The increasing relevance of Hybrid Exchange Development

Aaron silva
3 min readMar 4, 2021

Cryptocurrencies emerged more than a decade ago and were used to conduct transactions anonymously without the intervention of a central authority. They are exchanged on trading platforms where there are a huge number of traders who either buy or sell digital assets.

Centralized vs Decentralized

While centralized and decentralized cryptocurrency exchanges have been dominating the industry since their inception, they suffer from various issues in the form of high transaction fees, hacking attacks, lack of adequate liquidity, and malicious activities.

Users can overcome the drawbacks faced in the above two types of exchanges by acquiring a hybrid crypto exchange software instead.

The benefits of involving in crypto hybrid exchange development are

  • Users retain 100% control over their funds though hybrid exchanges are directly managed by the third party operators.
  • Complete user anonymity is ensured by following various cryptocurrency regulations laid down by the certified authorities.
  • The funds are not stored on the hot wallets but kept safe in cold storage facilities ensuring no chances of hacking attacks to take place on a hybrid cryptocurrency exchange.
  • A high level of transparency is ensured which attracts users who prioritize their privacy while trading.
  • The modular architecture used by hybrid platforms is highly scalable and represents the future of digital asset trading.
Hybrid Exchange Structure

How does a hybrid crypto exchange software function?

  • All the incoming buy or sell orders are encrypted on the platform.
  • The log of the order pool or the order book is recorded on the immutable blockchain network.
  • The traders will have to send their respective private keys to the order pool which decrypts each order and sends the information to the powerful matching engine.
  • Only the matched trades of the users will be recorded immediately on the blockchain network.
  • The crypto balances of the traders will be updated periodically based on their trading history.

Analyzing the working of popular hybrid cryptocurrency exchanges in the market

  • Qurrex offers high-grade institutional exchange services. They offer white label solutions along with a professional trading platform. It is used mostly by brokers, corporate companies, arbitrageurs, and high-frequency traders. It utilizes both on-chain and off-chain protocols and manages the trading activities through an electronic communication network.
  • Eidoo helps in seamless crypto asset management and is supported by heavyweight Defi projects like Compound, Uniswap, MakerDAO, Balancer, and Aave. They also offer crypto-powered debit cards to take part in the fastly growing Defi economy.
  • Stoxum claims to be the world’s first hybrid decentralized exchange. It can handle a whopping 1 million transactions per second. Token holders get access to a detailed transaction report. It supports the top five cryptos namely Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ripple. The STOXUM token has a total supply of 200 million and the holders of each token get 100% access to the dividend revenue and can use the trading bots.

What to expect from Hybrid Exchange Development in the years to come?

They need more cooperation from investors and better trust from the users. Since they do not depend on the role of any central authorities, they need to develop foolproof mechanisms for the safe storage of cryptos by the users on their platform. Then, they can become a critical player in the growing cryptocurrency industry.



Aaron silva

Aaron Silva is a well-known cryptocurrency consultant specializing in dealing with digital trading businesses.