An On-Chain Order Book is a ledger that contains a record of all open buy and sell orders for a specific cryptocurrency. It is maintained on the blockchain, which is a decentralized and transparent distributed ledger technology.
When a user wants to buy or sell a cryptocurrency, they can place an order on the On-Chain Order Book specifying the price and quantity they are willing to trade. These orders are then matched with other orders on the book to facilitate trades between users.
The On-Chain Order Book provides real-time information on the current market demand for a particular cryptocurrency, allowing users to make informed decisions about when to buy or sell. Additionally, because it is on the blockchain, the order book is secure and immutable, minimizing the risk of fraud or manipulation.
Overall, the On-Chain Order Book plays a crucial role in facilitating trading activity and price discovery in the cryptocurrency market.
