An exchange-embedded blockchain refers to a distributed ledger technology that is directly integrated within a cryptocurrency exchange’s operational framework. This integration often aims to enhance settlement speed, reduce transaction costs, or provide specific functionalities native to the exchange environment. It can function as a sidechain or a proprietary layer for internal operations.
Context
News frequently covers how major exchanges are developing or utilizing exchange-embedded blockchains to improve their service offerings, particularly for high-frequency trading or specialized digital assets. The debate sometimes concerns the degree of decentralization and transparency offered by such systems compared to independent public blockchains. Future developments may involve these embedded blockchains acting as bridges to other decentralized finance applications.
This strategic integration of DLT into the national market system maintains regulatory compliance while establishing the architectural foundation for T+0 settlement and enhanced capital efficiency.
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