While on paper the implementation of eUTXO works perfectly, it has some significant flaws in scalability. That is, each eUTXO, such as a pair of token and asset pairs, can only be spent once, as part of a single transaction per block. On the Cardano blockchain, each block is added approximately every 20 seconds, which means that a liquidity pool could only facilitate one swap every 20 seconds. The reality is that isn’t close to ideal, hence will most likely prevent CardX from achieving its success.
CardX team, however, is focused on building a solution to the scaling problem. Although the approaches are not clearly stated, the first step is for them to work on the future upgrade to the protocol to ensure proactive accounting for users. CardX team is designing the protocol to tolerate segmentation of its state or aggregate interactions with that state.
The team is working to ensure there is a relatively seamless solution to keep liquidity accessible across versions of the protocol. Currently, validator smart contracts, which hold liquidity for each pool, have a list of future versions. Every future version will be able to access the liquidity at the smart contract. The governance of the CardX protocol will allow for voting by token holders. The holders can choose to add future versions to the list as they wish.
With the rising popularity of Cardano, the CardX team is looking to build on this aspect to develop one of the best DEXs in the market today. We can only keep watch as developers work round the clock to solve the problem.
