental driver behind any successful project is fulfilling a market need. In the context of cross-chain DeFi platforms, the need is evident. With the increasing complexity of blockchain ecosystems and liquidity fragmentation across different networks, users seek seamless interoperability solutions. Here are the main points that drive popular DeFi projects to think about cross-chain features:

encourage an exchange of liquidity between blockchains
encourage an exchange of users
faster adoption of new technologies
faster knowledge-sharing among crypto-experts
encourage competition in the DeFi space.

In the current market situation, the DeFi project must consider cross-chain opportunities to be competitive. Now, almost everything is cross-chain, and nobody wants to use only one blockchain with tokens that nobody needs except for that network. This is why cross-chain peculiarity is among Web3.0 trends.

Technical Considerations

Developing a cross-chain DeFi platform involves navigating technical challenges. Interoperability protocols, smart contract development, and cross-chain bridge development are just a few of the technical considerations. They require meticulous planning and execution. You must:

Choose the right blockchain infrastructure
Implement secure cross-chain communication protocols
Ensure scalability

With these points in mind, your cross-chain DeFi project will gain long-term viability and success.

Regulatory and Legal Landscape

The regulatory and legal landscape surrounding DeFi is still evolving. Operating in multiple jurisdictions adds another layer of complexity.

Before building a cross-chain DeFi platform, you must examine the country’s legal framework. If you want to build a DeFi project for the USA market, you must ensure that the chosen country of registration allows that. We at IdeaSoft specialize in such issues and can select a variant that will consider all the legal nuances for you.

Our portfolio has a demonstrative example of compliance with legal requirements. When we worked on Securitize, our team had 10-12 engineers. At the same time, we had a team of 20-25 lawyers from a specialized New York law firm who monitored and helped to describe the project documentation and the legal part. They also worked on the legalization of all processes.
Herman Stohniiev, CTO and Co-founder of IdeaSoft

Business Considerations

Creating a cross-chain DeFi platform is not only a technical endeavor but also a business venture that requires careful planning and resource allocation. You must consider factors such as project duration, cross-chain DeFi platform development cost, and ongoing maintenance expenses.

To start DeFi project in any direction, we recommend assessing the competitive landscape and identifying unique value propositions. This will help position the platform for success in a crowded market. By the way, we at IdeaSoft have 7+ years of experience creating Web3 projects and can help you assess the current market. Feel free to contact us for initial consultation with our tech specialist.

Core Components of a Cross-Chain DeFi Platform

Certain core components are indispensable for building a robust cross-chain DeFi platform. Here are the necessary features to develop cross-chain DeFi platform.

Smart Contracts

Smart contracts serve as the backbone of any DeFi platform. They automate transaction execution and enable trustless interactions between users. In terms of a cross-chain DeFi platform, smart contracts facilitate interoperability between disparate blockchains. This is achieved thanks to executing cross-chain transactions securely and efficiently.

Cross-Chain Bridge Integration

Cross-chain bridge integration is needed for the transfer of assets and data between different blockchains. These bridges act as interoperability protocols. They allow users to seamlessly move assets from one blockchain to another while maintaining security and trust.

Liquidity Management

You must think through effective liquidity management to build cross-chain DeFi platform. Liquidity is paramount for the smooth functioning of any DeFi project. However, managing liquidity across multiple blockchains presents unique challenges. And you must think of them in advance.

Nevertheless, implementing sophisticated liquidity management strategies can optimize liquidity provision. These can be automated market-making algorithms and liquidity pools. This point is also important for ensuring efficient asset exchange across diverse blockchains.

Security Measures

Security is paramount as the threat landscape is constantly evolving. Implementing robust security measures, including encryption protocols, multi-signature authentication, and audit trails, is essential for safeguarding user funds and data in a cross-chain DeFi environment. Additionally, conducting regular security audits and vulnerability assessments can help identify and mitigate potential security risks proactively.

User Interface (UI) and User Experience (UX) Design

UI and UX design shape the overall usability of your cross-chain DeFi platform. A well-designed UI/UX enhances user engagement, fosters trust, and simplifies complex processes such as asset exchange and liquidity provision. You should:

Prioritize intuitive navigation
Utilize responsive design
Provide seamless integration with blockchain wallets

This way, you can enhance the user experience and drive the adoption of your Web3 platform.

Cross Chain Defi Platform Development Process: 7 Main Stages

Here are the main steps of how to build a cross-chain DeFi platform:

Define goals and functionality. The first step is to clearly define the goals of your cross-chain DeFi project and the required functionality. You must understand how your Web3 project will stand out in the market.
Market research. Conduct a thorough DeFi market research, study your competitors, and identify the advantages and disadvantages of existing cross-chain solutions. Identify potential gaps in the market that your Web3 project can successfully fill.
Select a blockchain platform. Choose the right blockchain platform to develop your DeFi app.
Develop cross-chain bridge. Deploy bridge smart contracts on both blockchains along with handler contracts. Then, an Oracle system can be deployed and integrated with bridge contracts.
Create smart contracts. Develop secure and efficient smart contracts that will fulfill your app’s core functions. Provide facilities for liquidity, token management, and other decentralized financial transactions.
Design the user interface. Create an intuitive and user-friendly UI. It is important that users can easily interact with your cross-chain platform even if they do not have technical skills.
Test and optimize. Conduct thorough testing of your DeFi application, including functional, security, and performance testing. Based on the test results, optimize the code and functionality.

By following these steps and paying attention to each step, you can increase your chances of building a successful and competitive DeFi cross-chain app.

Summary

Creating a cross-chain DeFi platform is a complex and time-consuming process. It requires careful planning, an understanding of complex financial processes, technical skills, and strategic thinking. However, by following the steps outlined above, you will be able to develop a successful and competitive cross-chain DeFi app that can attract the attention and trust of users.

Want to create your own blockchain solution? Contact our IdeaSoft team. Our team of experts is ready to provide you with high-quality cross-chain DeFi application development services right now.

Ethereum EIP-4844 Explained

EIP-4844 is a key update to the Ethereum ecosystem that aims to improve scalability and reduce the cost of fees for transactions within the network. The update introduced a new type of transaction: large binary objects. These allow large amounts of data to be temporarily stored on the Ethereum blockchain without loading the platform.

Looking for a team to implement EIP-4844?

At Ideasoft, we are a creative team that not only develops software but also implements the most advanced development practices. Our team of experts can create Web3 products using all the advanced technologies like EIP-4844. We do not just follow trends but actively research and implement them in our projects. Contact us for the web3 technologies consultation & product development.

Table of Contents:

What is EIP-4844?
How Does EIP-4844 Work?
Benefits of EIP-4844
Potential Drawbacks and Considerations
Comparative Analysis
Summary

What is EIP-4844?

EIP-4844 release date was 13 March. It solves 2 of Ethereum’s major problems: high gas charges and limited network bandwidth. The introduction of Blob objects significantly increased the amount of data that can be transferred and processed in a single transaction while reducing the need to store that data on the blockchain permanently. Blob objects are stored temporarily, reducing the load on nodes and ensuring more efficient utilization of network resources.

The main aspects of Ethereum EIP-4844:

The new binary object transaction type allows large amounts of data to be included in blocks, reducing transaction costs and increasing network bandwidth. The information is stored temporarily, usually for a few months, after which it is deleted, helping to optimize the use of space and resources in the ecosystem.
Proto-danksharding is a transitional step to full danksharding, allowing Ethereum to scale to 100,000 transactions per second. This upgrade increases the efficiency of transaction processing and reduces the load on the core network.
The introduction of Blob objects implies a reduction in the cost of gas per transaction, as data can be efficiently compressed and temporarily stored, reducing the total amount of information required to reside permanently on the blockchain.

EIP-4844 is a significant step forward for Ethereum, offering solutions to the network’s limitations and laying the foundation for future scaling. This update not only improves performance and reduces users’ financial costs but also improves Ethereum’s position as the leading blockchain platform for developing decentralized applications.

How Does EIP-4844 Work?

Proto-danksharding (EIP-4844 explained) is a significant Dencun upgrade to the Ethereum ecosystem to improve performance and reduce transaction costs. To understand how EIP-4844 works, it is important to review the concepts of Ethereum sharding and danksharding, as well as the key innovations introduced by the EIP-4844 timeline.

Therefore, let’s first understand these terms:

Sharding is the process of dividing the blockchain database into smaller segments, or shards, each of which can process transactions in parallel. This increases overall network throughput because multiple shards can process transactions simultaneously, reducing the load on each individual node and speeding up transaction processing as a whole. In the context of Ethereum, sharding is part of a long-term plan to improve the network’s scalability.
Danksharding is an advanced version of sharding, specifically designed for Ethereum, that introduces the concept of Blob objects for storing large amounts of data. These Blob objects are designed to be temporarily stored on the blockchain, reducing transaction costs and increasing network bandwidth while keeping data available for processing and verification. EIP-4844 represents the first step towards implementing danksharding by introducing support for Blob objects in Ethereum.

Therefore, EIP-4844 is only the first step toward a large-scale optimization of the decentralized Ethereum network.

Benefits of EIP-4844

EIP-4844 results in more streamlined pricing for crypto rollups and lowers overall transaction expenses. The mechanism for Blob fees, similar to EIP-1559, targets average block sizes of 1MB, representing a significant advancement from Ethereum’s current capabilities. This improvement primarily benefits crypto rollups, fostering competition among different solutions and markedly reducing transaction costs.

So, here are the EIP-4844 benefits brought with the Dencun upgrade:

Rollups Ethereum experiences a 100x drop in transaction fees. With EIP-4844’s introduction of “blob transactions” and a combined fee market, a notable decrease in transaction fees for crypto rollups becomes achievable. This heightened cost efficiency benefits users and encourages broader adoption of Ethereum’s layer 2 solutions.
Scalability for a global transaction network. EIP-4844 lays the groundwork for Ethereum to effectively manage a global transaction network. By optimizing data handling and scalability, Ethereum becomes more capable of accommodating a higher transaction volume, thereby supporting diverse applications and users.
Enhanced competitiveness in the cryptocurrency landscape. Through lowered fees, enhanced transaction processing, and scalability, Ethereum gains a competitive edge in cryptocurrency. It can solidify its position as a premier choice for developers, users, and businesses seeking a secure and economical blockchain platform.
Efficient data pruning and management. EIP-4844 introduces streamlined data pruning mechanisms, ensuring data availability only for requisite durations. This reduces long-term storage demands and expenses, promoting Ethereum’s sustainability and environmental friendliness.
Future-ready for network enhancements. By embracing a modular approach and a specialized data layer, Ethereum becomes better equipped to adapt to future alterations and upgrades. This adaptability enables distinct teams to focus on their respective domains, fostering continual innovation within the Ethereum ecosystem.
Enhanced user experience. Reduced transaction fees and improved scalability translate to a superior user experience. Users benefit from quicker, more economical transactions, making Ethereum a more appealing platform for various applications, including DeFi, NFTs, and beyond.

Now, many Web3 projects leverage EIP-4844 to their advantage. By the way, if you want to develop your own Web3 product and face the challenge of choosing out of many blockchain development platforms, our IdeaSoft team can help you.

Potential Drawbacks and Considerations

Despite EIP-4844’s significant potential to improve scalability and reduce transaction costs on the Ethereum network, the update has been criticized.

One of the main disadvantages pointed out by critics is the temporary storage of Blob objects. While this reduces network load and transaction costs, it raises questions about long-term data access and preservation. Temporary storage of data may create an obstacle for some applications that require long-term or persistent access to information.

Another criticism concerns the difficulty of implementing and integrating the new type of transaction with existing applications and infrastructure. Application developers must adapt their systems to work with Blob objects, which can require significant effort and resources. It also entails time-consuming training and transition costs, which can slow the adoption of the EIP-4844 update on a wide scale.

In addition, there are concerns about the potential increase in centralization on the Ethereum network due to changes in the processing and storage mechanism. Some experts have expressed concerns that the introduction of Blob objects and changes to the transaction structure can lead to an increased role for large validators and nodes with significant computational and storage resources, potentially degrading the decentralized nature of the network. Additionally, the ability to create Farcaster frames could be impacted by these changes, further complicating integration efforts for some applications.

Comparative Analysis

Here is a comparative table of how gas has changed after the EIP-4844 date.

	BEFORE EIP-4844	AFTER EIP-4844
PROJECT	GAS TO SEND	GAS TO SWAP	GAS TO SEND	GAS TO SWAP
Ethereum	$1.04	$5.21	$0.104	$0.521
Starknet	$0.22	$0.71	$0.022	$0.071
Arbitrum	$0.12	$0.33	$0.012	$0.033
Polygon zkEVM	$0.11	$0.40	$0.011	$0.040
Optimism	$0.06	$0.12	$0.006	$0.012

Summary

The main consequence of EIP-4844 for users is a significant reduction in the cost of transactions in L2 networks and a reduction in the price of gas in the Ethereum network. This, in turn, gives impetus to the rapid development of rollup solutions and their ecosystems.

Depin platform, for instance, leverages decentralized infrastructure to provide on-demand computing power specifically suited for rollup solutions. With EIP-4844’s efficiency improvements, Depin can empower developers to build even more scalable and cost-effective Web3 applications on L2 networks.

Our IdeaSoft team carries a remarkable mix of profound Ethereum expertise, a proven track record in working with rollups, and an emphasis on strategic goals. We understand the nuances of EIP-4844 and how it can boost your Web3 product. We’ll work closely with you to create custom solutions that lower expenses but also open unknown opportunities for your project in the growing cryptocurrency terrain.

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Why Uniswap V4 is the Best Choice for Most DEX Development Purposes

DEX AMM Features with Uniswap V4

Enhancements in Uniswap V4

Top 5 Features To Compete With Uniswap V4

Feature 1: Liquidity Management

Feature 2: Smart Contracts

Feature 3: Bento Box UI/UX

Feature 4: KYC/AML Processes

Feature 5: Privacy Policies

How to Overcome Challenges with IdeaSoft

Last Thoughts: Tech Stack Recommended & Other Security Measures

Summary

Discovering Plasma: The Basics

Stages of Ethereum Plasma Evolution

Plasma MVP (Minimum Viable Plasma)

Plasma Cash

Plasma Debit

Plasma Prime

Plasma XT

Gluon Plasma

Plasma Free

Modern Challenges for Plasma Free

The Future of Plasma and Layer-2 Solutions

Integration with Other Layer-2 Solutions

Expansion Beyond Ethereum

Adoption Across Industries

Summary

Understanding Layer 2 Solutions

Plasma: A Closer Look

Rollups: A Deep Dive

Plasma vs. Rollups: A Comparative Analysis

How Plasma Free Solves Key Challenges

A practical example: DEX on Plasma Free

Conclusion

Overview of Shared Sequencing

Top 3 Advantages of Shared Sequencing

Greater Efficiency

Improved Security

Real-Time Processing

Based Sequencing

Cost-Effectiveness

Improved Throughput

Reduced Transaction Fees

Exploring Smart Wallets

Automation

Integration with dApps

Enhanced Security Measures

Conclusion

Step-by-Step Guide to Building a dApp on Solana

Step 1: Set Strategic Goals and Objectives, Evaluate Solana’s Suitability for Your Project

Step 2: Assemble a Skilled Development Team

Step 3: Design the dApp Architecture

Step 4: Develop Smart Contracts Using Rust

Step 5: Implement Frontend with React

Step 6: Integrate Wallet Functionality

Step 7: Testing and Debugging

Step 8: Plan for Deployment and Scaling

Step 9: Launch, Monitor, and Maintain Your dApp

Step 10: Engage with the Community and Gather Feedback

Advantages of Building dApps on Solana

Scalability

Low Transaction Costs

Fast Transaction Speeds

Flexibility and Customization

Robust Security

Growing Ecosystem

Active Community Support

Three examples of dApps on Solana

Mango

SolFarm (Tulip)

Star Atlas