On-Chain Market

Definition ∞ An on-chain market is a decentralized exchange or trading platform where all transactions, order books, and settlement processes occur directly on a blockchain. This system ensures transparency, immutability, and censorship resistance for trading digital assets. Participants interact directly with smart contracts, removing the need for traditional intermediaries. It represents a fully transparent trading venue.
Context ∞ On-chain markets are a central element in news about decentralized finance and the evolution of digital asset trading. Discussions frequently address their advantages in terms of transparency and user control, alongside challenges related to transaction speed, gas fees, and liquidity. The development of more efficient and user-friendly on-chain market protocols continues to be a key area of innovation in the crypto space.