A Deep Dive into the Injective Cannon: How Does Its Unique Order Book Model Work?

Achieving high-performance on-chain order books in the DeFi space is hailed as the 'holy grail', and Injective has successfully tackled this challenge with its innovative 'Cannon' order book engine. So, how does it work?

In simple terms, Cannon cleverly adopts a hybrid model of 'off-chain matching and on-chain settlement'. It's like completing a trade at a highly efficient over-the-counter market, but all final results are publicly recorded on the blockchain, ensuring transparency and security. @Injective #Injective $INJ

Its workflow can be divided into three steps:

1. Off-chain order matching: When you submit a limit order, it is not directly sent to the chain but enters a super-fast off-chain order book network run by validator nodes. Here, orders are matched at near-instantaneous speeds, avoiding delays and high costs caused by congestion on the main chain.

2. Batch validation and consensus: Validator nodes regularly package a batch of successfully matched transaction results into a 'block proposal'. Subsequently, the entire network verifies the block through a Proof of Stake (PoS) consensus mechanism to ensure the validity and correct order of transactions.

3. Final on-chain settlement: Once consensus is reached, the block containing multiple transaction results will be finalized and permanently recorded on the Injective blockchain. Thus, the delivery of assets and changes in ownership are truly completed.

This design retains the speed and user experience of centralized exchanges while ensuring the decentralized custody of assets through blockchain settlement, achieving a perfect balance between performance and security.