Nothing has to be overly complex, sometimes all it takes is a little thinking out of the box to achieve certain heights.
Crypto has an untapped ocean of opportunities to build and grow sustainable value but things like liquidity are a great hindrance in the current market.
Some say liquidity makes a market, well, it is true that without a product and a willing buyer, a market doesn't really exist but the tiny detail left out is that people have a common rigid picture of what a market should look like which makes liquidity appear like something needed before a market can be established.
Get this, picture a market where each demanded product and service was already available. Surely, as much of fun as that sounds, no market actually functions in that manner, some products and services need to collect demand data before they can be made available, so in essence, there has to be a transfer of information from consumer to traders.
Building A communications network
We could apply a similar system of trade to crypto by building what I call a cross-chain communication network. You know, when we talk about interoperability in blockchain technology, we often just talk about the use of this feature to facilitate complex autonomous operations leaving very basic values that could be tapped.
Consider an open market where anyone can create offers or make trade bids, and these listings would be broadcasted to multiple blockchains through the open cross-chain communications network. At this point, a vast number of individuals have a chance to either accept an offer that has been made or ignore it or propose a new one.
The purpose of this is simply to eliminate the risk associated with the current decentralized markets which are smart contracts vulnerabilities which lead to the loss of assets and if we look at it closely, having assets tied to one or a few contract addresses does translate to centralization and high risk.
Automating trade execution with concentrated liquidity
The idea of having a cross-chain trade communication network is to solve one thing: liquidity crises. Some projects are born and are unable to tap into the value of the ecosystem, the broader market is far from them due to low home market liquidities from the few starting participants.
A cross-chain trade communications network really just takes away the need to have a liquidity pool because the vast ecosystem is now communicating and trading through offer signals made through this channel.
That said, leveraging concepts behind things like concentrated liquidity which typically involves defining a desired price range which one is comfortable with a smart contract using up his asset in a pool.
Applying this to this system would simply mean creating an autonomous response system that watches the trades signal channel for favorable offers. Once a preferred bid or ask is signaled through the channels, an autonomous trade fill is triggered and the said account accepts the offer.
This process makes it easier for trades to take place by simply brushing up the response layer as it would be practically draining for individuals to sit and watch for various trade signals across numerous assets markets and assets.
A system of this nature would help eliminate the risk associated with smart contracts, aid access to liquidity - in infinity and even serve as a promotions network for small projects to get eyes by making juicy offers, a win win win.