A Stateful Protocol is a communication protocol where the server or network retains memory of the client’s previous interactions and the overall session context. This implies that subsequent requests from the client are interpreted based on the accumulated history of prior requests within that session, enabling sequential, context-dependent operations.
Mechanism
The mechanism relies on the system storing session-specific data, such as session IDs, user authentication tokens, or transactional states, across multiple request-response cycles. This stored state allows the server to recognize the client and recall previous operations, facilitating complex workflows that span several distinct communication exchanges without re-transmitting redundant information.
Methodology
The design methodology for stateful protocols often involves managing session data through databases, in-memory caches, or distributed state management systems. While offering richer interaction capabilities, this approach requires careful consideration of scalability, fault tolerance, and recovery mechanisms to prevent data loss or inconsistencies if a server fails, maintaining the integrity of ongoing sessions.
The FIX protocol is the standard for institutional trading because its stateful, high-performance design provides the reliability and precision that REST APIs lack.
API-based crypto RFQs prioritize flexibility and speed via JSON/WebSockets; FIX-based equity RFQs ensure reliability and standardization through stateful, tag-value sessions.
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