When it comes to the world of decentralized finance (DeFi), there is often the issue of concurrency that continues to cause problems for countless traders, investors and projects. Put simply, this issue pertains to the ability of various elements or units of an algorithm or program to be operated out-of-order as well as via partial order without impacting the eventual outcome. Concurrency therefore enables simultaneous execution of various concurrent units, which improves the dApp’s performance and overall effectiveness.
Concurrency is essential for any decentralized exchange (DEX) since it permits several transactions to be completed at the same time without any significant delays. Concurrency issues often arise when the dApp grows in popularity and more users begin to engage with its protocol.
Moreover, regarding Cardano (ADA) specifically, many dApps have to deal with concurrency-related problems on a frequent basis, even more often than that of Ethereum (ETH) in fact. This is largely due to the fact that the Cardano blockchain has been incorporated into a model based on UXTO-accounting (which is usually considered to be very safe and decentralized) rather than one that is purely accounts-based, such as that of Ethereum.
Solving the problem
A leading DEX by the name of Cardax claims to have the answer to the aforementioned concurrency issues. It has thus designed a novel general-purpose algorithm which has the ability to solve all issues regarding concurrency as far as Cardano’s blockchain may be concerned. The main goal of Cardax via this initiative is to hence help improve user experience and enhance overall efficiency.
With that in mind, Cardax has developed a new algorithmic technique dubbed ‘Streaming Merge’ to solve the concurrency problems and improve scalability in an innovative fashion. This algorithm solves the concurrency problem in a creative way by assigning users exclusive threads so that they may submit their activities before combining them into a singular thread. Not only is this merged thread very time-effective, but it may also then be handled through a sequential action resolver, which is a batch of successive actions that the platform can access as needed.
What’s the endgame?
Ultimately, the general-purpose algorithm shall enable users to engage with the Cardax protocol without being interrupted or interfered by anyone. Streaming Merge therefore extends beyond that of the DEX and can be used by additional Cardax-hosted services in the near future. Furthermore, Cardax also plans to distribute the method as a standard library which developers may use to construct dApps and help further solve Cardano’s concurrency issues.
As the cryptocurrency industry continues to develop, Cardano will need new solutions such as the abovementioned algorithm to help it keep up to date with the evolving needs of the sector and to ensure that it does not fall behind its competitors like Ethereum, Polkadot (DOT) and Solana (SOL). By paying attention to a simple interface as well as deep liquidity along with establishing key partnerships with the likes of Tweag, MLabs and Well-Typed, Cardax shall hence be able to assist Cardano in terms of becoming a crypto-powerhouse for a long time to come.