Why is OKX DEX's leading position still solid?

Author: Yue Xiaoyu

The smooth product experience we see is just an appearance. If we simply praise how good the interactive experience of OKX products is, then we have not grasped the essence of OKX products.

Where is the moat of OKX products? What is the strength of OKX?

Why can OKX often surpass the latecomers? Why is OKX DEX still stable in the short term after the suspension of service?

One ​​of the main reasons is that OKX has extremely strong infrastructure. The smooth experience we feel in the product is just the result, and it is supported by a lot of infrastructure.

Just like we can only see the tip of the iceberg, the truth is below the sea level, and we can see the whole of a giant.

We need to understand the system architecture of the Web3 wallet first, which can be divided into several layers:

1. User interface layer

This layer is the product that ordinary users can directly perceive, including wallet APP, browser plug-ins, web pages, and SDK used by developers.

This layer is the most superficial layer. If you want to be intuitive, smooth and fluent, you need the close cooperation of the following layers.

2. Application layer

The application layer is the core business logic layer of the wallet, including DEX, Marketplace, DeFi, and Wallet.

This layer converts user intentions into specific on-chain or off-chain operations.

Each business is a complex module that contains very complex business logic.

On this layer, OKX's business can be said to cover a very wide range, whether it is DeFi or NFT (Bitcoin inscription).

3. Data layer

The data layer is responsible for storing and managing local and remote data related to the wallet to ensure the security and consistency of the data.

This layer is the cornerstone of system reliability.

All the data we use in the application layer are processed at this layer, including data storage, data structuring, data analysis, and data monitoring.

OKX has done a lot in the data layer. OKX has very strong on-chain data analysis capabilities and has even launched a commercial product, OKLink.

4. Interaction layer

The interaction layer is a bridge between the OKX wallet and external systems (including blockchain networks and other services), mainly for on-chain data synchronization and analysis.

This layer needs to communicate with the on-chain nodes, broadcast transactions and query the on-chain status.

5. On-chain node layer

The on-chain node layer is the direct connection point between the wallet and the blockchain network, responsible for interacting with the distributed ledger. This layer determines the degree of decentralization and performance of the wallet.

OKX has deployed some nodes (such as Ethereum and X Layer nodes) on its own, and also supports access to third-party node services (such as Infura and Alchemy).

Generally speaking, for security and reliability, OKX will build most of its own nodes.

At the same time, this also ensures the speed of chaining, which is particularly important in the Meme coin wave.

Of course, the operating cost of the node is also very high, and it is an infrastructure that requires a lot of resources.

To sum up

After understanding these five layers, we will find that Web3 wallets are not simple. If we want to do it well and have a smooth user experience, each layer needs to do a lot of things and cooperate well with each other.

This is also why many wallets on the market are very slow to use, and there is always an indescribable sense of blockage, such as MetaMask, which is a typical example, because the underlying infrastructure is not well done.

When OKX pursues extreme optimization at every layer (such as dynamic adjustment of Gas and self-built nodes), other products are still at the "usable" level and have not deeply explored the user experience.

When OKX relies on a strong ecosystem (exchanges, DEX, NFT markets) and self-built infrastructure to form a synergistic effect, other products are mostly single wallets and lack business barriers.

When OKX actively embraces new technologies and new protocols (such as Bitcoin Inscriptions and Meme Coins), other products are slow to iterate and cannot keep up with the rapid development of Web3.

This is the real difference between OKX and its competitors.

Currently, other competitors have begun to expand frantically, but they may not be able to take on this overwhelming traffic. The key lies in whose product experience is good enough to truly retain users.

However, it is still quite difficult to achieve a user experience comparable to that of OKX Wallet in a short period of time. OKX Wallet has a very deep technical accumulation at every level.

More importantly, OKX will not leave too much time for its competitors. They will definitely try their best to supplement DEX's data monitoring and address marking capabilities, and will fully negotiate with senior executives.

That's why I always think that OKX DEX's leading position is still stable. After OKX DEX restarts its service, its smooth user experience will still attract users back.

WaitOKX DEXrestart.