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Hybrid System Architecture

Definition ∞ 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.

A complex, metallic cryptographic module with blue accents is partially submerged in a translucent blue, foamy substance. This substance forms an intricate, interconnected network of bubbles, suggesting a dynamic interaction. The central mechanism embodies a robust consensus algorithm, potentially facilitating transaction validation or smart contract execution within a distributed ledger technology environment. The surrounding network visualizes the propagation of data packets or the dynamic flow within a liquidity pool, underscoring the interconnectedness of blockchain infrastructure.

→Institutional DLT Adoption

→Enterprise System Integration

→Market Structure Evolution

SWIFT Integrates Blockchain Technology to Modernize Global Cross-Border Payments Infrastructure

This strategic pivot integrates DLT into the core messaging layer, mitigating counterparty risk and reducing operational friction in the $700 billion global remittance market.