When you buy cryptocurrencies, you can do so on a centralized (CEX) or decentralized (DEX) crypto exchange. Both exchanges have their own pros and cons. But what if you want the best of both exchanges? That will be very difficult, you think. However, there is a crypto project that deals with this. They want to combine the best of both worlds in a new product. This way you benefit from all the advantages that both worlds offer.
Of course we are talking about Orion Protocol (ORN). It is a fairly new project that is gaining more popularity in the near future. And that’s not surprising, because the project is quite unique. In this article we explain what Orion Protocol is and how it actually works. We also tell you which products this platform has brought to the market. We will also tell you where you could buy the ORN token itself. Watch a quick 13 minute video below so you know what Orion Protocol is all about.
- 1 What is Orion Protocol (ORN)?
- 2 How does Orion Protocol work?
- 3 Command Matching Engine
- 4 The Future of Orion Protocol
- 5 Orion Terminal
- 6 Other products from Orion Protocol
- 7 ORN token
- 8 Where can I buy ORN tokens?
- 9 Where can I store my ORN tokens?
- 10 The course of Orion Protocol (ORN)
What is Orion Protocol (ORN)?
Orion Protocol is the product of Alexey Koloskov, CEO of the protocol and former chief architect and creator of the decentralized exchange Waves , which began development in 2018. In the second quarter of 2020, the Orion Protocol team released the public test network, followed by the core public network in December 2020.
Orion Protocol is a new type of DeFi platform that combines the best features of exchanges, brokers and instant trading applications. The protocol aims to bridge the gap between the centralized and decentralized world of crypto.
The platform says it does this by using a liquidity aggregator connected to all major crypto exchanges (centralized and decentralized) and swap pools.
With these features, the platform hopes to enable traders to get the best price for their trades through a single portal. It offers powerful wallet tools, security, convenience and flexibility to provide a place suitable for experienced traders, institutional traders and newbies.
How does Orion Protocol work?
At the heart of the Orion protocol is the modular architecture of distributed and decentralized services that fulfill all their regulations on the Ethereum platform. Most of Orion’s core components are open source to the Orion Foundation.
First, the Orion protocol standardizes an API for the various elements of its liquidity aggregator, providing a common language to connect to any exchange. Second, it creates a marketplace for dApps based on its protocol, which can include arbitrage applications, algorithmic trading robots, mutual funds, and payment integration systems. The network of components that make up Orion’s dApps marketplace can be developed and enhanced by third parties, ensuring higher quality and availability of functionality.
Command Matching Engine
The main goal of the order matching engine is to ensure that trades are executed at the cheapest price by accessing the lowest requests and highest offers on all exchanges available. When an order is received, the engine first tries to execute it in the internal blockchain . If the internal blockchain does not offer the best prices, the data from the price search module intelligently searches for the exchange(s) that offer the best price for the requested amount.
When the order is placed, the Orion protocol uses specific executors for CEX and DEX to execute the orders. The CEX executors work with API keys, while the DEX executors sign the orders directly from the multi-currency wallet with a private key.
The centralized exchange executor is simply an adapter for a particular exchange that can send limit buy or sell orders using the provided API key and monitor it for execution.
The DEX module is used to connect to a DEX in the same way the order matching engine connects to a centralized exchange. But instead of using an API key, the DEX executor uses a private key provided by a multi-currency wallet.
This is simply a wallet that supports multiple cryptocurrencies with Orion’s proprietary ORN token (more on this later in this article). It is used to sign DEX orders for DEX executors and can be integrated into a wallet module to provide transaction history and calculate the cost and profit of transactions.
This wallet management module provides a range of intelligent wallet management features including trade history, current balance, profit/loss and comparison of different trading strategies.
Price discovery module
This is like a plugin that provides a live price feed of real time trades. A new plugin can be easily written by creating a simple interface and presenting exchange information. Providing pricing data is charged by customers in ORN tokens and developers are paid a fee for providing this data.
A wide range of applications, such as trading robots and payment gateways, can be created on the protocol. The first dApp that runs on the Orion protocol is Orion itself. The ORN token is widely used in dApps as a utility token , used to pay for all services, including commission fees, and in its lending model.
The Future of Orion Protocol
It may be clear to you that serious projects differ from less serious projects, partly because of the future plans they have. That is why it is good to look at what the Orion Protocol team wants to achieve in the future in order to become even better. This is what Alexey Koloskov himself says about the ambitions of Orion Protocol:
“While it’s clear that the future must be decentralized (after all, that’s what crypto is fundamentally built on), it’s impossible to ignore the prominence of centralized products. Orion Protocol was born out of the need for an intermediate solution that bridges the gap between the centralized and decentralized worlds of crypto. Our ambitions for Orion have always been to go beyond what was currently possible. In what we’ve built so far and in our roadmap, we’ve done that, built a protocol that will change the future of DeFi for the better.”
You can read how they envision this on the Orion Protocol website. This is because it describes in a practical and clear way what the next steps are that the project will take. That is why we recommend that you read the Orion Protocol website if you would like to know more about this.
The flagship of Orion Protocol is Orion Terminal, which aims to be the first gateway to the entire crypto market by bringing together every CEX, DEX and swap pool in a single decentralized platform. It seamlessly aggregates unlimited liquidity from all major exchanges to provide rich trading tools in an easy-to-use platform.
As Crypto Economy reported, Phase 1 of the Orion terminal went live on the main network on December 15, 2020. Phase 1 supports trading, deposit and withdrawal services. More features including trading pairs will be added continuously in the near future including ORN strike. Loans, margin trading, leveraged ETFs, derivatives, trading contracts, NFTs and staking of any type of digital assets will also be added in the future.
The data aggregated by Orion Terminal is also forwarded to Chainlink ‘s price oracle . This ensures that Orion Protocol will actually do its job. In the past, it mainly stayed with a concept and developing it, while they are now working on its realization.
Other products from Orion Protocol
- App Store . This is the dApp marketplace we’ve talked about before. User can purchase Orion based applications and trading signals from independent developers in this app store.
- Enterprise trading widget . This allows partner companies and non-blockchain based companies to integrate crypto trades directly on their apps and websites.
- Liquidity Amplification Plugin . This plugin enables CEXs and DEXs to instantly increase liquidity on their exchange with a specially designed matching engine that connects to dozens of different exchanges in real time. Exchanges can place this plugin on their platforms to contribute to Orion’s aggregate liquidity.
- DEX Blockchain Kit . This provides the easiest way for users to start their own decentralized exchange with direct access to Orion liquidity.
ORN token is an ERC-20 token used to perform all major activities on the platform. While other currencies will also be accepted, payment with ORN guarantees a discount on costs and other features.
Orion has sought to ensure the deep usability of its proprietary ORN token over the protocol, integrating it into all core transactions in the form of an internal currency or utility token. According to the website, the ORN token offers sixteen revenue streams and is the first token to be sold through the Dynamic Coin Offering (DYCO).
ORN is used for Orion Terminal, staking in decentralized brokerage, brokerless staking, and for payment in the App Store. The ORN token holder will have access to premium trading features such as limit orders, stop market and stop limit orders, as well as control over stop loss and take profit parameters.
Where can I buy ORN tokens?
Your best bet is to go to a crypto exchange that offers ORN on their website. Fortunately, there are many different exchanges that offer this coin, as it is an increasingly popular cryptocurrency. That also means that liquidity is high enough on most platforms to buy and sell these coins at the best price.
We recommend that you use Binance or Gate.io because these exchanges are safe and can offer these coins for the best price. This is because there is high liquidity on these platforms. In addition, there has not been a major hack in the past, so you can assume that it is safe to buy your coins here.
Of course, there are plenty of other exchanges that offer ORN, such as decentralized exchanges like Uniswap and Sushiswap . However, the chance that the purchase of these coins goes wrong here is many times greater. This is because you have to go through more steps to get the coins in your possession. So it is not recommended for beginners to use these types of exchanges.
Where can I store my ORN tokens?
Since ORN are basically ERC-20 tokens, you can store these tokens just about anywhere. After all, this is the best-known token protocol. You can easily and quickly store your tokens in the hot wallet of your crypto exchange. However, this is not always the best and safest choice. It is much more sensible to store your ORN tokens in a cold wallet, also known as a hardware wallet .
A hardware wallet is a USB stick where you can store crypto coins. Because you can disconnect a hardware wallet from the internet, it is much more secure than a hot wallet . When the wallet is not connected to a device, no internet connection is possible with the wallet. This makes it impossible for hackers to gain access to the hardware wallet. Of course you should then keep the hardware wallet at home. When you lose this, you also lose all tokens and coins that you have stored on it.
The course of Orion Protocol (ORN)
For crypto traders, Orion Protocol seems to be driven by a very ambitious project. A project that could eventually take a real place under the sun in the ultra-competitive world of cryptos.
The price of ORN has been fairly stagnant lately. At the beginning of 2021, the price had risen sharply, after which it fell again. At the time of writing, in June 2021, the price of ORN is $6.35.
Want to check ORN’s current price? Then you can use a website where this rate is displayed.
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com