0x is a decentralized exchange protocol. It is an open-source software others can use if they want to set up their own decentralized exchange of ERC-20 (Ethereum-based) tokens. ZRX is the token that empowers the 0x platform.
A decentralized exchange has software that runs across many different computers, allowing, in theory, a safer and more anonymous token trading experience. It is an order book that accepts buy and sell orders, and then matches them up. Coins are kept in your own wallet at all times and there are no trading fees. The downsides of this are that the site runs slower, and many features of regular crypto-exchanges are not available (such as futures trading and margins).
0x allows anyone to use their software for free. Anyone who creates their own decentralized exchange on the 0x platform is known as a Relayer. The ZRX tokens are used for making transactions on the blockchain from the Relayer. ZRX are also used in governance, as holders of ZRX can cast votes on community initiatives for later development.
ZRX was launched in August 2017, with a total supply of 1 billion. It is not a mineable token and the tokens are not necessary to use the protocol. Relayers can charge transaction fees of their own, which get converted to ZRX before being settled on the blockchain, but other than optional fees and voting rights, ZRX is not as critical to the 0x environment as many other projects’ native tokens are. However, the ability to use the 0x protocol for free, gives the project much more exposure as users are able to integrate this protocol without any cost to them or their project.
Currently, 0x powers some major DApps and a couple of known exchanges. The DApps Augur, District0x, Maker, and Request Network all run on top of the 0x protocol. Also, DDEX and Ethfinex are probably the best-known decentralized exchanges which currently live on this protocol.
Interesting Facts:
● An up to date list of dApps and exchanges using the 0x protocol can be found here: https://github.com/0xProject/wiki/blob/master/community/List-of-Projects-Using-0x-Protocol.md
● Only Ethereum-based tokens can be traded on an exchange powered by 0x, but this may change in the near future, if the community votes to incorporate other token platforms such as EOS, Neo, or NEM.
● The ZRX token sale was controlled in a way to ensure the most decentralized environment, posing restrictions and preventing groups of wealthy people from buying up the majority of the tokens.
● A full breakdown of how the 0x governance works is explained in detail here: https://blog.0xproject.com/governance-in-0x-protocol-86779ae5809e
Website: https://0xproject.com/
Whitepaper: https://0xproject.com/pdfs/0x_white_paper.pdf
Coinmarketcap: https://coinmarketcap.com/currencies/0x/
Originally published at cryptofinance24.com.
