Benefits of Gridex’s On-Chain Orderbooks: An Off-Chain Comparison

Gridex is the first genuinely on-chain Ethereum DEX, which reduces risks compared to hybrid systems with off-chain order books.

23:19 09 January 2023

Gridex is the first genuinely on-chain Ethereum DEX, which reduces risks compared to hybrid systems with off-chain order books

Blockchain and decentralized finance (DeFi) have rocked the tech and finance worlds over the past few years, mainly due to the advantages of decentralization, security, and transparency over traditional financial systems.

However, many self-proclaimed decentralized exchanges (DEXs) have recently avoided putting all of their decentralized applications (dapps) on-chain because of the difficulty in doing so, and in doing so, they have compromised the core tenets of what it means to be truly decentralized. 

This is where Gridex comes in – the world’s on-chain Ethereum (ETH) DEX that provides the accessibility of DeFi without compromising on the core tenets of blockchain technology. 

The Case for Censorship Resistance

Censorship resistance is vital for DEXs because it ensures that a single entity or organization cannot shut down or manipulate the platform. Gridex is the first on-chain ETH DEX built with this resistance in mind. 

By hosting all of the order books on-chain within the Gridex DEX, Gridex avoids the pitfalls of many other semi-centralized DEXs, mainly that trading is done on-chain, while order books are hosted off-chain in services that are potentially able to be manipulated. This on-chain/off-chain pairing is critical to avoid for users in countries where traditional financial institutions may be subject to censorship or interference from governments or other authorities.

It’s no doubt that this is where Gridex, the first on-chain ETH DEX, shines. 

Transparency: A Necessity

In a blockchain network, all transactions are recorded and stored on a distributed ledger that is visible to all participants on the network. This means that all parties can see the history of a transaction, including the parties involved, the amount of the transaction, and the time it occurred.

This essential feature allows users to verify their transactions and in the case of an on-chain ETH DEX, verify that their assets have been placed in an order book correctly and those trades are executing appropriately. When a DEX decides to provide on-chain trading while hosting their order books off-chain, that DEX loses the transparency of the blockchain network within their order books. 

Gridex has put the principle of transparency at its core by developing the first on-chain ETH DEX. The transparency achieved by placing trading and order books on-chain can help increase users' trust. All parties can see that the dapp functions as it should and that transactions and trades are correctly recorded and executed. 

Key Benefits of Gridex: Quick Summary 

On-chain order books matter because of two of the main principles of blockchain technology: transparency and censorship resistance. While many other DEXs have created a hybrid system, only executing trades on-chain while hosting their order books off-chain, Gridex has developed the first genuinely on-chain ETH DEX that mitigates these risks. 

Gridex is a DEX built on the Ethereum blockchain that aims to provide the benefits of DeFi without compromising on the principles of blockchain technology, such as transparency, censorship resistance, and accessibility.

This exchange is unique in that it is the first on-chain ETH DEX, meaning that all of its order books are hosted on the blockchain rather than being hosted off-chain in a potentially manipulatable service. This ensures censorship resistance, as a single entity or organization cannot shut down or manipulate the platform.

Another major advantage includes Gridex focusing on transparency. All transactions and trades are recorded and stored on a distributed ledger that is visible to all participants on the network, helping to increase trust and accountability among users.