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Concept

The imperative to transition from a monolithic, message-oriented system to a decoupled, event-driven architecture is a response to a fundamental shift in the operational physics of modern enterprise. Your current system, a testament to engineering that solved the problems of a previous era, likely functions as a tightly-wound clockwork mechanism. Each gear, each component, is intricately linked, performing its function with precision within a synchronous, command-based paradigm. A request is sent, a process is executed, a response is awaited.

This model delivers reliability through rigid structure. The challenge, as you have likely observed, arises when the system must adapt, scale, or provide the real-time insights demanded by a digital-native environment. The tight coupling that once ensured stability now introduces friction, impeding velocity and creating systemic fragility. A failure in one component can cascade, halting entire process chains. Scaling one function requires scaling the entire monolith, a profoundly inefficient use of resources.

An event-driven architecture represents a different physical state. It operates on the principle of perpetual, asynchronous observation. The system’s core currency is the ‘event’ ▴ an immutable record of a business fact that has occurred. An order was placed.

A payment was processed. A trade was executed. These events are published into a central nervous system, an event streaming platform, without any knowledge of who or what will react to them. Downstream services, the new, decoupled microservices, subscribe to the event streams relevant to their function.

They listen, react, and perform their work independently, often publishing new events of their own. This creates a system of loosely coupled components that communicate through a shared understanding of business facts, rather than direct, synchronous commands.

The migration to an event-driven model is an architectural evolution from a system of direct commands to a system of observed, broadcasted facts.

This architectural shift redefines the very nature of data flow and processing within the organization. The monolithic database, a single source of truth that becomes a bottleneck, gives way to a distributed data model where each microservice owns its state. The event stream itself becomes the durable, auditable log of everything that has happened in the business. This provides a single, replayable source of truth that can be used to rebuild application state, derive new analytical insights, or train machine learning models.

The system moves from a state of periodic batch processing and request-response queries to one of continuous, real-time stream processing. The organization gains the ability to react to business moments as they happen, not after the fact. This transformation is a deep, structural undertaking. It demands a clear-eyed assessment of existing business processes and a disciplined, incremental approach to execution. The outcome is a system that is resilient, scalable, and adaptable ▴ an operational framework built for the velocity and complexity of the current and future business landscape.

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What Defines an Event in This Architecture?

In the context of this architectural transformation, an ‘event’ is a specific, immutable, and significant piece of information that documents a state change within a business domain. It is a record of something that has happened. For example, CustomerAddressUpdated, TradeExecuted, or InventoryLevelChanged are all valid events. Each event contains the essential data related to that state change.

The TradeExecuted event would contain the ticker symbol, price, quantity, timestamp, and counterparty information. The critical characteristic is its immutability. Once an event has been published, it cannot be retracted or altered. It is a permanent fact in the historical record of the system.

This property is what provides the deep reliability and auditability of an event-driven system. It is the atomic unit of information that drives all subsequent processes and decisions within the decoupled architecture.

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The Core Principles of Decoupling

Decoupling is the central operational advantage gained through this migration. It manifests in several dimensions.

  1. Temporal Decoupling ▴ Services do not need to be running at the same time to communicate. A service can publish an event, and the consuming services can process it whenever they are available. The event broker, the central messaging backbone, persists the event until it has been consumed. This eliminates the brittleness of synchronous, point-to-point communication where the unavailability of one service causes a failure in another.
  2. Structural Decoupling ▴ Services have no direct knowledge of each other. A producer of an event does not know which consumers will process it, how many there are, or what they do. This allows for extreme flexibility. New services can be added to listen to existing event streams without requiring any changes to the original producer services. This accelerates the development of new features and capabilities.
  3. Data Decoupling ▴ Each microservice is responsible for its own data. This ‘database per service’ pattern is a cornerstone of microservice architecture. While it introduces challenges in maintaining data consistency across services, it eliminates the single point of failure and contention of a monolithic database. It allows each service to use the type of database best suited to its specific needs.


Strategy

A successful migration from a monolithic to an event-driven architecture is a multi-year strategic initiative. It is a controlled, incremental process of systemic replacement. A “big bang” rewrite, where the entire monolith is replaced in one go, is fraught with unacceptable risk. The business cannot be put on hold while a new system is built from scratch.

The most effective strategy is one that allows the old and new systems to coexist, with functionality gradually and safely moved from the monolith to the new event-driven microservices. This approach is known as the Strangler Fig Pattern.

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The Strangler Fig Pattern a Gradual Migration

The Strangler Fig Pattern, named for a type of vine that grows around a host tree and eventually replaces it, provides a robust framework for this migration. The core idea is to build the new, event-driven system around the edges of the existing monolith, gradually intercepting and rerouting calls until the monolith’s functionality has been entirely replaced and it can be safely decommissioned. This process is typically broken down into three phases ▴ Transform, Coexist, and Eliminate.

  1. Transform ▴ This phase involves identifying a specific, bounded piece of functionality within the monolith to be migrated. This functionality is then rebuilt as a new, independent microservice. This new service is designed from the ground up to be event-driven, communicating asynchronously and maintaining its own data store.
  2. Coexist ▴ This is the longest and most critical phase. A proxy layer, often called a “Strangler Façade,” is placed in front of the monolith. This façade intercepts incoming requests for the functionality that has been rebuilt. It then routes these requests to the new microservice instead of the monolith. All other requests continue to pass through to the monolith. During this phase, the new microservice and the monolith operate in parallel, both serving production traffic. This allows for extensive testing and validation of the new service in a live environment.
  3. Eliminate ▴ Once the new microservice has been proven to be stable, reliable, and functionally complete, the corresponding code can be removed from the monolithic application. This process is repeated, module by module, until the entire monolith has been “strangled” and all its functionality has been migrated to the new event-driven architecture. The monolith can then be safely retired.
The Strangler Fig pattern mitigates risk by allowing for an incremental and reversible migration process, where new and old systems operate in parallel.
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Identifying the Seams Using Domain-Driven Design

How does an organization decide which piece of the monolith to “strangle” first? The answer lies in understanding the deep structure of the business domain itself. This is where the principles of Domain-Driven Design (DDD) become invaluable. DDD is an approach to software development that focuses on modeling the software to match the real-world business domain it serves.

A key concept in DDD is the “bounded context,” which is a logical boundary within a business domain. For example, in an e-commerce system, “Order Management,” “Inventory Control,” and “Customer Relationship Management” could all be separate bounded contexts. These bounded contexts provide the natural “seams” along which the monolith can be broken apart.

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Event Storming a Collaborative Discovery Process

A powerful technique for identifying these bounded contexts is a collaborative workshop called Event Storming. This process brings together domain experts, software developers, architects, and business stakeholders in a single room (physical or virtual). The group collaboratively maps out the entire business process as a series of “domain events.” These are the same business-significant events that will form the backbone of the new event-driven architecture. The process is highly visual and interactive, typically using a large wall and different colored sticky notes to represent different elements of the system.

  • Domain Events ▴ These represent something that has happened in the past. They are the primary focus of the workshop. (e.g. “Order Placed,” “Payment Received”).
  • Commands ▴ These represent a user’s intent to do something that will trigger a domain event (e.g. “Submit Order”).
  • Aggregates ▴ These are clusters of domain objects that can be treated as a single unit. An aggregate is the consistency boundary for transactions. The sticky notes representing related events and commands are often grouped together, and these groupings begin to reveal the aggregates and bounded contexts of the system.

The output of an Event Storming workshop is a shared, visual model of the business domain. This model provides a clear roadmap for the migration, highlighting the logical components of the monolith and suggesting the order in which they should be extracted into new microservices. It ensures that the new architecture is aligned with the actual needs and processes of the business.

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Managing Data Consistency in a Distributed World

One of the most significant challenges in migrating from a monolith to a distributed, event-driven architecture is managing data consistency. In a monolithic system, data consistency is typically handled by a single, large relational database using ACID (Atomicity, Consistency, Isolation, Durability) transactions. When an operation requires updating multiple tables, a single database transaction can ensure that all the updates succeed or all of them fail, leaving the database in a consistent state. In a microservices architecture that follows the “database per service” pattern, this is no longer possible.

A single business operation might now require updates to data in multiple databases, owned by different microservices. A new set of patterns is required to manage these distributed transactions.

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The Saga Pattern

The Saga pattern is a common approach for managing data consistency across microservices in the absence of traditional, two-phase commit distributed transactions. A saga is a sequence of local transactions. Each local transaction updates the database in a single microservice. After completing its local transaction, the microservice publishes an event.

This event then triggers the next local transaction in the saga. If any local transaction in the saga fails, the saga must execute a series of compensating transactions to undo the changes made by the preceding local transactions. This ensures that the system as a whole returns to a consistent state. There are two main ways to coordinate a saga:

Saga Coordination Patterns Comparison
Pattern Description Advantages Disadvantages
Choreography In a choreography-based saga, there is no central coordinator. Each microservice subscribes to events from other microservices and knows what to do next. It is a decentralized approach where the services collaboratively manage the workflow. Simpler to implement for sagas involving only a few steps. No single point of failure in the coordination logic. Services are highly decoupled. Can become complex to understand and debug as the number of services in the saga grows. The overall workflow is not explicitly defined in one place. Risk of cyclic dependencies between services.
Orchestration In an orchestration-based saga, a central orchestrator service is responsible for managing the entire workflow. The orchestrator tells each microservice what to do and when. It sends commands to the services to execute their local transactions and listens for the reply events. The workflow is explicitly defined and managed in a single place, making it easier to understand and modify. Easier to implement complex sagas with many steps and conditional logic. Less coupling between the participant services. The orchestrator can become a single point of failure. The orchestrator can also become a “smart” service that contains too much business logic, which is an anti-pattern.
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Eventual Consistency

Both saga patterns lead to a state known as “eventual consistency.” This is a consistency model used in distributed systems that prioritizes high availability. It acknowledges that there will be brief periods of time when the data across different microservices is inconsistent. For example, in an e-commerce order saga, the Order service might have created an order, but the Payment service has not yet processed the payment. During this time, the system is in a temporarily inconsistent state.

However, the saga pattern ensures that the system will eventually reach a consistent state, either by successfully completing all local transactions or by rolling back the completed transactions with compensating actions. For many business processes, this temporary inconsistency is acceptable. The key is to design the system and the user experience to handle it gracefully.


Execution

The execution of a migration to an event-driven architecture is a systematic process of engineering, requiring meticulous planning, disciplined execution, and continuous monitoring. This is where the strategic framework translates into a tangible, operational playbook. The process can be broken down into distinct phases, each with its own set of objectives, tasks, and deliverables. The goal is to de-risk the migration by making it incremental, observable, and reversible at every stage.

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Phase 1 Foundation and Preparation

Before any code is migrated, a solid foundation for the new event-driven architecture must be established. This phase is about preparing the organization, the teams, and the technology for the shift.

  1. Establish The Event Streaming Platform ▴ The heart of the new architecture is the event broker or streaming platform. This is the central nervous system that will enable asynchronous communication between services. The choice of this platform is a critical architectural decision. Apache Kafka is a common choice for high-throughput, persistent event streaming. Other options include managed cloud services like Amazon Kinesis, Google Cloud Pub/Sub, or other message brokers like RabbitMQ. The selection should be based on the specific requirements for throughput, latency, persistence, and operational overhead.
  2. Conduct Event Storming Workshops ▴ As outlined in the strategy, the first practical step is to gain a deep, shared understanding of the business domain. A series of Event Storming workshops should be conducted, involving all relevant stakeholders. The output of these workshops will be a comprehensive map of the domain events, commands, and aggregates, which will serve as the blueprint for the new microservices.
  3. Identify The First Bounded Context To Strangle ▴ Using the output from the Event Storming workshops, the team must select the first piece of functionality to migrate. An ideal first candidate is a module that is relatively isolated, has few dependencies on other parts of the monolith, and provides clear business value. This allows the team to learn the migration process with a lower-risk component before tackling more complex parts of the system.
  4. Define The Event Schema And Governance ▴ A clear, consistent, and well-documented schema for events is essential for long-term maintainability. A schema registry should be used to enforce compatibility and manage the evolution of event schemas over time. This prevents breaking changes and ensures that all services have a shared understanding of the data flowing through the system.
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Phase 2 Incremental Strangulation and Coexistence

This phase is the core of the migration process, where functionality is incrementally moved from the monolith to the new architecture. It is an iterative cycle that will be repeated for each bounded context.

  • Build The First Microservice ▴ The team builds the new microservice that corresponds to the bounded context identified in Phase 1. This service is built using event-driven principles from the ground up. It will have its own database and will communicate with the rest of the system by producing and consuming events from the event streaming platform.
  • Implement The Strangler Façade ▴ A proxy layer is deployed in front of the monolith. This façade will be responsible for routing traffic. Initially, it will pass all requests through to the monolith.
  • Implement Data Synchronization ▴ This is one of the most technically challenging aspects. While the old and new systems coexist, their data stores must be kept in sync. A common pattern for this is Change Data Capture (CDC). CDC is a technique for monitoring the changes happening in the monolith’s database and publishing those changes as events to the event streaming platform. The new microservice can then consume these events to keep its own database up to date.
  • Route Read Traffic ▴ The Strangler Façade is configured to intercept read requests for the migrated functionality and route them to the new microservice. The monolith continues to handle all write requests. This allows the team to validate the read paths of the new service with production traffic without risking data corruption.
  • Route Write Traffic ▴ Once the read paths are validated and stable, the façade is updated to route write requests to the new microservice as well. The microservice now becomes the system of record for this piece of functionality. The CDC mechanism may now need to be reversed, capturing changes from the new microservice’s database and writing them back to the monolith’s database to support any remaining parts of the monolith that still depend on that data.
The coexistence phase, managed by the Strangler Façade and enabled by data synchronization techniques like CDC, is the engine of the incremental migration.
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Phase 3 Decommissioning and Optimization

This final phase completes the migration for a given bounded context and sets the stage for the next iteration.

  1. Retire The Legacy Code ▴ After a period of stable operation where the new microservice is handling all production traffic for its domain, the corresponding code, data tables, and API endpoints can be removed from the monolith. This is a critical step that reduces the complexity and maintenance overhead of the legacy system.
  2. Monitor And Optimize ▴ The new distributed system requires a different approach to monitoring. Distributed tracing tools like Jaeger or Zipkin are essential for understanding the flow of requests across multiple services. Performance metrics for the new service and the event streaming platform should be closely monitored. Because the services are decoupled, they can be scaled independently. If one microservice becomes a bottleneck, it can be scaled out without affecting the rest of the system.
  3. Repeat The Cycle ▴ The team then returns to Phase 1, selecting the next bounded context to migrate and repeating the entire process.
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Quantitative Modeling a Migration Scenario

To make this process concrete, consider the migration of an “Inventory Management” module from a monolithic e-commerce application. The following table models the key steps and metrics for this specific migration.

Inventory Management Module Migration Plan
Stage Key Actions Data Synchronization Method Key Performance Indicators (KPIs) Success Criteria
1. Preparation Event Storm inventory domain. Design InventoryItem and StockLevel aggregates. Set up Kafka topics for inventory events. N/A Clarity of domain model. Team consensus on bounded context. Signed-off domain model and event schemas.
2. Build Service Develop InventoryService microservice with its own PostgreSQL database. Implement logic for StockAdjusted, ItemReserved, ReservationReleased events. N/A Unit and integration test coverage (>90%). Code quality metrics. Service passes all tests and is deployable.
3. Sync Data (CDC) Implement Debezium connector to capture changes from the monolith’s inventory table and publish them to a Kafka topic. InventoryService consumes these events to populate its database. Unidirectional (Monolith to Microservice) CDC pipeline latency (<1 second). Data consistency validation reports. Data in InventoryService DB is consistently within 1 second of monolith DB.
4. Route Reads Configure API Gateway (Strangler Façade) to route GET /api/inventory/{itemId} requests to InventoryService. Unidirectional (Monolith to Microservice) InventoryService read latency (p99 < 50ms). Error rate (<0.01%). No increase in user-facing errors or latency for inventory lookups.
5. Route Writes Configure API Gateway to route POST /api/inventory/adjust requests to InventoryService. InventoryService now owns the logic and publishes StockAdjusted events. Bidirectional (if needed by other monolith parts) End-to-end transaction time for stock adjustment. Saga success rate (>99.99%). Stock levels remain consistent across the system during business operations.
6. Decommission Remove inventory table and related code from the monolith. Shut down the Debezium CDC pipeline. None Reduction in monolith codebase size. Reduction in monolith resource consumption. Monolith continues to function correctly without the legacy inventory code.

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References

  • Fowler, Martin. “Strangler Fig Application.” martinfowler.com, 29 June 2004.
  • Brandolini, Alberto. Introducing EventStorming ▴ An Act of Deliberate Collective Learning. Leanpub, 2021.
  • Richards, Mark, and Neal Ford. Fundamentals of Software Architecture ▴ An Engineering Approach. O’Reilly Media, 2020.
  • Newman, Sam. Building Microservices ▴ Designing Fine-Grained Systems. O’Reilly Media, 2015.
  • Vernon, Vaughn. Implementing Domain-Driven Design. Addison-Wesley Professional, 2013.
  • Kleppmann, Martin. Designing Data-Intensive Applications ▴ The Big Ideas Behind Reliable, Scalable, and Maintainable Systems. O’Reilly Media, 2017.
  • Nadareishvili, Irakli, et al. Microservice Architecture ▴ Aligning Principles, Practices, and Culture. O’Reilly Media, 2016.
  • “Strangler Fig Pattern.” AWS Prescriptive Guidance, Amazon Web Services, Accessed July 2024.
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Reflection

The completion of a migration from a monolithic to an event-driven architecture is the beginning of a new operational capability. The resulting system is a platform for continuous evolution. With a decoupled architecture and a central event stream that represents the factual history of the business, the organization is positioned to develop new products, services, and insights at a velocity that was previously unattainable. The question then becomes, what will you build with this new capability?

How will you leverage a real-time, composable, and resilient operational core to create a durable strategic advantage in your market? The architecture itself is the foundation. The value is in what you build upon it.

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What New Business Capabilities Are Unlocked?

Consider the possibilities that a persistent, real-time event stream opens up. Customer behavior can be analyzed in real-time to offer personalized experiences. Supply chain logistics can be optimized by reacting instantly to supplier events. Risk and compliance monitoring can become proactive rather than reactive.

The event-driven system is a substrate for data-driven innovation. Each new service that plugs into the event stream adds to the collective intelligence of the system, creating a virtuous cycle of improvement and adaptation. The migration is an investment in the organization’s future agility.

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Glossary

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Event-Driven Architecture

Meaning ▴ Event-Driven Architecture represents a software design paradigm where system components communicate by emitting and reacting to discrete events, which are notifications of state changes or significant occurrences.
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Entire Monolith

A single inaccurate trade report jeopardizes the financial system by injecting false data that cascades through automated, interconnected settlement and risk networks.
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Event Streaming Platform

An Event of Default is a fault-based protocol for counterparty failure; a Termination Event is a no-fault protocol for systemic change.
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Central Nervous System

Central clearing transforms diffuse counterparty risk into concentrated systemic risks of liquidity drains and single-point-of-failure events.
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Shared Understanding

The shared responsibility model recalibrates a firm's compliance burden toward automated, software-defined controls.
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Event Stream

An Event of Default is a fault-based protocol for counterparty failure; a Termination Event is a no-fault protocol for systemic change.
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Business Domain

The ISDA CDM provides a standard digital blueprint of derivatives, enabling the direct, unambiguous translation of legal agreements into automated smart contracts.
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Event-Driven System

An Event of Default is a fault-based protocol for counterparty failure; a Termination Event is a no-fault protocol for systemic change.
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Decoupling

Meaning ▴ Decoupling defines the architectural separation of distinct functionalities or interdependent components within a system, allowing for their independent operation, management, and scaling.
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Data Consistency

Meaning ▴ Data Consistency defines the critical attribute of data integrity within a system, ensuring that all instances of data remain accurate, valid, and synchronized across all operations and components.
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Single Point

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Strangler Fig Pattern

Meaning ▴ The Strangler Fig Pattern defines a systematic approach for incrementally refactoring a monolithic software system by gradually replacing specific functionalities with new, independent services.
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Domain-Driven Design

Meaning ▴ Domain-Driven Design is a software development methodology that places the primary focus on the core business domain, establishing a direct alignment between the complex logic of a specific industry and the architectural constructs of the software system.
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These Bounded Contexts

Realistic simulations provide a systemic laboratory to forecast the emergent, second-order effects of new financial regulations.
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Bounded Context

Meaning ▴ A Bounded Context defines an explicit boundary within a complex system, serving as the conceptual space where a specific domain model is coherent and consistent.
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Event Storming

Meaning ▴ Event Storming is a collaborative, workshop-based modeling technique focused on rapidly exploring complex business domains by identifying and sequencing all significant domain events that occur within a system.
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Saga Pattern

Meaning ▴ The Saga Pattern represents a sequence of local transactions, each updating data within a single service, with a coordinating mechanism to ensure overall data consistency across a distributed system.
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Eventual Consistency

Meaning ▴ Eventual Consistency describes a consistency model in distributed systems where, if no new updates are made to a given data item, all accesses to that item will eventually return the last updated value.
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Distributed Systems

Meaning ▴ Distributed Systems represent a computational architecture where independent components, often residing on distinct network hosts, coordinate their actions to achieve a common objective, appearing as a single, coherent system to the user.
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Streaming Platform

An RFQ-only platform provides a strategic edge by enabling discreet, large-scale risk transfer with minimal market impact.
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Event Streaming

An Event of Default is a fault-based protocol for counterparty failure; a Termination Event is a no-fault protocol for systemic change.
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Event Storming Workshops

An Event of Default is a fault-based protocol for counterparty failure; a Termination Event is a no-fault protocol for systemic change.
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Migration Process

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Data Synchronization

Meaning ▴ Data Synchronization represents the continuous process of ensuring consistency across multiple distributed datasets, maintaining their coherence and integrity in real-time or near real-time.
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Change Data Capture

Meaning ▴ Change Data Capture (CDC) is a software pattern designed to identify and track changes made to data in a source system, typically a database, and then propagate those changes to a target system in near real-time.