TXA is Building the Infrastructure to Power Next-Gen Hybrid Centralized / Decentralized Exchanges (Part 2 of 2)

How the TXA Decentralized Settlement Layer makes possible exchanges with the best features of both CEXes and DEXes

Fomocraft
Fomocraft
Sep 8 · 5 min read

In part one of this two-part article, we took an in-depth look at the problems plaguing centralized and decentralized cryptocurrency exchanges respectively which inspired the creation of the TXA Decentralized Settlement Layer (DSL). In summary, centralized exchanges have counterparty risk, lack of transparency, and have privacy issues. Meanwhile decentralized exchanges are often slow, expensive, have low liquidity, are limited to a single blockchain, and have limited order types. Over at project TXA, we’re simply not willing to compromise on any of these issues, and that’s why we set out to create the TXA DSL to allow for the creation of hybrid centralized/decentralized exchanges which provide the best features of both!

The hDEX is Made Possible by Decoupling Custody and Settlement from the Order Book

How Does the TXA Decentralized Settlement Layer Work?

Users begin trading by locking up collateral in their TXA smart contract wallet and then creating orders based on the value of the collateral in their wallets. Users sign their orders and then submit them to an exchange. The exchange’s matchmaking engine looks for corresponding orders from other traders to match the first trader’s order. When trades are matched, the matched trades are broadcast to the SDO network. The SDO network records all matched trades and optionally writes them to a high-speed decentralized ledger such as ICP or Hedera Hashgraph. Traders may then continue trading based on the value of their locked collateral as long as they like until they decide to settle their balance. All this trading is happening at centralized exchange speeds, and no on-chain transactions are required before settlement. When the user decides to settle their account, they issue a transaction from their smart contract wallet which triggers the SDO network to share information about the outstanding balance on-chain. Based on that information, the settlement is completed. Read more about SDOs here.

Benefits of Decoupled Infrastructure

Lowered Legal Burden

Privacy and Security

Performance

Meet Tacen, the first Exchange Building on the TXA Decentralized Settlement Layer

This concludes part 2 of 2 of this article series. Make sure to follow us on Twitter to get notified of new content and other announcements!

About ProjectTXA

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ProjectTXA

TXA project aims to create cross-chain decentralized settlement layer for hybrid exchanges.

ProjectTXA

TXA project aims to create cross-chain decentralized settlement layer for hybrid exchanges such as Tacen Platform. TXA token is a utility token of the TXA Settlement Layer that will ensure that trust is minimized for the settlement of peer-to-peer trades.

Fomocraft

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Fomocraft

ProjectTXA

TXA project aims to create cross-chain decentralized settlement layer for hybrid exchanges such as Tacen Platform. TXA token is a utility token of the TXA Settlement Layer that will ensure that trust is minimized for the settlement of peer-to-peer trades.