On-chain orderbook & matching engine
The topic of centralized exchanges is a point of contention within the decentralized community. Despite this, their orderbook model presents clear benefits. The ideal solution would involve constructing a decentralized exchange (DEX) with a fully on-chain order book and matching engine, where all trades and transactions occur on-chain.
This setup would promote exceptional transparency and security. Nevertheless, the challenge of scalability poses significant obstacles. Fortunately, Arcology offers potential solutions for addressing these issues.
What Arcology offers
Arcology has the capability to handle tens of thousands of transactions per second, which positions it as a desirable platform for order book DEX.
Typically, Ethereum DEX keeps their orderbook and matching engine off-chain due to performance limitations. With Arcology, the DEX can fully run the orderbook and matching engine on-chain.
Running the orderbook and matching engine on-chain can result in a high volume of transactions. However, Arcology's scalability and processing power can alleviate these issues.