Hybrid System Architecture refers to a design approach that combines elements of both centralized and decentralized systems. This structure seeks to leverage the strengths of each model, such as the efficiency of centralized components and the resilience of decentralized ones. It often involves a central authority managing certain aspects while others operate on a distributed ledger. This design attempts to balance performance, security, and control.
Context
News reports frequently mention Hybrid System Architecture in discussions about enterprise blockchain solutions and central bank digital currencies (CBDCs). These designs aim to meet specific regulatory and operational requirements not fully addressed by purely decentralized systems. The debate often centers on the appropriate balance of centralization and decentralization for particular applications.
This strategic pivot integrates DLT into the core messaging layer, mitigating counterparty risk and reducing operational friction in the $700 billion global remittance market.
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