Introduction to basic functions of blockchain Exch
At present, in the encrypted asset market, there are more than 100 contract exchanges with Chinese version, of which 10% have their own documentary function, and the stock competition is extremely fierce. Sometimes when an exchange opens a group, 90% of the users who enter the group are often the business or community operators of other exchanges, which greatly increases the customer acquisition cost of the exchange.
What is a blockchain
Blockchain is a new application mode of computer technology such as distributed data storage, point-to-point transmission, consensus mechanism and encryption algorithm. The so-called consensus mechanism is a mathematical algorithm to establish trust and obtain rights and interests between different nodes in the blockchain system.
What is an exchange
As we all know, the exchange is actually a platform for trading. Some of their platforms can carry out leveraged trading, quantitative trading, contract trading and other operations.
What are the benefits of blockchain exchanges
The advantage of exchange on the blockchain is that the exchange does not hold a large number of cryptocurrencies of users, and all cryptocurrencies will be stored in the wallet or smart contract control of users on the blockchain. The exchange that originally needed trust centralization now only needs to trust blockchain and smart contract. Most smart contracts used in exchanges will open the source code so that everyone can confirm the details of the contract.
The centralized exchange usually does not disclose the source code of transaction details. In fact, only its internal personnel can know how to operate. Open smart contracts maintain the transparency and security of the transaction process, and even profitable splits will be made public on the blockchain.
1. Strong dependence: the application software must be supported by computer hardware and system software to play a role, but cannot exist and play a role independently;
2. Strong interactivity: even the simplest application software also has certain interactive functions, such as the prompt of errors to operators, which is the embodiment of the most fundamental advantages of products in the IT industry;
3. Unlimited quantity: digital assets are scarce as assets (because not all enterprises or individuals can create digital assets), but its supply can be unlimited. Tangible assets are always limited due to the limitation of enterprise property and storage space;
What functions should the exchange have
1. High performance is to ensure that the work of the trading system is continuous and uninterrupted. Any trading instruction and its response arrive in order and cannot be lost. At the same time, the trading system also needs to have fault tolerance function to ensure that it can continue to operate continuously in the case of a single point of failure. High performance means that the trading system can work normally under the pressure of large-scale trading instruction flow.
2. Distributed and memory matching. Distributed deployment is to make the system more secure and expand the bearing capacity horizontally. Therefore, the distributed deployment architecture needs the support of multiple servers, and the number of users can be increased in the later stage. Memory matching can better meet the needs of high transaction in the current market than database matching. Memory matching is faster, which effectively increases the matching ability of the exchange system.
3. Support for multiple markets and multiple instruction types. In terms of architecture, the system supports clearly classified transaction and clearing rules to support a variety of transaction modes. After introducing a variety of market rules, the system supports stop loss and market order including limit order.