Technical Overview

VDEX is powered by Virtual Rollups, a framework built on zero knowledge state channels. Transactions are self-validated and peer-to-peer, eliminating middle men and restoring power to users.

Virtual Rollups segment capital into two layers:

• The settlement layer is a blockchain that locks and reassigns escrow according to state

• ZK State Channels (ZKSC) are primitives that let users reassign escrow rights through state transitions

Participants lock funds on a settlement layer, like Ethereum, and receive a balance state. This balance state can be exchanged for position states through the ZKSC. At any time, users may submit states onchain to trustlessly unlock funds.

This architecture has distinct advantages:

• Privacy

• Full Self-Custody

• ZeroGas transactions

• Sub-millisecond finality

• Theoretically unbounded TPS

Learn more in the VDEX whitepaper.

Whitepaper