You probably heard already that we are working towards releasing the final version of Polkadex Testnet. If you are with us since 2020, you also probably know that we have already released two versions of the Testnet before. In this article, we will take a closer look at what we already achieved and what our developers are working on now.
First of all, let’s start with the terms.
Testnet vs Mainnet
Testnet and Mainnet are the terms used for different stages of blockchain product development.
Testnet is an experimental network. Here the developers can test, create, modify and monitor the performance of the blockchain that they are developing. Testnet phase is very important as it gives developers time to fix bugs and network failures. It is also possible to take risks and test various features that developers have in mind. As the result of this preparation stage users can try out the product in the form of a simulation (in case of the exchange this will be trading tokens that do not hold real value) and the developers can gather feedback to incorporate it into the best possible model for the final product.
Mainnet is the final version of the blockchain that is fully functional and ready to be used. In the case of the exchange, it will be the publicly available platform where users can trade tokens with real value.
So what is the story with Polkadex Testnet versions? Let’s dive deeper.
The first version of the Testnet was released in Q4 2020. It aimed to test the Substrate codebase for on-chain execution of simulated trades from one of the largest centralized exchanges in the world. As we were building the first orderbook on Substrate, the idea was to optimize the trading engine and logic. Testnet V1.0 was also part of the initial Web3 open grants program.
Testnet V2.0 was launched in February 2021. Traders had the opportunity to place simulation trades using test tokens. The speed of trading on V2.0 was 300 transactions per second. It was the first time we opened the Polkadex interface for external interaction and offered simulated trades from a high traffic centralized exchange. This allowed us to benchmark how the on-chain orderbook works, as well as study and understand the drawbacks of implementing an orderbook that is fully on the blockchain. The present architecture of the final Testnet includes the SGX TEE level2 orderbook solution, the important data that we collected from V2.0 and further research and development.
You can see how Polkadex Testnet V2.0 worked in the video demo on our YouTube channel.
This is the final version of Polkadex Testnet. While working on the previous version we made a real breakthrough that allowed Polkadex Orderbook to reach 500 000 transactions per second. The technology that gave us high throughput and low latency was the implementation of Orderbook on a TEE enclave, the code for which will be verifiable on-chain. It means that orders can go directly to the hardware instead of being broadcast to the network which gives traders near-native performance to their requests. This is especially important as Polkadex will be available on multiple devices and we need to assure the same great level of trading experience.
TEE gave us an opportunity to assign the role of an operator and assure that they cannot tamper with user funds. Hence the exchange stays fully non-custodial and we add guaranteed funds recovery in case tampering happens or the exchange becomes a bad actor.
Our tech stack that made high-frequency trading logic possible is available on Openware. Encrypted execution of orders is done through TEE enclaves. Off-chain commits through IPFS allows Polkadex to be fully non-custodial, resistant to hacks and any other external interference, at the same time retain the latency below 20 milliseconds and ability to recover funds in 12 seconds in the event of a security breach.
Testnet V3.0 is scheduled to be released at the end of May — beginning of June 2021.
Testnet V3.0 will showcase the following functions:
• High-frequency trading on orderbook and order engine demonstrated with simple limit orders
• Crosschain bridges from Ethereum’s Kovan testnet via Chainbridge
• Fully on-chain IDO platform with basic functionalities
At the moment, our developers have completed most of the work for The Orderbook on trading logic and high-frequency trading. The work on TEE is completed at 50%. Blockchain code for the IDO Platform is complete.
You can see that our tech stack is complex and there is a lot of work that we have already done and are doing now on the way to the final Testnet. Our goal is to deliver V3.0 as fast as we can, but the main focus is the quality and functionality of the Testnet. Hence, we have a rough timeline for the end of May — the beginning of June for launch. This will allow us to incorporate the best possible features on the Testnet and ship to the community the product that we are really proud of. We’ll announce the exact date of the final Testnet release with a 2 weeks notice to users.
What’s next after the Testnet release? Our next step will be benchmarking the TEE code for production use and real-time load. When this is complete, we will be handing over the code for the security audit. And finally, the Mainnet launch.
There will be a lot of exciting news and updates in the coming weeks and months, so make sure to follow and check regularly our official channels: