On-Chain Order Routing

Definition ∞ On-chain order routing refers to the process of submitting and matching buy and sell orders directly on a blockchain network. Unlike off-chain systems, all order book data and execution logic are recorded and processed transparently on the distributed ledger. This method offers enhanced auditability and censorship resistance for trades. It ensures immutability of transaction records.
Context ∞ Crypto news often covers on-chain order routing in discussions about decentralized exchanges and the pursuit of true decentralization in trading. Reports may highlight the benefits of transparency and reduced counterparty risk, alongside challenges such as higher transaction fees and slower execution speeds compared to centralized exchanges. The ongoing development aims to optimize efficiency while preserving core blockchain principles.