Central Limit Order Books (CLOBs) are transparent, order-driven markets that match buy and sell orders based on price-time priority. Their key advantages include precise price control, deep liquidity, and advanced trading capabilities—ideal for institutional or large-scale traders. Compared to algorithmic AMMs, they enable better execution but carry risks like market manipulation and require robust infrastructure. With Layer‑2 scalability and improved on-chain designs, CLOBs are rapidly gaining relevance in DeFi, bridging the gap between centralized efficiency and decentralized transparency.