What Is SDP Operation?
Introduction to SDP Operation
TXA’s Decentralized Settlement layer requires Settlement Data Providers (SDPs) to function effectively and complete most of its processes. The layer doubles as a hub for SDPs responsible for the seamless settling of P2P obligations. With a launch network of at least 100 SDPs, the SDP network operates to aid different trades while also serving as a revenue platform for the operators of the providers.
The Role of SDPs in Democratizing the Exchange Industry
Right from the point that we founded TXA, one of the major goals has been to democratize the exchange industry and make room for more players. The SDP operation allows the operators to levy a fee for the data settling services they offer to traders. This is currently targeted for 0.25% of the amount in consideration and can change, subject to the community’s decision.
How SDPs Operate Similar to Mining in Blockchain
Essentially, the SDPs witness trades and record data hoping to get called for data settlements, where they can provide the recorded data to help traders determine the amount owed and the amount to be paid. The SDP operation appears in a similar manner to mining in blockchain. SDPs serve as node operators that listen to trades and support settlement processes.
Utilizing DFINITY’s Internet Computer for Data Consistency
The SDPs are designed with a local cache for easy storage of data. Following data collection in the local storage, they are then forwarded to DFINITY’s Internet Computer [IC]. DFINITY comes in to bridge the data inconsistency gap that could have occurred in the absence of a central storage system.
Suppose each SDP was allowed to provide data for settlement obligation directly from its cache system, inconsistencies could arise, which eventually would trump the entire process. Since TXA doesn’t want to use blockchain as an intermediary, DFINITY proved as the right option for that purpose.
The Importance of SDPs in Trade Settlements and Network Transparency
Clearly, the role of SDPs is intrinsic to the operation of the TXA Decentralized Layer. Openly broadcasting trades to the SDPs makes it possible for trade settlements to take place easily. This increases the exchange network’s transparency level and ensures that all deals are carried on in the fairest manner possible. This also incentivizes more traders to use the network, as they are guaranteed excellent trading speed and fair trade settlements.
Opportunities and Fairness in Operating as an SDP with TXA
Operating as an SDP with TXA is a seamless process. There is a fair chance for all SDPs to get called for trades, at each reputation level, which is still a system we’re designing. Of course, the higher the total value of settlements an SDP engages in, the more collateral will be required and ability to increase reputation. Irrespective, for SDPs at the same reputation range, they all have the same chance of getting called for data settlements.
SDPs Will Remain Instrumental To TXA’s Expansion
The TXA Decentralized Layer is open to expansion. As the network grows, we have the intention to support numerous exchanges and help with the facilitation of trading processes and data settlement. Entities interested in this arrangement will apply to get on board. Currently, TXA supports Tacen’s future flagship exchange. As the network grows, the number of SDPs offering data settlement services will also increase, as will the number of exchange platforms using the settlement layer, making for more democratization of access and creating opportunities. This aligns greatly with the goal of the TXA Decentralized Layer. In time, TXA will become the right Layer supporting the fastest and most efficient exchanges.
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