Future of Decentralized Exchanges with Kandola Network’s Powerful Decentralized Databases

By DroomDroom Team
18 Min Read

Decentralized Exchanges (DEXs) are paving the way for the future of crypto trading. However, many DEXs still operate with centralized databases to manage off-chain order books, liquidity, and more, which compromises the transparency they fundamentally advocate for.

Such centralization not only makes their operations less transparent to end users but also presents challenges related to transparency, scalability, cost, and efficiency. This inherent drawback underscores the pressing need for more decentralized solutions in the DEX ecosystem.

Stepping into this gap are decentralized databases, offering a transparent and trustless infrastructure to address these challenges. A standout in this realm is the Kandola Network, a Web3 data layer setting new benchmarks in decentralized database technology.

Step into the enchanting world of Web3’s future, where decentralized databases serve as the unshakable backbone of this digital realm.

Before delving into how Kandola Network is revolutionizing the decentralized database landscape for DEXs, it’s essential to understand what decentralized databases are and why they are crucial for the next wave of decentralized applications.

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Introduction to Decentralized Databases

Decentralied database

Traditional databases are centralized, meaning they rely on a single point of control. This architecture is susceptible to various issues, including security breaches, downtime, and single points of failure. 

Decentralized databases, in contrast, are distributed across various nodes. This design ensures that even if one node fails, the system remains operational. Furthermore, they offer increased transparency, security, and resistance to censorship – all qualities that perfectly align with the ethos of the blockchain world.

The Kandola Network is an excellent example of how decentralized databases are driving forward the potential of DEXs. With four private testnet clients and over 180 days in the testnet phase, the network is currently capable of storing more than one million data points per second. Their dedication to progress and innovation is evident with four patents filed and nine patents in the pipeline (at the time of publishing this article), setting them apart in the competitive world of Web3 technology.

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Features that make Kandola Network a Game-Changer for DEXs

Cost-Efficiency and Affordability

Inexpensive Rates: Extremely low rates, expect at least 80% cost reduction compared to traditional systems. Kandola Network stands out as one of the most cost-effective solutions in the market. When compared to traditional cloud databases, the savings become evident.

Direct Benefits to Users: The affordability isn’t just for the DEXs. The platform’s design allows DEXs to pass on these cost savings to their users, thus providing more affordable transaction rates and potentially attracting a wider user base.

Imagine a startup trying to launch their decentralized app. With limited funds, they choose Kandola Network for data storage due to its affordable, allowing them to allocate budget to other crucial areas, like marketing and user acquisition.

Superior Scalability Features

Advanced Technologies: Through the incorporation of dynamic subnets, sharding techniques, parallel chains, and more, Kandola Network has pioneered in scalability.

Meeting Growing Demands: With DEXs growing at unprecedented rates, they require a network that can handle enormous transaction volumes. Kandola ensures that these transactions occur seamlessly and swiftly.

Imagine a popular DEX that suddenly experiences a surge in user traffic due to a trending cryptocurrency. With Kandola’s advanced scalability, the platform handles this spike without hitches or delays, keeping transactions smooth.

Flexible Data Storage Solutions

Customizable Storage Duration: Kandola Network steps away from the traditional one-size-fits-all storage models. Users have the flexibility to specify the exact duration for which they need data storage.

Pay-as-you-Go: There are no unnecessary costs. Users pay exclusively for the storage duration they specify, ensuring they get optimal value for their money.

Imagine a DEX enterprise which needs to store vast amounts of data, but only for a 6-month project due to regulation. Instead of paying for a full year or more, they use Kandola Network to define their storage needs, paying only for those 6 months, ensuring no wasted costs.

User-Centric Experience

Diverse Developer Tools: Developers can leverage a vast array of tools such as SDKs, APIs, familiar SQL, NoSQL constructs and more. This array ensures that integrating the Kandola Network into existing systems is hassle-free.

Simplified Navigation for Users: For any platform, the end-user experience is paramount. With its user-friendly interface, even non-tech savvy individuals can effortlessly navigate through the Kandola Network.

Imagine a developer who has just transitioned from a different field and isn’t well-versed with complex coding. With Kandola’s No-Code tools and familiar constructs, they can still develop and deploy their DApps without getting stuck in intricate codebases.

Enhanced Real-Time Communication

Kandola stands at the forefront of real-time communication with almost real time delivery and storage of data.

Instant Confirmations: Ensures that trade confirmations on DEXs are instantaneous, enhancing user satisfaction and trust in the system.

Imagine a trader keenly watching the markets and making quick buy/sell decisions. They finalize a trade and, thanks to Kandola’s high TPS, receive instant confirmation, ensuring they don’t miss out on any lucrative opportunities due to delays.

Dependable Uptime and Performance

Reliable Architecture: Kandola’s infrastructure is built upon on-chain nodes enhanced with Geo Location awareness, ensuring unparalleled uptime.

Consistent, Top-Tier Performance: Regardless of transaction volume or the size of the user base, DEXs can rely on Kandola for consistent and outstanding performance.

Consider a surge in trading activity, triggered by a major cryptocurrency announcement. With millions of users simultaneously wanting to trade on a DEX platform, Kandola’s robust availability, combined with Geo Location-aware nodes, guarantees that the platform remains responsive and operates at peak efficiency for users across the globe, even under extreme demand.

In essence, Kandola Network provides a modern, affordable, and technologically advanced solution tailored for DEXs and their vast and growing user base.

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Features that Set Kandola Network Apart

Kandola flow chart

AI-Driven Analytics

Kandola Network allows customers to build AI models on top of their data. Instead of merely acting as a repository for data, meaningful actionable insights can be harvested by natively training models on Kandola Network. By doing so, Decentralized Exchanges (DEXs) can tap into a more profound understanding of user patterns, preferences, and overarching market dynamics. This helps them tailor their services more effectively and make informed decisions.

Imagine a new cryptocurrency gaining sudden traction. Through Kandola’s AI-driven analytics, a DEX can promptly identify this trend, understanding not just the volume of trades but also the demographics and behaviors of the traders. This allows the DEX to create targeted marketing campaigns or even design features to serve this new user segment better.

Community-Driven Schemas

Incorporating community-driven schemas is a fundamental aspect of Kandola Network’s approach, driven by a deep understanding of the significance of interoperability and community involvement within decentralized ecosystems. This unique feature places a strong emphasis on the development of adaptable frameworks that facilitate seamless interactions with digital assets. Consequently, it not only enhances user engagement but also enables a personalized experience tailored to individual users’ specific needs and preferences.

A notable illustration of the advantages of community-driven schemas can be found in the context of a decentralized exchange (DEX) like Kandola Network. For instance, consider the scenario where the DEX facilitates lending between users to enable leveraged trading options. When the schemas governing these lending transactions are collectively determined and agreed upon by the community, it opens up a world of possibilities. Numerous lending protocols and platforms can seamlessly integrate and interoperate with the DEX, simplifying cross-platform transactions and expanding the DEX’s reach.

Imagine a surge in the popularity of non-fungible tokens (NFTs) for digital art on the platform. Here, the power of community-driven schemas truly shines. Users have the freedom to propose and even create innovative methods for interacting with, categorizing, or trading these NFTs on the DEX. This dynamic approach not only makes the platform more adaptable but also ensures that it remains user-centric, evolving in tandem with the community’s evolving needs and preferences.

Versatile Database Options

Decentralized Exchanges (DEXs) have diverse data storage and access requirements. Kandola acknowledges this by providing an extensive range of database solutions. This means that DEXs have the right tool at their disposal, be it SQL for structured data, NoSQL for flexible and scalable needs, Key-Value for paired data, or Graph databases for detailed relational structures.

SQL for Order Management: Efficient and Structured

One of the fundamental aspects of DEXs is facilitating asset trading. This necessitates the use of an order book – a record of all buy and sell orders. SQL databases, being adept at handling structured data, enable DEXs to manage these order books proficiently. They allow swift operations such as adding, updating, or retrieving orders based on various parameters like price or timestamp.

NoSQL for User-Centric Features: Scalable and Flexible

As DEX platforms expand, personalizing the user experience becomes pivotal. For instance, a platform might want to store semi-structured user data, from trading histories to individualized alerts. NoSQL databases, known for their scalability, are ideal for managing such semi-structured or unstructured user profiles.

Key-Value Databases for Efficient Token Management

In the world of DEXs, every user has a unique wallet address coupled with token balances. The Key-Value database model shines here. It allows platforms to rapidly update or fetch the balance of any given user. In this setup, the wallet address serves as the “key”, while the corresponding balance is the “value”.

Graph Databases for Complex Ecosystem Interactions

Many DEXs don’t operate in isolation; they’re often part of a more extensive DeFi ecosystem where assets, protocols, and users intertwine. For scenarios where understanding intricate relationships is crucial, Graph databases come into play. They’re adept at handling and querying data with multifaceted relationships, making tasks like mapping out interlinked DeFi protocols or tracing user trading connections efficiently.

Kandola: Bridging Diverse Trading Needs with Seamless Database Integration

A holistic DEX platform caters to a spectrum of needs, from straightforward token trading to sophisticated DeFi project interactions. While a Key-Value database might suffice for simple trades, complex relationships in the DeFi world might necessitate a Graph database. Kandola stands out by ensuring that a DEX can effortlessly navigate these diverse requirements, offering a smooth, comprehensive trading experience.

Private Chains with SupraNets

Kandola’s SupraNets offers a groundbreaking feature designed to create private blockchain networks, ensuring enhanced data privacy and security. This not only benefits users by fostering trust but also bolsters the overall adoption rates of these networks.

For instance, consider a corporation looking to utilize a DEX for intra-company asset transfers. They might hesitate due to concerns about exposing sensitive financial information. However, with SupraNets, they can run their operations on a private chain, safeguarding confidential data from the broader public network.

What makes SupraNets even more remarkable is its seamless integration with community-driven schemas. While a DEX maintains ownership of its data on its primary chain within the Kandola Network, it can selectively share this information with other ecosystem applications.

This strategic approach ensures increased interoperability and controlled data dissemination across applications. Moreover, it enhances customer engagement, delivering holistic value through a suite of services surrounding trading and DEXs.


As the number of decentralized apps (dApps) and platforms increases, there’s a growing need to have them communicate and function together effectively.

Kandola Network bridges this gap by enabling seamless integration across different applications in the decentralized ecosystem. This streamlines user experience, making transitions between different apps and platforms smooth and hassle-free.

Imagine a user who wants to move their assets from a digital wallet to a DEX, then stake them in a DeFi protocol, and later spend some of their earnings in a decentralized e-commerce store. With Kandola’s interoperability feature, this entire process becomes fluid and hassle-free, with each decentralized application 

Harnessing the Power of L1 & L2 for Enhanced Blockchain Transactions

Layer 1 (L1) and Layer 2 (L2) represent solutions crafted to enhance the scalability and speed of transactions on blockchains. The Kandola Network is a pivotal tool in this evolution, equipping Decentralized Exchanges (DEXs) with the ability to access verifiable proofs for smart contracts across both L1 and L2 layers. By leveraging these proofs, DEXs significantly increase the transparency and trust quotient of each transaction. This not only ensures that transactions adhere to their stipulated terms but also cements confidence among users regarding the authenticity and legitimacy of their trades.

Consider a scenario where a user is on the brink of executing a high-value transaction on a DEX. Here, the DEX, utilizing the capabilities of the Kandola Network, retrieves verifiable proofs for the smart contract. This process ascertains that the transaction complies with the set terms and is seamlessly recorded on both the primary and secondary blockchain layers. Such thorough verification empowers the user to proceed with their transaction, bolstered by the assurance of its transparency and trustworthiness.

Moreover, the Kandola Network offers DEXs the advantage of swift and efficient settlements on both L1 and L2 layers. This dual-layer settlement capability amplifies scalability while steadfastly preserving the security and finality of each transaction.

In addition to ensuring transactional transparency and rapid settlements, the Kandola Network distinguishes itself by processing and amalgamating data analytics from both L1 and L2. This integration results in a unified view of trade-related data, granting users an invaluable perspective. With this consolidated real-time information at their fingertips, users are better positioned to make well-informed trading decisions.

In essence, the Kandola Network has positioned itself as a comprehensive solution for decentralized exchanges, ensuring they have the tools, insights, and capabilities to operate efficiently, securely, and in tune with user needs.

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The decentralized world is rapidly evolving, with DEXs at its forefront. For DEXs to truly realize their potential, they need robust backend support, and that’s where decentralized databases like the Kandola Network come in. With its array of features, cost-effectiveness, and commitment to innovation, the Kandola Network isn’t just a solution for today’s DEX challenges – it’s paving the way for the future. As the decentralized world grows, databases like Kandola will be the unsung heroes, powering the revolution from behind the scenes.