Matching Engine
The algorithm that pairs buy and sell orders in exchanges based on rules like price-time priority.
What is Matching Engine?
Matching engines process orders at high speeds; centralized ones on Binance handle millions per second, while decentralized variants on DEXs use blockchains. In CLOBs, they enforce FIFO at each price level.
Hybrid models like HollaEx combine CEX speed with DEX security, optimizing latency via AWS.
In DeFi, engines on dYdX or Injective support perpetuals, matching orders off-chain for efficiency before on-chain settlement.
Related Terms
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ETH is the native digital asset of the Ethereum blockchain, used for transaction fees, staking, and as a medium of exchange in decentralized applications.
Casper FFG
A proof-of-stake consensus protocol combined with LMD-GHOST to determine the head of the Ethereum Beacon Chain.
Turing Complete (Ethereum)
The ability of Ethereum’s programming environment to compute any function given sufficient resources.
Blockchain Trilemma
The blockchain trilemma refers to the challenge of balancing three core properties—decentralization, security, and scalability—in a blockchain network, where optimizing one often compromises the others.
Cross-Chain Swap
A cross-chain swap is the exchange of digital assets between two different blockchain networks, facilitated by bridges or protocols to enable interoperability.
Cross-border Payments
Payments using digital assets to facilitate fast, low-cost international transactions.