The Ordiswap protocol, whose native token is ORDS, carries out decentralized trading on the Bitcoin blockchain in an automated way. Thus, you can search for Bitcoin quotes on several exchanges, in an automated way, instead of manually.
Ordiswap is the first automated market maker (AMM) designed to work on the Bitcoin chain. The idea is to exchange several different tokens on layer 1 of Bitcoin, bringing more flexibility to negotiations, especially for those who invest in several cryptocurrencies.
AMM
An AMM works as an automatic search engine for asset quotes, both in the world of traditional finance and cryptocurrencies. Ordiswap analyzes the different values between assets on the blockchain and helps in forming liquidity.
This is different from what happens with centralized exchanges, which determine the value of assets based on demand and supply. In Ordiswap, there are liquidity pools monitored by smart contracts, in which assets used in transactions are deposited.
You can synchronize your digital wallet with Ordiswap. For now, the platform only supports Unisat Wallet. You can connect it by sending trade requests to the server.
Off-chain
The operation of the Ordiswap protocol has another particularity: being off-chain. The concept of working off the main chain is innovative because it reduces the burden of transactions that take place on Bitcoin's main layer and increases efficiency.
This means that the ORDS token protocol starts working already disconnected from the blockchain. The user's identity, the amount of assets and the pair of trades made are recorded. Balance updates are also done outside the main chain.
Only confirmation of the transaction is done on-chain, when cryptocurrency is withdrawn or the user interacts with other on-chain protocols. This advantage reduces the number of records and increases transaction speed.
BRC-20
Another feature of the ORDS token system is the interoperability between Ethereum and Bitcoin. You can transfer digital assets between these two chains simply and quickly, without leaving the platforms and carrying out separate operations.
This means that Ethereum's ERC-20 tokens can be exchanged with standards equivalent to Bitcoin's BRC-20 tokens, and vice versa. This process is called wrapping. It works as if a digital asset was packaged to be recognized on the other chain.
This exchange between BRC-20 and ERC-20 tokens involves the payment of fees, which are reallocated within the Ordiswap system itself to encourage the use of the platform.
ORDS Token
The ORDS token can be used on the Bitcoin and Ethereum blockchain. It is governance, used in voting processes for improvements to the platform. Cross-chain transactions generate fees distributed to those who have it in their wallet.
Of the 1 billion ORDS tokens in circulation, 13% went to the community, 10% to decentralized exchange liquidity, 10% to developers, 10% to liquidity, 15% to rewards, and 10% to private sales.
Learn more about cryptocurrencies
ORDS and Ordiswap are innovations in the crypto world. To stay up to date with the latest news, continue accessing the NovaDAX blog. Here, you can follow news about digital assets, blockchains and investment tips. Check out!