TKEY Online. Part Three: The Exchange

Introduction

The time of trading halls has long passed. Modern exchanges are large IT infrastructures that include a whole range of systems. Just note that cryptocurrency exchanges can differ significantly from exchanges that operate in the classical financial market. There are significant differences both in the IT infrastructure and in the trading models, and the market itself behaves differently.

Exchange infrastructure

As mentioned at the very beginning of the material, professional exchanges are large-infrastructure. And when creating the entire TKEY ecosystem, the team was guided by the principles of an infrastructure, platform-based approach to achieve positive results in the future.

The TKEY exchange

Gateways

Applications act as gateways that connect to a decentralized exchange. TKEY Online is a gateway through which the user connects to the exchange infrastructure.

Decentralized architecture

The decentralized architecture aims to solve the problems that are inherent in centralized exchanges. Using the distributed system TkeyNet, market participants store funds independently and manage them; the parties do not have exchange risks.

Simplified scheme of interaction between the TKEY Online gateway and the TKEY ecosystem

Understanding the components of an exchange

A centralized exchange consists of various systems necessary for implementing specific functions of the exchange and ensuring its smooth operation.

Matching Engine

The Matching Engine is the trading core of the exchange. The engine performs the process of executing orders (buying/selling) from various market participants.

Matching Engine (The TKEY Exchange).

Priorities for order execution

Order execution priority: price — time. Bets and bids entered first into the matching system take precedence over similar bids or those subsequently entered into the system.

Market makers and cross-currency transactions

The speed of order execution should consider in several dimensions: technical and economic.

  1. Attracting partners who will join the system as market makers.
Cross-currency transactions

Impact of cross-currency transactions on exchange transactions

Now we will analyze cross-currency transactions at the level of the system and the exchange to understand their advantages both for the user and highlight their role in ensuring the speed of order execution on the exchange.

Cross-currency transactions

Highly liquid market

This approach creates a highly liquid market. As you have already understood, the user can use applications outside the exchange, but most of the transactions will pass through it, which will affect the increase in liquidity.

Completing testing, integrating, and launching TKEY Online

We tell you what processes have already been completed and what awaits us soon.