0x

0x | Decentralized Protocol for Exchanging ERC-20 Tokens

0x (ZRX) Cryptocurrency Controlled By Developers

0x (ZRX) is a cryptocurrency that was released in 2017 via an initial coin offering (ICO) that raised $24 million. There are a total of 1 billion ZRX, but only 500 million were released to investors during the ICO and the rest were kept by the developers. The market cap is an impressive $350 million with daily trading volume in excess of $10 million, making 0x one of the most valuable and widely used cryptocurrencies.

However, the fact that half the total coins are held by developers results in the 0x market being quite risky for investors, because at any time the developers could dump their coins and cause massive losses for everyone else who owns ZRX.

Decentralized Trading of ERC-20 Tokens

The 0x protocol was built to provide decentralized trading of ERC-20 tokens. ERC-20 is an extremely popular mechanism to create new cryptocurrencies that use the Ethereum blockchain. Ethereum’s Ether is the 2nd most valuable and widely used cryptocurrency behind Bitcoin, with a market cap of $48 billion. And, due to the immense amount of mining power maintaining and securing its network, it is extremely secure.

Therefore, ERC-20 tokens which use the Ethereum blockchain are inherently extremely secure. Anyone can generate an ERC-20 token in less than 20 minutes with a smart contract, and many important and widely used cryptocurrencies have been created this way.

Far Superior Trading Compared to Centralized Exchanges

Using the 0x protocol, ERC-20 tokens can be traded on a decentralized platform, which is far superior to using a centralized exchange like Binance. On a centralized exchange, you are trusting the exchange owner with your money, and it can be frozen, stolen, or hacked at any time. Also, anonymity is compromised since almost all exchanges are required by law to record user identification information before users can withdraw funds. With a decentralized trading system like 0x, you have full control of your money at all times and can remain totally anonymous, giving you peace of mind.

Orders are transported off chain when using 0x to relayers, reducing blockchain bloat and increasing trading speed. All trades are settled up on the blockchain itself though, which preserves cryptographic security. Anyone can create a relayer, which is essentially a cryptocurrency exchange, and charge trading fees paid with ZRX. Relayers can communicate and aggregate with each other, thus increasing the order book and liquidity of the market. 

Easily Integrated into DApps

The 0x protocol can easily be integrated into decentralized applications that need exchange functionality. There is a javascript codebase that makes this process easy. With 0x, developers can build exchanges, future markets, gambling, and lending clubs.

Decentralized exchanges like 0x are essential for the preservation of anonymity and security when using cryptocurrency. It is likely that the use of 0x and its currency ZRX will increase in the future, and therefore its important to know about if you are a crypto trader. It is a better option than handing over your money to a centralized exchange.

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This is not advice.  Advice should be accepted by your chosen legal counsel only and financial advice should come from a licensed or certified financial professional. As always – do your homework and make decisions based on your own education.  Seek information and look into projects before adding to or diversifying your portfolios. 

Reference: 

https://0xproject.com/pdfs/0x_white_paper.pdf