Decentralized Architecture

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.