Key Functions of the Exchange Node
Interacting with Users: The exchange node serves as the primary interface for users to submit their trading orders and inquiries, ensuring user commands are accurately captured and processed.
Maintaining the Order Book: It is responsible for keeping an updated ledger of buy and sell orders, known as the order book. This includes recording new orders, updates, and cancellations, providing a real-time snapshot of market activity.
Matching Orders: The node matches buy and sell orders based on trading criteria such as price and quantity. This involves pairing compatible buy and sell orders to execute trades.
Sending Settlements: Once orders are matched, the exchange node facilitates the settlement process, ensuring the transfer of assets between the trading parties in accordance with the matched orders.
Relaying Messages to Different Chains: It plays a critical role in cross-chain interoperability by relaying messages and transactions to other blockchain networks, enabling trading activities across different blockchain environments.
Acting as an Oracle: The node can function as an oracle, fetching and verifying data from external sources to be used within the blockchain, such as market prices or event outcomes.
Last updated