NEX Technology and Architecture

The landscape of digital asset trading has been dominated by two types of technologies: Centralized Exchanges (CEXs, trading 1.0) and Decentralized Exchanges (DEXs, trading 2.0). While CEXs offer superior trading technology and user experience (UX) with orderbooks, their custody and control of user assets pose a critical inherent risk which is increasingly seen as unacceptable by informed users and concerning institutional investors. On the other hand, DEXs are non-custodial, preserving user ownership of assets, but they typically utilize Automated Market Maker (AMMs) technology, which present numerous limitations compared to orderbook systems. Moreover, DEXs are prone to front-running through Miner Extractable Value (MEV) attacks, incur trading gas costs, and expose users to bridge risks for cross-chain trading.

In response to these challenges, ULTRADE introduces Native Exchange (NEX) technology—a non-custodial, bridgeless cross-chain orderbook-based trading system that combines the best of both CEXs and DEXs. NEX technology allows users to trade and manage their native assets across multiple blockchains while maintaining full custody and security of their funds. By eliminating the need for bridging, NEX technology enhances user experience by removing the complexities and risks associated with cross-chain interactions. ULTRADE’s Native Exchanges are the world’s first Trading 3.0 technology, designed to meet the evolving needs of the digital asset market.

In the next few pages we will describe the architecture of Native Exchange trading technology, its components and how they work together.