Optimizing Crypto Connectivity: A Cost-Effective, Flexible Alternative to Cloud Dependency
Introduction
The cryptocurrency ecosystem has experienced remarkable growth over the past decade, bringing with it unique infrastructure challenges. One prevalent misconception in the industry is that achieving low latency for high-frequency trading (HFT) or real-time market updates requires collocating within the same public cloud as crypto exchanges and market data providers. While this approach works for some, it is neither the most efficient nor the most flexible solution.
At A-FieldTech, we believe there’s a better way. Our recent Proof of Concept (POC) tests using the A-FieldTech Edge Compute platform showcase how advanced edge compute infrastructure can match the low-latency performance of traditional setups while offering greater flexibility, cost-effectiveness, and operational efficiency. In this blog, we’ll explore how our solution addresses the challenges faced by crypto traders and service providers.
The Low-Latency Myth: Public Cloud vs. Private Links
Public Cloud: Strengths and Limitations
Public cloud platforms have become the default choice for many cryptocurrency exchanges and service providers. While they offer convenience, scalability, and proximity to other market participants, they also introduce challenges:
Uncontrollable Routing: Network paths in public clouds are dynamic and often optimized for cost rather than performance.
IPv4 Limitations: The scarcity of IPv4 addresses in public clouds can result in higher costs and inefficiencies.
Vendor Lock-In: Relying solely on a single cloud provider limits flexibility and can inflate operational expenses.
Private Links: A Costly Alternative
Private connections, such as leased lines or direct peering, are often touted as the solution for low-latency trading. However, they come with significant drawbacks:
High Costs: Setting up and maintaining private links is prohibitively expensive, especially for smaller traders or firms scaling into new markets.
Operational Complexity: Managing direct connections to multiple exchanges across different regions adds complexity and rigidity to infrastructure planning.
The Facts!
For example, using the Binance API, even if your virtual machine (VM) is in the same region and availability zone, calling the API from Tokyo via AWS doesn't confer a significant advantage. This is because the request still routes through CloudFront (AWS’s Content Delivery Network), which standardizes the performance. This condition also applies to other exchanges like Bitbank, Liquid, and Bitflyer, where routing inefficiencies inherent to the public cloud model can negate the benefits of close proximity.
By focusing on these nuances, it becomes clear that public cloud environments often fail to deliver the true low-latency performance required for competitive cryptocurrency trading. This is where alternatives like edge compute infrastructure come into play.
A-FieldTech’s Solution: Edge Compute for Crypto Trading
Recognizing these challenges, we developed the A-FieldTech Edge Compute platform—a highly distributed infrastructure designed specifically for the unique demands of crypto trading. Our platform eliminates the need for rigid private links and mitigates the inefficiencies of public cloud reliance, delivering comparable low-latency performance.
Proof of Concept: Tokyo and Seoul
To validate our approach, we conducted a POC test connecting to several prominent cryptocurrency exchanges in Tokyo and Seoul, two major hubs for crypto trading. Here’s what we found:
Comparable Latency Performance: By leveraging A-FieldTech Edge Compute, we achieved latency metrics comparable to direct private connections or collocation in the same cloud. This proves that advanced edge computing can bridge the gap between public cloud and private connectivity.
Cost Efficiency: The POC demonstrated significant cost savings by removing the need for expensive private links while still delivering low-latency connections.
IPv4 Accessibility: A-FieldTech’s solution includes access to a large pool of IPv4 addresses at a fraction of the cost of public cloud alternatives, ensuring scalability and long-term viability.
The Ping Test Results
Tokyo Ping Test Table
api.bitflyer.com
2.4
1.5
2.5
0.9
api.liquid.com
2.0
2
2.6
1.3
api.bitbank.cc
1.2
2
2
2.5
api.binance.com
2.3
1.7
2
2.7
Seoul Ping Test Results
api.binance.com
1.6
1.8
3.1
1.3
1.7
api.coinone.co.kr
3.4
2.8
4.3
2
1.2
api.korbit.co.kr
3.1
2.8
4.4
1.9
0.9
api.kucoin.com
3.1
3.2
3.2
2.2
1.4
Proof of Concept (POC) Findings: Crypto Trading Infrastructure
Infrastructure Combination:
Achieves low-latency performance for connections to crypto exchanges.
Avoids dependence on expensive private links and public cloud lock-ins.
Challenges with Public Clouds:
Faces issues with uncontrollable routing and limited IPv4 availability.
The Network is blackbox.
Benefits of A-Field Tech Decentralized Infra:
Features highly distributed data centers.
Offers optimized and transparent network.
Includes access to a large, cost-effective IPv4 pool.
Ensures infrastructure is tailored to meet the unique demands of crypto trading.
Simple Charging model.
Looking Ahead
The cryptocurrency trading landscape is evolving rapidly, and so are the infrastructure demands of the ecosystem. Traders and service providers no longer need to be locked into a single cloud provider or rely on costly private connections to achieve low latency.
With A-FieldTech’s Edge Compute platform, you gain the performance of direct private connections, the flexibility of a distributed edge architecture, and the cost efficiency needed to stay competitive in the crypto trading space.
As our POC tests in Tokyo and Seoul have shown, edge computing is the future of low-latency trading infrastructure. By adopting this approach, you can optimize your operations, reduce costs, and gain the competitive edge needed in today’s market.
Final Thoughts
The journey to building efficient, scalable, and high-performance crypto trading infrastructure doesn’t have to be complicated or costly. A-FieldTech’s Edge Compute platform is here to simplify that process while delivering the performance you need.
Get in touch with us today to explore how our platform can transform your trading experience.
📧 Email: ConsoleSupport@a-fieldtech.com
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