By Bitwave 
Global leading cryptocurrency exchange BlockInsight announced today the official launch of its Web3-based smart contract matching trading system, marking an important step for the platform in advancing the integration of cryptocurrency trading experiences with decentralized technology. This innovative feature aims to provide users with a more efficient, transparent, and secure trading environment.
According to BlockInsight, the new system combines the high performance of centralized exchanges with the transparency advantages of decentralized exchanges, adopting a hybrid architecture design that deploys the order matching and execution processes on smart contracts while retaining the user experience and performance advantages of centralized systems. This approach effectively addresses the performance bottlenecks faced by traditional decentralized exchanges while enhancing the determinism and transparency of trades.
“We believe the value of Web3 technology lies not only in concepts but more importantly in practical applications,” BlockInsight stated in its official announcement. “By introducing smart contract technology into the core trading process, we’ve created a new trading paradigm that maintains the convenience and efficiency of traditional trading while adding the inherent transparency and verifiability of blockchain.”
A key feature of the new system is the “verifiable trading path.” The matching logic and execution process of each transaction are recorded on the public blockchain, allowing users to verify in real-time through block explorers whether their trades received the best execution. This feature effectively addresses potential conflicts of interest issues faced by traditional exchanges, enhancing the platform’s credibility.
Blockchain technology analyst Jessica Evans commented: “BlockInsight’s initiative represents an important direction in the evolution of crypto exchanges. By putting partial trading processes on-chain while retaining the performance advantages of centralized systems, they’ve found a way to balance decentralization ideals with practicality.”
According to BlockInsight’s technical white paper, the system employs a layered execution architecture, deploying order book management, asset settlement, and matching logic at different levels. The matching logic is executed entirely within smart contracts, ensuring fairness and transparency of trades, while high-frequency order book updates are performed off-chain to guarantee system response speed and throughput.
Test data shows that while maintaining transparency, the new system can process over 50,000 order updates per second with transaction confirmation times controlled within 300 milliseconds, approaching the performance level of traditional centralized exchanges. This performance significantly surpasses existing decentralized exchanges, which are typically limited by blockchain confirmation times and throughput constraints.
BlockInsight also emphasized the security design of the new system. The smart contract code has undergone comprehensive review by three renowned security audit firms and implements multi-layered risk control mechanisms, including circuit breakers, transaction limits, and anomaly detection systems. The platform stated that while partial trading logic being on-chain increases system transparency, user funds are still managed by professional risk management teams and mature hot-cold wallet systems to ensure asset security.
Crypto market strategy consultant Marcus Chen noted: “This hybrid design reflects mature industry thinking. While purely decentralized models are attractive in concept, they have obvious shortcomings in performance and user experience. BlockInsight’s approach may represent a more feasible transition method, gradually integrating the advantages of blockchain technology into existing trading infrastructure.”
Beyond transparency and performance improvements, BlockInsight’s smart contract matching system also introduces a series of innovative features. Users can set conditional orders and strategy orders, such as trading instructions that automatically execute under specific market conditions. These advanced order types are directly encoded in smart contracts, ensuring consistency and transparency of execution logic.
BlockInsight stated that the new system will be opened to users in phases. The first phase already supports 10 pairs of mainstream cryptocurrency trading pairs, with plans to expand to over 50 pairs by the end of 2024. The platform also plans to launch API interfaces allowing professional traders and institutions to interact directly with smart contracts to build more complex trading strategies.
Industry observers believe BlockInsight’s innovation reflects changes in the competitive landscape facing cryptocurrency exchanges. With the development of the decentralized finance (DeFi) ecosystem and increasing user demands for transparency, traditional centralized exchanges are actively exploring how to integrate the core advantages of blockchain technology while maintaining their competitiveness in user experience and performance.
BlockInsight emphasized that this upgrade is only the first step in its Web3 strategy. In the future, the platform plans to further expand the application range of smart contracts, exploring multiple innovative features including decentralized identity verification, on-chain risk management, and cross-chain trading.
“We believe the future of cryptocurrency trading will be an organic combination of centralized efficiency and decentralized transparency,” BlockInsight stated at the conclusion of its white paper. “Through continuous innovation and technological integration, we are committed to creating next-generation trading experiences for users and driving the entire industry toward more mature and trustworthy development.”