Why Vessel Is The Exchange Crypto Needs?
Why Another Exchange?
“Why another exchange?“ ”With so many trading platforms available, centralized and decentralized, why introduce another one?“ We are often asked these questions, and we believe existing exchanges have inherent flaws that will become more problematic over time.
Vessel is designed to address these underlying issues by starting as a trustless trading platform and gradually evolving into a Zero-Knowledge (ZK)-powered Layer 3 network.
Centralization is Sinned
Bitcoin, the pioneering cryptocurrency, was created in 2008 to facilitate peer-to-peer electronic transactions without the need for trust. Ironically, much of today’s Bitcoin trading occurs on centralized platforms, deviating from its original decentralized ethos. This shift has led to high-profile crises, such as the collapses of Mt. Gox and FTX. These incidents, driven by deceit and misuse of power, highlight the inherent vulnerabilities.
To address trust issues in CEXs, solutions like government regulation and proof of reserve have been introduced. However, these measures introduce more trusted parties, conflicting with the simplicity of Bitcoin and its original goal of zero trust. Additionally, these solutions often lack the transparency and adaptability needed to protect user assets in such a volatile market.
Decentralization’s Challenges
Ever since Uniswap led the DeFi Summer in 2018 with AMM, DeFi applications built directly on blockchain consensus have flourished, extending from foundational AMMs and lending protocols to more advanced derivatives.
While smart contracts address some trust issues in trading systems, they introduce new limitations:
Scalability: Consensus mechanisms limit throughput. Even switching from PoW to PoS, and extending Layer 1s to rollups, transaction costs remain high compared to traditional systems.
User Interface: Using smart contracts requires spending gas and waiting for transaction validation, hindering high-frequency trading and differing from traditional platforms.
Though blockchain technology is evolving, these challenges still deter mass adoption and push new users towards CEXs, despite the underlying security and transparency issues in centralization.
Vessel’s Philosophy: A design with the Strength of Both
Vessel combines the best of both worlds: the trustless nature of blockchain with the efficiency of traditional trading systems.
Vessel benefits from the transparency and security of decentralization:
Asset Custody: Users keep control of their assets with cryptographic keys, “Not Your Keys, Not Your Coins”.
Transparency: Vessel uses ZK verifiers as smart contracts for full transparency.
Solvency: Similar to DEXs, Vessel's solvency relies on cryptographic proofs and open-source code, audited by security experts.
Vessel is achieving high efficiency and smooth user experience:
Performance & Cost: Vessel's performance heavily depends on the ZK proof generation process and we optimized performance using ZK proof aggregation mechanisms, making 0 GAS truly available for everyone while supporting up to a thousand TPS.
UI/UX: Vessel offers a simple, intuitive interface like CEXs, minimizing the need for users to understand complex blockchain concepts.
Vessel focuses on solving modern problems with innovative solutions, combining the strengths of both centralized and decentralized exchanges. We aim to revolutionize trading with solid foundations and bring more new users on-chain from a brand new starting point. Join us as we redefine the future of trading!
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