Order Books and the XRPL

Found in: Understanding Order Books on the XRPL

Order Books and their use-case on the XRP Ledger is an important concept to know. This lesson quiz will confirm you know how order books work on the XRPL.

Which of these platforms don’t offer a built in order book?

A) Bitcoin

B) Ripplecoin

C) Ethereum

D) Dogecoin

E) All of the above

Why is trading on the XRPL a little different than on other blockchains?

A) The XRPL offers a built-in software wallet where users can safely store their currency.

B) The XRPL uses a Central Limit Order Book instead of an AMM.

C) The XRPL uses an AMM instead of a Central Limit Order Book.

D) The XRPL uses both a Central Limit Order Book and an AMM.

What is an Order Book?

A) A queue of trades that are being processed.

B) A log of all the trades that happen on an exchange.

C) A list of traders who want to buy a specific token.

D) A list of offers from traders to buy or sell tokens for a specific exchange rate.

When does the Order Book function the best?

A) When the price of tokens is highest.

B) When the price of tokens is lowest.

C) When there is a high volume of traders utilizing the platform.

D) When the exchange rate between tokens is most optimal for traders.

Why is the XRPL good for DeFi?

A) The XRPL’s Proof-of-Work and Proof-of-Stake systems make it difficult to hack.

B) The XRPL always gets the best exchange rate for trades.

C) The XRPL can handle a large volume of transactions quickly and cheaply.

D) The XRPL’s trading algorithm always nets the highest gains per transaction.

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