The GXOS, Simplified
We constantly tout that Global X Change is the world’s first “Exchange Operating System”, but what does that actually mean? In this article, I aim to expose the GXOS (Global X Change Operating System) for what it is.
The GXOS is what happens when you “unpack” a stereotypical exchange. Since “Exchange Mechanics” are rarely taught to users, we suspect that most readers won’t see the inherent value of “unpacking” an exchange. To put it simply, exchanges has systematically consolidated the ancillary functions of trade to optimize for control (for them) and cost (for them). However, there is no doubt that some of these efforts on behalf of exchanges have added value to the end user.
Especially in the domain of speed and order liquidity. Also, this control for speed trade-off would be something that we could live with. However, with the invention of the tokenized asset, we see the need to rethink this “one size fits all” trading infrastructure.
“If there isn’t a current market for a particular asset class, just create one”
Everything stocks to video game characters will have a secondary market for representative token trading. It is in this type of dynamic environment that the GXOS is not just tenable but fundamentally necessary.
The GXOS is an operating system composed of several asset-agnostic applications. These endow traders with the ability to control their transaction on any open marketplace. The GXOS can disseminate into 5 layers that will continue to improve with the help of our #GXNation community.
Layer 1: GXLive — The Data Visualization Layer
GXLive serves a specific function for users and everyone who wishes to partake in GX need not use it. It is a dashboard that allows users to visualize all the data that process through the OS. The best way to think about you’re GXLive account is like your “desktop” folder in a PC. Similarly, it organizes the applications and helps you navigate across a seemingly complex OS. From here, you can access market news, analyst reports, community generated trading signals and many more tools which can augment your trading experience. However, your GXLive account also offers custodial wallets that you can use to store you’re the actively traded capital.
Layer 2: GXTerminals — The Data Processing Layer
The GXTerminals are two trading terminals that use to process the data coming in from the market you wish to engage with. Also, these terminals will be available as a hosted solution through you’re GXLive account. A more customizable version of the terminal will release in 2020 as an open SDK for onsite trading. There are two GXTerminals.
1. GXAccess: Is the default trading application that one can use for everyday transactions. It presents a simplified solution for quick trades and introductory technical analysis. GXAccess is completely free and open for anyone to use.
2. GXInstitutional: Is an industrial grade trading terminal built with high-frequency trading as the focal point. This garnishes an advanced interface which the institutional traders will use.
Layer 3: GXRouting Engines — The Routine Layer
This may be the most consequential innovation that the GXOS is putting forth. The pretense is that exchange should be interoperable between asset classes and exchanges. Users should be able to custody their own assets but still, access the liquidity offered by different marketplaces. However, by leveraging the GXRouting Engines, you are able to select which platform you want to place your trade on and route it directly from your GXLive account.
There are three types of routing engines that we are building.
1. GXTrade — Is a routing engine that connects your GXLive account to over a 150 of the worlds leading exchanges without having to send your funds to set exchange
2. GXDecentral — Is a routing engine that connects your GXLive account to any decentralized exchange in the world.
3. Securities — Is a routing engine that connects your GXLive account to various securities exchanges to access the equity markets.
Layer 4: GXMarkets — The Execution Layer
Once the order has been routed to your desired destination, the trade is now in the “execution stage” of its life cycle. Depending on where and how you routed your order, this layer will be slightly different. At this point, we have limited control over the trade as this layer is largely outsourced to the institutions that provide the liquidity for you trade.
1. If you used GXTrade — You order is now an open request waiting to be filled on the centralized exchange that you choose. Similarly, once the order is filled, the trade will be complete.
2. If you used GXDecentral — Your order is either filled on the GXMarkets or routed directly to the DEX which you choose.
Layer 5: The Blockchain Layer
Each trade will ultimately settle on a given blockchain protocol. In order to assure that your order has been verified by on the respective protocol, we have built a blockchain explorer that is specific for traders. Also, it functions as an auditing platform for all the transactions performed through the GXOS.
There you have it, a simplified explanation of the GXOS and its functionality. We believe that the induction of the GXOS in the cryptocurrency markets is a collective step toward a more open exchange environment.
