Hybrid Exchange

Definition ∞ A hybrid exchange combines elements of both centralized and decentralized trading platforms to offer a balanced approach to digital asset trading. These exchanges often feature a centralized order book for speed and efficiency, while employing decentralized settlement mechanisms for enhanced security and user control over funds. They seek to reconcile the benefits of both models.
Context ∞ The concept of hybrid exchanges is a response to the trade-offs inherent in purely centralized or decentralized models, aiming to provide a superior user experience. Discussions frequently revolve around the optimal architecture for achieving both high performance and robust security. Future developments will likely involve continued innovation in balancing these attributes to attract a broader user base.