What is Orion Protocol (ORN)? – Complete explanation for beginners =

Orion Protocol (ORN) : good chance you haven’t heard about it since it is still a relatively small and young crypto. At the time of writing, Orion Protocol is ranked 267 in CoinMarketCap with a market cap of just $100 million. Compared to the big boys, that’s very little: Bitcoin has a market cap of over $800 billion and Ethereum has a market cap of $200 billion. Orion Protocol is therefore ‘peanuts’ compared to the larger cryptos, but a small market cap also means greater growth potential! But why would Orion Protocol (ORN) grow? You will find out in this article.

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  • View more:
  • What is Orion Protocol (ORN)?
    • Central exchanges (CEX)
    • Decentralized exchange (DEX)
    • Orion Protocol Terminal
  • How does Orion Protocol (ORN) work?
    • Delegated Proof of Broker
  • Orion Protocol products
    • Portfolio management application
    • Orion Marketplace
    • DEX kit
    • Orion Liquidity Boost Plugin
  • Orion ORN Tokenomics
  • Orion Partners
  • Orion Protocol Roadmap
  • Orion Protocol Team
  • Criticism
  • Conclusion
  • How do I buy Orion Protocol?

What is Orion Protocol (ORN)?

Orion Protocol (ORN) is the very first gateway (terminal) to the entire crypto market: in this Orion Protocol aims to merge all central exchanges (CEX), decentralized exchanges (DEX) and swap pools into one easy-to-use decentralized platform. The key to Orion’s value is its built-in liquidity aggregator , which automatically allows its users to access multiple exchanges to get the best spot price for all supported cryptos, with the best features from both central exchanges and decentralized exchanges.

So Orion Protocol stands out with a built-in liquidity aggregator. A liquidity aggregator is a technology that allows users to get prices simultaneously from multiple different liquidity providers, such as central exchanges and decentralized exchanges. To understand why this is a big deal, you need to understand the difference between central exchanges and decentralized exchanges.

Central exchanges (CEX)

Central trading platforms, or centralized exchanges, are online platforms that are used to buy and sell cryptocurrencies. Central exchanges are the most common platforms that investors use to buy and sell cryptos. Examples of central exchanges are Bitvavo, Binance, Coinbase, Kraken and Bitmex. An advantage of central exchanges compared to decentralized exchanges is that they have relatively low fees, because the orders and transactions are not stored on a blockchain.

But what makes central exchanges central? Central exchanges are central because they use a middleman or third party to help execute transactions. Both buyers and sellers trust this intermediary to handle their assets. This is similar to a wire transfer, where the customer trusts the bank to hold his or her money. So at a central exchange you do not really own crypto; the exchange keeps it for you. This is called an ‘IOU’. IOU stands for ‘I Owe You’, or ‘I owe you something’. An IOU is an informal contract and is therefore not considered a statutory legal document. This means that the indebted party has no legal obligation to actually pay the debt just because they wrote down and signed an IOU. So if a central exchange gets hacked and cryptos are stolen from their exchange, they owe you nothing and you lost your cryptos. In the crypto world it is therefore always said: “Not your keys, not your coins.”

Decentralized exchange (DEX)

Dentral exchanges are similar to central exchanges only without the involvement of a third party holding the crypto. Trading on a decentralized exchange takes place between two people, each with their own wallet and their own keys: peer-to-peer. The main difference is that the backend of a decentralized exchange runs on a blockchain with smart contracts. No one is taking over the custody of your cryptos and therefore you don’t have to trust the exchange as much as with centralized exchanges, if at all.

On chain order books

Decentralized exchanges come in various forms. First, you have the form in which everything happens on the blockchain. On the one hand, this ensures the most transparency. On the other hand, the disadvantage of this is that all nodes (participants) of the network must have a copy of the blockchain, which means that the fees and transaction times can run high.

Off-chain order books

Secondly, you also have decentralized exchanges where the order book is stored off-chain. The exchange is therefore still partially decentralized, because the users still keep their own keys, but the orders are centrally stored somewhere else. Only when the order is through and a transaction takes place, it will be put on the blockchain. This approach is better from a usability point of view than the on-chain order books exchanges. They do not face the same limitations in terms of speed and fees because they use the blockchain less often. Still, the transaction has to be handled on it, so the off-chain order book model is still inferior to centralized exchanges in terms of speed.

Automated Market Makers (AMM)

The previous two approaches to decentralized exchanges are now obsolete. Since the emergence of UniSwap, the idea with order books has been discarded. UniSwap and Loopring, among others, use the Automated Market Makers model. Decentralized exchanges that use AMM therefore work without order books. Now I can hear you thinking: how do you trade without an order book? In short, Automated Market Makers use smart contracts that hold liquidity reserves (liquidity pools) against which traders can trade. These reserves are financed by liquidity providers. Learn more about UniSwap and Automated Market Makers. A disadvantage of UniSwap and other DEXs that use AMM is that they do this on the Ethereum blockchain. Firstly, this only allows you to swap ERC-20 token. Second, you have to deal with high gas prices on the Ethereum blockchain.

 

Orion Protocol Terminal

But what does this have to do with Orion Protocol? Orion Protocol is an all-in-one DeFi platform that offers a universal trading platform to all crypto markets, with unlimited liquidity; Orion terminal. Powered by a unique liquidity aggregator, connecting to all major exchanges (both centralized and decentralized).

Orion Protocol therefore wants to distinguish itself by connecting the liquidity and benefits of central and decentralized exchanges in one platform. Orion Protocol is therefore not its own exchange and does not compete with other exchanges, but bundles the order books and liquidity pools of central and decentralized exchanges in one.

We don’t compete with exchanges: we aggregate them.

The terminal of Orion Protocol brings a number of advantages:

  • Always the best price because all exchanges are connected on one platform.
  • Lowest possible trading fee.
  • You keep your crypto in your own wallet and not the exchange as with CEXs.
  • Not just ERC-20 tokens, but multiple blockchains.
  • No more switching between different exchanges; all the crypto pairs you need.
  • No account needed with multiple exchanges

How does Orion Protocol (ORN) work?

Delegated Proof of Broker

Orion Protocol runs the Terminal using one of the newest types of consensus algorithms: Delegated Proof of Broker (DPoB). Delegated Proof of Broker is a variation on the Proof of Stake mechanism. The mechanism consists of two parts: Brokers and Non-Broker Stakers .

Brokers ensure that all exchanges on the Orion platform are connected. Brokers have installed the Orion Broker Software, have multiple accounts with exchanges and have staked at least $10,000 in ORN.

Non-Broker Stakers are basically ‘just’ stakers who stake their ORN, just like other Proof of Stake algorithms do.

The Orion Broker Software that the Brokers have installed ensures that the Brokers’ computers automatically execute transactions from the liquidity aggregator. Brokers get a share of the fees paid on every trade they execute. Non-Broker Strikers raise their ORN to ‘vote’ their choice of Broker. That choices are made based on the share of the reward that the Broker offers them. Brokers are thus encouraged to offer attractive rates to Non-Broker Stakers, so that they have a greater chance of being selected.

Currently, the testnet runs on the Ethereum blockchain, but the mainnet, which will launch in the first quarter of 2021, will run on the Elrond blockchain. Elrond uses Adaptive State Sharding and Secure Proof of Stake, making it faster and cheaper than the Ethereum network.

 

Orion Protocol products

Orion Protocol has other products besides the terminal. In fact, Orion Protocol has a total of 18 different sources of income. Orion does not only focus on the business-to-consumer market, but also on other companies within the crypto market: the business-to-business market.

Portfolio management application

Orion’s portfolio management application lets users set alarms for arbitrage opportunities, track their activity on exchanges, and automate asset management processes, among other things. And all this without ever giving up your private keys; you therefore remain in control of your crypto.

Orion Marketplace

Orion also offers an app store where users can purchase DApps created with the Orion Software Developer Kit. These can be, for example, arbitrage bots or algorithm trading bots. These DApps are paid for with ORN tokens.

DEX kit

The DEX Kit is a platform where users can create their own decentralized exchange and use the liquidity of Orion Protocol. This is more aimed at the business-to-business market.

Orion Liquidity Boost Plugin

Another business-to-business application. Orion Liquidity Boost Plugin is a plugin that other, especially smaller, exchanges can use, allowing them to use the liquidity of all exchanges.

Orion ORN Tokenomics

Orion Protocol’s token is $ORN, an ERC-20 token that runs on the Ethereum network. The maximum total supply of tokens has been set at 100 million. However, at the moment there are only 17 million tokens in circulation. Part of the remaining tokens will be released in the coming years, another part will be burned. The total supply of 100 million will therefore in all probability never be achieved.

 

So what’s the point of the ORN tokens? Orion has also thought carefully about this.

  • First, Orion’s ORN is used with every revenue source of the platform. Similar to Binance Coin (BNB), with ORN you get a discount on the trades you make on Orion’s platform.
  • The Delegated Proof of Broker consensus algorithm ensures that Brokers are required to stake ORN in order to be chosen to execute trades. While Non-Broker Stakers can stake ORN to vote for their chosen Broker.
  • All fees for transactions, whether they be traders or DeFi products, are converted into ORN tokens from the market, even if the trader chooses to pay the fee in non-ORN tokens.
  • Orion will sell advertising space on their platform. This ad space is purchased with $ORN.
  • To become a Broker you need at least $10,000 in ORN tokens.
  • 100% of the licensing fees generated by Orion Protocol’s B2B product range of DeFi solutions will be used to purchase $ORN tokens from the market and withdraw them from circulation. Removing these tokens from circulation causes more scarcity of the tokens.
  • #HODLORN: Users who have ORN tokens can unlock additional premium services on the platform. For example, ORN holders can set up advanced trade orders that are not available to other users, such as managing Stop Loss and Take Profit parameters. Holders also receive alerts for arbitrage opportunities and other useful features.

 

Orion Partners

As a terminal for the entire crypto market and as a platform for other companies in the crypto market, it is important to work with good partners. Orion will use the infrastructure of the mainnet and the interoperability applications of the Elrond blockchain to make the terminal as fast and seamless as possible. In addition, Orion also works with Wanchain for atomic swaps and with AllianceBlock so that you can manage your crypto yourself on the platform. Last but not least, we also discuss the integration of Chainlink here. This collaboration is mainly aimed at the B2B market. The decentralized structure and real-time price feeds from all central and decentralized exchanges in the market will provide Chainlink with data to improve their price oracles. This adds reliability and accuracy to the Chainlink ecosystem. This ensures that Orion Protocol trading data is available to other DeFi dApps through the Chainlink Network. Read more about oracles and Chainlink here.

 

Orion Protocol Roadmap

Orion is still a young project and therefore still has to prove itself. They promise to release a whole arsenal of applications in the coming year. Orion Terminal, the gateway to the entire crypto market, is the largest and most important project.

The terminal is chain agnostic. This means that several blockchains are used on the Terminal at the same time. For example, both the Ethereum blockchain and the Binance Smart Chain are currently being used. Elrond (EGLD), Avalanche (AVAX), Cardano (ADA) and Holochain (HOT) will be added later. impressive!

 

Orion Protocol Team

Orion CEO Alexey Koloskov is a blockchain developer and the lead architect and creator of the decentralized exchange Waves (Waves’ DEX). Alexey has extensive experience in developing and managing complex banking software and in managing large-scale IT projects. Kai Ali, Orion’s director of operations, is a blockchain strategic advisor/consultant for several projects, including Holochain, Morpheus Network, and Quant Network. In addition to the CEO and the COO, the Orion Protocol team has a large marketing department and a large back- and front-end developing team.

Criticism

Is everything rose scent and moonshine? No, that is never the case. First of all, it is important to realize that these are promises . The mainnet is still live, but a lot of the other applications are not yet. Investing in ORN is thus speculating on the success of the project. Orion Protocol will not be the first project that fails to live up to expectations. The roadmap also clearly shows that the vast majority of the project has yet to be released.

Secondly, Orion’s team owns a large percentage of the $ORN tokens. On the one hand, this ensures that the team has an interest in the success of the token, on the other hand, the distribution of the tokens is not decentralized at the moment.

 

Finally, Orion has already extended the deadlines of the various products and services they want to offer. Orion’s mainnet would initially go live in the fourth quarter of 2020. It is therefore not entirely inconceivable that the upcoming deadlines will not be met. However, this shows that Orion Protocol has a preference for quality: they prefer to postpone something rather than release it ‘half’.

Conclusion

All in all, Orion is an extremely ambitious project with many promises in both the business-to-consumer market and the business-to-business market. With the liquidity aggregator, Orion Protocol brings something unique to the market that has never been done before: bringing together liquidity from CEXs, DEXs and swap pools on a single platform. If Orion Protocol can successfully and timely fulfill all parts of the roadmap, then it certainly has the potential to grow a lot, especially given the current low market cap.

 

How do I buy Orion Protocol?

Buying Orion Protocol on Binance is a piece of cake. With this explanation you will be the proud owner of ORN within a few steps.

  1. Sign up for free at Binance here
  2. Login to your account
    Please note: keep your username and password safe!
  3. Press Buy Crypto at the top left and choose Bank Deposit
  4. Fiat tab instead of Crypto and check that it ‘s on Euro
  5. Choose iDEAL if you want the money directly on your account and Bank Transfer (SEPA) if you also like it if it takes a few days before the money is on your account
  6. Wait until your euros have been deposited into the Binance account
  7. Click on Trading at the top and select Classic
  8. You are now on the trading section of Binance. Click on FIAT on the right and select EUR
  9. A number of coins can be traded on Binance for euros. But, most of them are traded against Bitcoin. Look up the trading pair BTC/EUR and buy Bitcoin with your euros.
  10. BTC tab and look up Orion Protocol using its ticker ORN
  11. You will now find the trading pair BTC/ORN . By clicking on it, you can buy Orion Protocol
  12. Congratulations! You are in possession of your favorite cryptocurrency!

 

 

 

 

 

 

 

 

 

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