Hybrid Exchange Model

Definition ∞ A hybrid exchange model is a trading platform architecture that combines elements of both centralized and decentralized exchanges. This model typically offers the speed and liquidity of a centralized order book while maintaining user control over assets through non-custodial settlement on a blockchain. It seeks to balance performance with security and decentralization principles.
Context ∞ The hybrid exchange model is gaining traction as a potential solution to address the trade-offs between user experience and self-custody in digital asset trading. Discussions often center on the precise implementation of on-chain and off-chain components and the security implications of such designs. This approach aims to provide a more robust and compliant trading environment for a wider user base.