The purpose of this article is to clarify the interaction between Tacen and TXA.
Tacen is a cutting-edge U.S.-based software company with over 20 team members and growing fast. We build things. At the moment, in addition to other cutting edge projects, we are hard at work at bringing to fruition a new generation of crypto exchange. We are currently designing, among other things, the merging of centralized order management with decentralized settlement to create the world's first hDEX (Hybrid-Decentralized Exchange, learn more here). We have been designing our hDEX model every day since Tacen was founded in 2019. Trading on the hDEX essentially means that you create and hold the private keys to your own Smart Wallets, collateralize money into that Smart Wallet from one of your personal wallets (such as Metamask), submit trades to our centralized orderbook, and have those trades matched by an Exchange Platform on the hDEX. Our centralized orderbook assures astonishing trade speed with a high order output. We will be the first architecture to support CEX-like trade speeds while also protecting user privacy and funds by not requiring centralized fund custody. At this point, the question of decentralized settlement comes to the center of our architecture. This is where TXA's role becomes clear.
It should be noted clearly that TXA and Tacen are two totally separate enterprises. Tacen is utilizing TXA to provide decentralized settlement services. The TXA Ecosystem and its TXA Decentralized Settlement Layer is a decentralized and community-operated general-purpose layer that provides settlement data services for "Exchange Platforms" that choose to build on this shared settlement layer. Matched trades are broadcast from any number of Exchange Platforms, such as Tacen's future flagship exchange, to community-run Settlement Data Oracles (SDOs) that exist on TXA's Decentralized Settlement Layer. These SDOs then in turn store trade data, publish trades on to an immutable ledger (such as DFINITY's Internet Computer), and handle the settlement of matched trades. All code for the SDOs (and Smart Wallet smart contracts within Tacen's Exchange ecosystem) will be open sourced, audited, and can be compiled/deployed to participate in the Decentralized Settlement Layer.
It is key to understand as well that Tacen does NOT have a token. TXA, the utility token for TXA's settlement services, is not Tacen's token. The token's use is entirely within the TXA Decentralized Settlement Layer and may be utilized on exchanges that are leveraging it for settlement services.
As previously stated, Tacen is a software company that has participated in the construction and design of a decentralized ecosystem, which utilizes a token. Tacen's traditional organization means that ownership in Tacen is expressed through equity rather than a token. TXA does not represent any kind of stake in Tacen, much the way that a token used within a decentralized ecosystem built by a publicly traded company would not represent an ownership stake in the company itself.
The TXA Project - Supporting Multiple Exchange Platforms
TXA's Decentralized Settlement Layer is entirely expandable, meaning that it can be extended through the TXA Governance Process to support any exchanges that wish to use it, and integrate through open source development to support an increasing number of exchanges. Therefore, the TXA project can support multiple exchange platforms operated by any entity that wishes to apply.
TXA's Decentralized Settlement Layer serves as a hub for a quorum of Settlement Data Oracles (currently a minimum of 10) to reach a consensus on P2P obligations to finalize settlement. SDO operators have the freedom to charge a settlement fee for their services per trade, which leads to the further democratization of the exchange process. In other words, an SDO serves as a type of node in the Decentralized Settlement Layer that receives trading data, supports the process of trade settlement, and gives SDO operators space to take ownership in the entire operation.
Tacen is the first open-source contributors on the TXA Project and intends to use the TXA Decentralized Settlement Layer as the medium by which settlement is done. The entirety of the TXA Ecosystem will be transparent, open-source, and easily auditable by anyone. Openly broadcasting trades to SDOs ensures that the platform will be very easy to audit and prove that all orders are being handled in a fair and determined process.
In our vision, the TXA Project will expand to encompass supporting many exchange platforms and take a life of its own, which we fully intend to support from the start.
TXA Token & Governance
TXA is the utility token for TXA's Decentralized Settlement Layer. It may be used as a fee replacement on exchanges that use the TXA Settlement Layer or used to stake to fulfill one of the qualifiers for operating a TXA Settlement Data Oracle and participating in TXA network governance. This is a crucial point of interest. Holders of the TXA token in the community will have the opportunity to provide decentralized settlement services to exchanges built on TXA's Decentralized Settlement Layer and will be able to charge a fee for doing so.
TXA Ecosystem Governance
As the TXA Ecosystem grows to support many more exchanges, we hope that it will be used to facilitate the settlement of many more digital assets such as NFTs and become much more global in nature. As it expands a decentralized governance is necessary to ensure that the incentive structure and voting systems are maintained.
The TXA Governance system - made up of TXA holders - will work closely with the TXA Foundation to fund and develop the TXA Ecosystem, and as time passes Tacen will take a smaller role in the open-source technology contributions. We believe that is it possible to build a global, fast, hybrid decentralized (hDEX) exchange network that is fully run by the users and true to the goals of blockchain and Web 3.0.