0x (ZRX)

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0x is an open, permissionless protocol allowing for friction less peer-to-peer trading of ERC20 tokens on the Ethereum blockchain. The 0x protocol is intended to serve as an open standard, driving interoperability among decentralized applications (dApps).

Our Joke Name

0x = Power to the Exchange

Basic Intro

Link to the main website

Link to price/market cap

Exchange Ticker (ZRX)

Coin or Token

Circulating Supply (540 Million)

Total Supply (1 Billion)

Block time (Under 60 seconds)

Market Cap Ranking

Review

  • The idea behind 0x
  • Decentralized exchange
  • ZRX Token
  • Off-chain order relay / On-chain settlement

The idea behind 0x

0x is an open, permissionless protocol allowing for friction less peer-to-peer trading of ERC20 tokens on the Ethereum blockchain. The 0x protocol is intended to serve as an open standard, driving interoperability among decentralized applications (dApps). Trades can be executed by using an Ethereum smart contract, publicly accessible, free to use for any dApp.

Decentralized exchange

0x OTC is designed to let counterparties exchange ERC20 tokens without the assistance of a centralized exchange. Users can create and cryptographically sign and share orders using different types of off-chain communication channels and execute the trades directly on the blockchain. In this way, the custody of your digital assets remains in control of the individual thereby eliminating the risk of losing funds.

ZRX Token

The native token to the 0x project is the ZRX token, a protocol token. The ZRX token has two functions: The first usage is as a governance token that allows the 0x team to upgrade the smart contracts over time without needing to migrate thousands of users, as this would bring the markets of the exchanges to a halt. The second usage is that ZRX tokens are used to pay trading fees to relayers who are hosting the order books. The reasoning behind the ZRX token to be used to pay fees (as opposed to just using Ether), is so that all stakeholders in the 0x ecosystem can participate in governance and voting.

Off-chain order relay / On-chain settlement

When using the 0x protocol, orders are transported off-chain, reducing gas costs. The relayers help broadcast orders and collect a fee each time they facilitate a trade. Anyone can build a relayer.

Summary

0x offers a trustless exchange protocol with a shared liquidity, this means a standard API is used so that relayers can easily aggregate liquidity pools, creating network effects around liquidity that compound as more relayers come online. 0x is open source, permission less and free to use. In summary: 0x is not only a decentralized exchange but a protocol for decentralized exchanges to use where ZRX tokens work to interact and pay a relayer to access their specific liquidity pool.

Pros

  • Free to use
  • High liquidity

Cons

  • No backing (asset, profits, commodity)