Orders.Exchange - Full Protocol DEX Run on BTC
  • Overview
    • What is Orders.Exchange
    • Why create Orders.Exchange?
  • Orderbook DEX
    • Overview
    • Technology & Theory
      • PSBT
      • 0-Sec Multi Transactions
      • Ask Orders
        • Technical flowchart for placing ASK orders
      • Bid Orders
        • Technical flowchart for placing BID orders
      • Nostr Proposal
        • NIP-100
    • Audit Report
    • Service Fee
    • Trade to Burn
  • Orders Swap & Liquidity Pools
    • Orders Swap
      • Overview
      • Technology & Theory
        • Decentralized Architecture
      • Service Fee
      • Swap to Burn
    • Orders Liquidity Pools
      • Overview
      • Technology & Theory
        • Threshold Multisignature
        • Cold-Hot Wallet Isolation
      • Stake to Earn
      • Service Fee Sharing
    • Audit Report
  • Orders Bridge
    • Overview
    • Technology & Theory
    • Audit Report
    • Service Fee
  • Minting is Liquidating
    • Minting is Liquidating
    • Principle Workflow
    • Stake to Earn
    • Service Fee
  • Tokenomics
    • $RDEX
  • Roadmap
    • Orders Roadmap
  • FAQ
    • How to Earn $RDEX?
    • Why does $RDEX have almost half of its tokens in one address, and does this pose a risk?
    • What is the buyback timing and frequency for $RDEX?
    • How does P-LP differ from regular LPs? Do I need to lock my assets?
    • Why are there different reward multipliers in P-LP? How should I choose which multiplier to go for?
    • Is the liquidity I provide to P-LP safe? How can its safety be assured?
    • Why does P-LP differentiate between uni-directional and bi-directional liquidity? What's the differe
    • How are funds transferred between the buyer's and seller's wallets, and do my tokens leave my wallet
    • From a technical perspective, what happens when canceling an already placed buy/sell order?
    • Is the liquidity pool for Orders fully decentralized, and how is it achieved?
    • The world's first Bitcoin-native network supported BID system: How it came into existence
    • How many $RDEX tokens are released daily, and how is it done?
    • After adding LP, how can I make it trade? I can't see this LP on my own trading page.
    • Can I know which P-LP I provided?
    • Why not open RDEX P-LP?
    • The transaction fees are currently high; is there a way to reduce them?
    • What's the difference between orders and other DEXs?
  • Risks & Disclaimer
    • Risks & Disclaimer
  • Team
    • Team Introduction
  • Resources
    • Orders Exchange
    • Twitter
    • Discord
    • Github
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On this page
  • What is a Decentralized Architecture?
  • Why Adopt a Decentralized Architecture for Building a Swap?
  1. Orders Swap & Liquidity Pools
  2. Orders Swap
  3. Technology & Theory

Decentralized Architecture

PreviousTechnology & TheoryNextService Fee

Last updated 1 year ago

What is a Decentralized Architecture?

Orders Swap is built upon a Decentralized Architecture, offering significant advantages in terms of decentralization and security. In this setup, the front-end module of Orders Swap solely handles basic user information and responds to user interactions but does not process transaction data. Instead, it filters this data and passes it through an intermediary module to the backend.

The intermediary module’s sole responsibility is to relay the transaction data without processing it. At this stage, the data merely represents the user's transaction intentions and is not capable of executing the transactions.

At the backend, the transaction data is sent to the asset module for processing and interacts with the Orders liquidity pool's hot wallet to complete the transactions. However, the hot wallet operates on a 2/3 multisignature (multisig) threshold, requiring the simultaneous signatures of two out of three cosigners to authorize transactions. Additionally, there's a separate multisig module at the backend managing the cold wallet assets and overseeing the threshold information from the hot wallet.

The hot wallet holds a minimal amount of assets, sufficient only for basic Swap transactions, while the majority of liquidity assets are safeguarded in a 3/5 threshold multisig cold wallet, which is offline. Any transfer from this wallet necessitates the concurrent signatures of at least three out of five parties involved, where the cosigners, apart from Orders.Exchange, are renowned security audit firms in the industry.

Despite adopting a Decentralized Architecture, the complexity of these steps is efficiently managed within a single block, thanks to Orders’ 0-Sec Multi Transactions architecture. This ensures transaction efficiency without compromising on security and decentralization.

Why Adopt a Decentralized Architecture for Building a Swap?

Utilizing a Decentralized Architecture to construct a Swap significantly enhances security:

Protection Against Hacker Attacks

Each module only processes a portion of the transaction information and is isolated from the others. This greatly increases security, as a hacker would need to breach multiple modules to hijack a transaction, thereby substantially raising the technical challenges for the hacker.

High Degree of Decentralization

Different from other similar applications, the Decentralized Architecture enables the application to be composed of several distinct modules with clear responsibilities and no overlap, making it a decentralized application in itself. This ensures substantial guarantees in security, stability, and efficiency.