Exchange Trust Score™

In today's rapidly evolving digital assets landscape, trust is the cornerstone of success. Modulus, in partnership with Modulus, is proud to introduce a groundbreaking solution that revolutionizes the way we establish and maintain trust in exchanges, particularly those dealing with digital assets and cryptocurrencies.

The Modulus Exchange Trust Score System is a testament to our unwavering commitment to innovation and our dedication to empowering our clients with cutting-edge technology. By seamlessly integrating state-of-the-art accounting server software with blockchain technology, we have created a system that ensures transparency, security, and accountability.

When an exchange operator implements our accounting server software, it meticulously tracks and maintains a counter of the order book, trades, deposits, and withdrawals associated with the exchange. This counter is then securely inserted into a blockchain, providing an immutable record of the exchange's activities. Rest assured, the actual order, trade, deposit, and withdrawal data remain confidential, as only a hashed value is stored on the blockchain, ensuring the privacy of sensitive information.

To further enhance the robustness of our solution, we have partnered with leading custodial service providers, such as BitGo or Fireblocks. These trusted entities run a separate instance of the Modulus accounting server software, maintaining hashed values and providing API endpoints for seamless integration with our Exchange Explorer App.

With the Modulus Exchange Trust Score System, regulators and interested parties gain unparalleled insights into the integrity of exchanges. Our user-friendly Explorer App offers a comprehensive snapshot of an exchange's Trust Score, enabling users to make informed decisions based on real-time data. By comparing the counter values from the blockchain, the custodial service provider, and the exchange's accounting server, our system swiftly identifies any discrepancies, providing an additional layer of security and transparency.

But we don't stop there. Our Explorer App goes beyond simple comparisons, offering users the ability to visualize the exchange's performance through intuitive line graphs. These graphs showcase trends in orders, trades, deposits, and withdrawals, empowering users with valuable insights while maintaining the confidentiality of actual currency amounts.

At Modulus, we understand the importance of trust in the digital age. With the Modulus Exchange Trust Score System, we are redefining the standards of transparency and accountability in the world of digital assets and cryptocurrencies. Join us on this transformative journey as we shape the future of trust in the digital realm.

Why It Matters

Centralized digital exchanges operate as a third-party facilitating the trade of assets. Those trades are not P2P, nor are they recorded onto the blockchain as they would be with a decentralized exchange. Users put their faith in the exchange to process transactions appropriately, a trade-off they make because centralized exchanges process trades at a much faster rate than decentralized exchanges. Unfortunately, there is no assurance to the user that the exchange is processing transactions correctly and in the appropriate order. Transaction data provided by an exchange may be manipulated or misreported.

Modulus Exchange Trust Score System™ as a Feature

The bedrock of any exchange is its reputation, and, for too long, digital asset exchanges have been in the news for all the wrong reasons. Even exchanges which are among the most popular in their geographic region have been shown to have been shown to have engaged in chicanery over the years. Traders want to know that their assets are secure.

The Modulus Exchange Trust Score System allows exchanges to provide proof that they are operating above board. Without giving away any proprietary data, an exchange can advertise its trust score, backed by one of the most trusted name in FinTech: Modulus. Through this system, Modulus can verify that an exchange is operating in compliance with regulatory requirements and in good faith. That verification is a strategic differentiator for an exchange that is competing for users against so many others. It is easy to see the marketing and branding implications this system could offer a well-run exchange.

Verification by a Name You Can Trust

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

For years, we have been leading the charge for greater trust and accountability in the digital assets space. Just this year, Modulus launched a groundbreaking Blockchain-as-a-Service offering, an enterprise blockchain for decentralized verification and tracking, featuring cutting-edge AI-based capabilities. In 2018, Modulus launched a market surveillance and risk management solution, which targeted abuse within cryptocurrency markets. Modulus developers are well-versed in creating solutions that crackdown on bad actors, while allowing exchanges to differentiate themselves based on their commitment to security.

Contact us today to schedule a demo, and prepare your exchange for the coming regulatory burdens! See the Modulus Difference in action.