Platform Functions
Intelligent Quote System
At the core of CipherX’s operational efficiency lies its Intelligent Quote System, a proprietary algorithm designed to identify the most cost-effective and secure route for every transaction.
For private swaps, the algorithm coordinates two independent exchanges — an intake exchange (Exchange 1) and an outtake exchange (Exchange 2) — working in tandem with a randomly selected Layer 1 privacy bridge. This system ensures optimal transaction rates while maintaining the highest possible level of privacy and integrity throughout the process.
Transaction Flow
CipherX’s transaction pipeline is built on precision and compliance, executing a structured sequence of API interactions with each participating exchange. These steps guarantee transactional efficiency, data protection, and AML compliance without compromising user anonymity.
Exchange 1: Intake Phase
Unique Deposit Address – Exchange 1 generates a one-time-use deposit address for the user to send funds, enhancing both security and traceability control.
AML Screening – The exchange conducts a standard compliance check to confirm the funds are not linked to illicit activity.
Randomized Layer 1 Swap – The received tokens are converted into a randomly selected Layer 1 asset, which acts as a privacy intermediary.
Forward to Exchange 2 – The anonymized Layer 1 asset is then sent to a freshly generated wallet address created by Exchange 2.
Exchange 2: Outtake Phase
Receive Randomized Layer 1 Asset – Exchange 2 generates a unique deposit address to receive the anonymized asset.
AML Screening – Compliance checks are performed to validate the legitimacy of the incoming transaction.
Swap to Destination Token – Exchange 2 converts the Layer 1 asset into the user’s chosen token.
Send to Final Wallet – The converted token is dispatched to the recipient’s address, completing the transaction.
Privacy Integrity
This dual-exchange system, combined with randomized Layer 1 routing, completely severs the on-chain connection between sender and receiver. Neither exchange has full visibility of the transaction, ensuring true end-to-end privacy for all CipherX users.
Last updated