Trusted Execution Environment (TEE) is a technology invented by Intel that allows modern CPUs to have an isolated section independent of the Operating System, BIOS and other core components of a computer.
Its main advantage is that the computation executed in TEE is verified by the blockchain and any tampering in the logic will result in the blockchain rejecting the TEE.
TEE handles the balance state management of users in the Orderbook. It prevents theft of funds, verifies the matched trades provided by the Orderbook Engine, settles trades and enables the trader to reserve and unreserve assets on the native blockchain.
