0x (ZRX) Review, Price, Market Cap and more

What is 0x?

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.

Decentralized Exchange

0x is an open protocol that is designed to offer a decentralized exchange as part of the Ethereum blockchain. 0x is made using a protocol that involves Ethereum smart contacts that allow those around the world to run a decentralized exchange.

The relationship between ZRX and Decentralized Exchange can be understood by the following comparison: ZRX is to a decentralized exchange as Ethereum is to a dAPP. To be clear, 0x itself is not a decentralized exchange; it's a foundation upon which decentralized exchanges can be built on. Several exchanges have already been developed using 0x.

ZRX is the native token of 0x. It is primarily a governance token but is also used for relayers to charge fees.

Governance is often overlooked in its importance. ZRX is used as a governance token in order to make the protocol future-proof. Over time, upgrades are necessary because of changes made to the protocol or the underlying blockchain — Ethereum.

The exchange protocol is implemented within an Ethereum smart contract that is publicly accessible and free to use (no additional costs are imposed on users beyond standard gas costs). It is written in the Solidity programming language and contains two relatively simple functions: fill and cancel. The entire contract is approximately 100 lines of code and it costs approximately 90k gas to fill an order.

Point-to-point orders allow two parties to directly exchange tokens between each other using just about any communication medium they prefer to relay messages. The packet of data that makes up the order is a few hundred bytes of hex that may be sent through email, a Facebook message, whisper or any similar service. The order can only be filled by the specified taker address, rendering the order useless for eavesdroppers or outside parties.

Broadcast Orders: 

For liquid markets to emerge, there must be public locations where buyers and sellers may post orders that are subsequently aggregated into order books i.e. exchanges. Building and operating an exchange is costly and the protocol we have described so far does not provide an incentive for someone to take on such an expense. Broadcast orders solve this issue by allowing anyone to act as an exchange, maintain an order book (public or private) and charge transaction fees on all resulting liquidity. Entities that host and maintain an order book are referred to as Relayers rather than exchanges. Where an exchange must build and operate proprietary infrastructure, execute trades and handle user funds, Relayers merely facilitate signalling between market participants by hosting and propagating an order book that consists of generic messages. Relayers do not execute trades on behalf of market participants as this would require market participants to trust the Relayer. Instead, Takers execute their own trades.

Most exchanges run on their own proprietary infrastructure which fragments liquidity across the board. Allowing anyone to build a decentralized exchanges (or relayers as 0x calls them) on the 0x protocol gives way to networked liquidity. Relayers can share liquidity across the network since they use shared infrastructure (0x protocol) instead of proprietary infrastructure. They will also be incentivized to share liquidity by fee-sharing.

1. Maker approves the decentralized exchange (DEX) contract to access their balance of Token A2 .

2. Maker creates an order to exchange Token A for Token B, specifying a desired exchange rate, expiration time (beyond which the order cannot be filled), and signs the order with their private key. 3. Maker broadcasts the order over any arbitrary communication medium. 

4. Taker intercepts the order and decides that they would like to fill it. 

5. Taker approves the DEX contract to access their balance of Token B. 

6. Taker submits the makers signed order to the DEX contract. 

7. The DEX contract authenticates makers signature, verifies that the order has not expired, verifies that the order has not already been filled, then transfers tokens between the two parties at the specified exchange rate.

Coinbase

Fortunately, we have Coinbase support for 0x purchases

Coinbase is a convenient and cheap way to buy 0x (if available in your country). Coinbase will charge a fee of between 1.49% and 3.99% depending on your payment method (credit cards have a higher fee than wire transfers). The buying process itself is very simple. Just create an account and add your payment method, then go to the Buy/Sell section and simply input the amount you wish to buy. You'll have to go to a quick verification before doing this, however, so have your phone and ID ready.

MEW

As we already mentioned, 0x is based on the Ethereum ERC-20 standard which means that all ERC-20 supporting wallets can house your USDC. For an online-based wallet, we recommend MyEtherWallet. The wallet offers a brilliant combination of speed, trustworthiness and simplicity, making it the most popular online wallet for ether and any ERC20-based tokens.

Simply visit myetherwallet.com and set up your wallet with a method of your choosing, just make sure to store your private key somewhere safe. It's wise to have it written down on paper in case your PC/notebook malfunctions.

The only downside to using an online wallet like MEW is that there are literally hundreds of phishing scams out there to get your eth, so you better double check the address everytime and make sure to watch out for any malicious activity on your browser or PC.

Since 0x is an ERC-20 based token, it can be stored both on the Ledger and Trezor.

Ledger

As for using the Nano Ledger S, the first step towards setting up your device is unboxing you device and checking if you have received all the accessories with the device. Once you have unboxed your device, you need to configure it and initialize it before being able to use it. The process is quite simple and will hardly take about 20-30 minutes post which you will be set to use your Ledger Nano S device. This video does a pretty good job at explaining how the setup works.

Trezor

As for Trezor, installing is really simple. To properly install it users should attach the unit to the computer. After that continue with installing the  bridge which allows the Trezor to join with the computer. The first step is to connect the Trezor to device’s USB slot with the cable given in the box.  After that, go to myTrezor.com and proceed with installing the browser extension. Trezor can also be used on Android or an iPhone, or on a Windows or Mac computer. Now, initiate the extension and myTrezor will direct you to pick a PIN. After this, you will notice nine buttons but the numbers are hidden. After this, users should check the Trezor’s screen to recognize which numbers are in which place because it switches every time. Now set the PIN. Shortly after, Trezor should present a 24-word wallet “seed”. In short, one word at a time. Note down this seed and save it carefully. If your Trezor device malfunctions or is lost, you can utilize the seed to reconstruct the complete wallet. This video explains how to set up your trezor quite well. 

Exodus

First, we have Exodus, which supports a ton of other cryptocurrencies along with 0x and is pretty straightforward and easy to use. Just download the app from the official site(exodus.io) and get straight into creating your wallet.  Exodus stores your Private Keys on the machine you choose and not on any server, providing you with a relative peace of mind when it comes to the security of your coins. 

Atomic Wallet

Another option is Atomic Wallet.

Atomic Wallet is a desktop wallet built with security, anonymity and decentralization in mind.

Atomic Wallet was designed to leverage the potential of atomic swaps and become part of a fully-fledged decentralized cryptocurrency ecosystem. 

The “physical” wallet itself is a PC application that can be downloaded onto your computer. Your private keys and other data will then be stored on your PC in an encrypted form.

This means you hold your own keys, which are encrypted and kept only on your own device, control your own funds and can efficiently swap tokens without needing to go through a centralized exchange.

This application then interacts with the blockchains of supported coins. For example, if you check your transaction history in the program, it looks it up on the blockchain and then shows it to you, rather than storing this potentially sensitive information somewhere.