0x Protocol Coin Review: Beginners guide
0x (ZRX): An Ethereum-based decentralised exchange protocol.
Industry type: Decentralized marketplace.
What is 0x? 0x is an Ethereum based protocol designed to innovate decentralised exchange on the Ethereum network with no single point of failure. An exchange is a marketplace for users to trade financial instruments, and a decentralised exchange is one that is distributed across many points.
What gives it value?
- It is made for the Ethereum network, one of the most successful blockchain networks to-date.
- Ethereum ERC20 tokens can be exchanged with minimal fees.
- It removes the security risks of having a single point of failure.
- ZRX tokens have a fixed supply of 1 billion.
- Rather than funds being held in a single pool on the exchange that is vulnerable to attack, traders are required to hold their tokens in their own wallets.
- The Open Order Book (OOB) is a decentralised order book that is sustained by node relayers. Relayers are members who run nodes on behalf of traders with the Radar Relay to find and execute trades.
- The Radar Relay is a decentralised application on the Ethereum network that works in collaboration with 0x to scan liquidity information, finds the best deals for traders, and executes trades on smart contracts.
- Relayers will keep the bulk of the transactions separate to the Ethereum network to avoid bottlenecking the blockchain.
- Will Warren is the co-founder and CEO of 0x. Warren is based in San Francisco with a background in mechanical and structural engineering and applied physics.
- Amir Bandeali is the co-founder and CTO of 0x. Bandelier is based in Chicago and has a background in professional trading.
- Ethfinex is an Ethereum-based marketplace that uses the 0x protocol for decentralised exchanges.
- Aragon, a decentralised application on the Ethereum blockchain for creating decentralised organizations, has partnered with 0x for its client organisations to trade tokens without a central broker.
0x Protocol Review: The Good
- ZRX token holders and traders will have the right to vote for important decisions on the exchange.
- It provides decentralised applications on the Ethereum network with exchange functionality.
- It is a working protocol used by over 30 decentralised applications.
- Funds cannot be hacked from a central pool as tokens stay in the users’ wallet until the transactions are executed.
- It diverts traffic away from the Ethereum network.
0x Protocol Review: The Not So Good
- For the moment, it is only restricted to ERC20 tokens.
- The team at 0x is working on the most effective way for the 0x community to have a democratic say over the future of the exchange. They are working to have launched a ‘Liquid democracy’ by the year 2020.
0x is a working protocol that provides a much-needed service to many different users on one of the most popular blockchain networks today. In my opinion, decentralised exchanges are likely to be disruptive to their centralised counterparts and gain popularity in the near future. Considering that 0x has ‘skin in the game’ with great working technology, it stands a good chance of becoming a popular choice for its services. However, as it is currently limited to exchanging ERC-20 tokens its future performance is intimately tied to a giant who has red-hot competition on the horizon.
The current 0x price, market cap and charts.
Where to store this crypto:
Hardware wallet: www.bitgear.com.au
Desktop wallet: www.exodus.io
Online wallet: https://www.myetherwallet.com
Mobile wallet: https://enjinwallet.io
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Further information: Whitepaper: