I have been thinking about this for a little while because I am trying to understand the technology behind the crypto exchange. How do they work? Is it very difficult for a trader or ordinary investor to set up his own exchange? If you know anything about this issue please tell us through comments.
One exchange can be used by over 1 million people and every service will be done perfectly and again on time! No matter there will be 100,000 transactions of different currencies at the same time but all customers will receive their coins without any hassle! Now, what enables all of this?! And how do they generate different wallet addresses for their users to send and receive coins/tokens?! Managing the money of more than one million people is a very difficult task but for the owners of the exchanges, it seems normal to them although they have their challenges as well.
What do you think happens when you exchange one coin to another on exchanges? I'm not very sure about this but I think the technology used in currency conversion is probably not very different from keeping data such as in excel. I mean maybe here the exchanges can have a database of all their clients' accounts and then when you exchange these currencies they complete your transaction by changing your balance in their database (backend) and after that, you will see your new balance in your account (frontend). But if this is the case, then how can they complete up to 1000 trades in one minute?! Do they do manual or is there a specific technology to complete those trades as well as to set the calculations in their database? And if they're using such technology in their database, what securities do they use to protect that technology and their database as well?!
Another question. Who manages some of the new coins and tokens listed in different exchanges? Is it that the owner of that coin/token has his own dashboard where he can do everything on his coin or what is being done in this? For example exchange like Binance, do they manage their database only for its token (BNB) or even database for all currencies that they have in their exchange? I mean a coin like BTC if within the Binance exchange, is it the Binance team they manage, or is it the BTC team they are given their dashboard and manage their currency in Binance exchange?
What is needed to create your own exchange? Is the cost too high? Will you need any team in this (a team with which skills)? Can anyone create his own exchange?
These things confuse me a lot and I want to know them in more detail! If anyone knows any of the questions I asked help me please, thank you!
Posted Using LeoFinance Beta