Exchange Architecture

Definition ∞ Exchange architecture refers to the underlying design and structure of a platform facilitating the trading of assets. This encompasses the various components that enable order matching, trade execution, data dissemination, and user account management within a trading venue. It includes elements like order books, matching engines, data feeds, and security protocols, all configured to ensure efficient and fair market operation. The design choices significantly impact an exchange’s performance, scalability, and resilience against market manipulation or technical failures.
Context ∞ In crypto news, discussions about exchange architecture often arise when comparing centralized exchanges (CEXs) with decentralized exchanges (DEXs), highlighting their differing approaches to liquidity, security, and custody. Recent news frequently focuses on innovations aimed at improving throughput and reducing latency, particularly for high-frequency trading. A key debate involves the trade-offs between centralized efficiency and decentralized censorship resistance and user control over funds.