💎 Decentralized OTCs are gone?

OTC basically means trading commodities, currencies, and other assets over-the-counter, off-exchange. In plain words, OTC is in the way of trading between two entities or parties, without any exchange involved and controlling. OTC was the most common way of trading assets that resembles the current way of trading peer-to-peer. However, OTC as a method has a lot of downsides in case of liquidity inefficiency and asset price determination.

Well, basically, this is how we can imagine the decentralized exchanges before their massive expansion.

Many investors, who are aiming to create a DeFi project are often trying to illustrate the example of the OTC way of trading. Sure, it had a lot of benefits, that’s why it was so common to use.

Blockchain solutions were a diamond key to recreate the trading of assets in the way how it was. Decentralized exchanges (DEX) are highly prominent because of that.

How did they solve it?

Well, a lot of DEXs are utilizing Layer 2 protocols in order to manage the low-liquidity digital asset spread, while keeping high-liquidity digital assets off-chain.

Sure, these blockchain solutions are unimaginable without decentralization. Even though they enlarge the cost of developing and the DEX functioning.

The majority of DEXs are facing the difficulty of allowing users to trade many different digital assets that are existing in the different blockchains. The lack of blockchain bridges or cross-chain solutions needs to be resolved.

That is why we are keen on Blockchain Bridges development, multi-chain, and cross-solutions!

Check our website https://rocknblock.io to get to know more!

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Article author: Mariia Zavtur

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