Opportunity in life has always been somewhat of a geographical lottery; a person’s level of economic freedom can be determined by where they were born and what their government decides.
Blockchain technology offers a chance to do away with all of it and establish a brand-new, decentralised, globally autonomous financial system. Additionally, it enables the tokenization of other types of wealth, including fiat money, stocks, financial instruments, real estate, video game items, and even reputation. The goal of 0x is to facilitate the development of this tokenized world and the free movement of all of this liberated value.
Want to learn more about 0x (ZRX), but are unsure of what it is or even where to start? Don’t be alarmed; this
What is 0x (ZRX)?
On the Ethereum blockchain, 0x (ZRX), an open-source protocol, provides seamless peer-to-peer asset trading. The group imagines a time when the Ethereum network would be used to tokenize all kinds of assets.
For instance, when someone sells their home, the 0x protocol offers a comprehensive solution that can be used to tokenize the property and transfer ownership to the buyer through a smart contract, as opposed to going through a time-consuming process involving lawyers, escrow agents, and title companies. This effectively turns real estate into a liquid asset by doing away with the need for any pricey intermediaries and speeding up the entire process.
With the 0x Launch Kit, anyone may create their own decentralised exchange (DEX) on top of 0x and decide whether to charge for their services. Similar to how SWIFT is the global standard messaging system that banks use to communicate with one another concerning the transfer of fiat currencies, the 0x protocol offers a common message format for exchanges.
Additionally, the group introduced the 0x API (application programming interface), which collects liquidity from all around the network and enables users to trade assets at the best price at all times.
How Does 0x Work?
Through the use of free, open-source smart contracts that can be used by any decentralised application, 0x facilitates the decentralised exchange of tokens (dApp). A smart contract is a transaction that executes itself when certain criteria are satisfied.
All deals on the majority of decentralised exchanges are powered by Ethereum smart contracts, but these trades are carried out directly on the blockchain. This implies that a gas price is incurred each time an order is placed, updated, cancelled, or filled, which can make the procedure rather expensive.
Utilizing an off-chain relay with on-chain settlement is 0x’s suggested method. This entails a user sending an order to a relayer, which functions something like a network bulletin board. The relayer then broadcasts the order off-chain so that any other user can fulfil it by providing the smart contract with their cryptographic signature.
Point-to-point orders, which allow users to place orders that can only be filled by particular people, are another service offered by 0x. The assets are never in the relayer’s possession in any sort of order, and only the actual value transfer happens on-chain, greatly lowering gas costs and network congestion.
Who Are The Founders of 0x? (History of 0x)
The 32 key members of the San Francisco-based 0x team have educational degrees spanning from engineering to finance. Will Warren and Amir Bandeali, who are the CEO and CTO, respectively, founded the 0x Protocol in 2016.
Will Warren received first place in the Consensus 2017 Proof-of-Work Pitch Competition after earning a Mechanical Engineering degree from UC San Diego. Warren served as a technical advisor for Basic Attention Token (BAT) and won the competition.
Amir Bandeali, a co-founder, worked as a trading specialist for Chopper Trading and DRW after graduating with a degree in finance from the University of Illinois.
In addition to the core staff, 0x has five advisers, including the co-founder of Coinbase, Fred Ehrsam, and the co-chief investment officer of Pantera Capital, Joey Krug. The ZRX initial coin offering (ICO), which took place in August 2017, made headlines when it sold out in under 24 hours and raised $24 million USD.
What Makes 0x Unique?
A DEX is able to conduct transactions far quicker and more affordably than exchanges that carry out all of their trades on-chain because to the off-chain relayer technology used by 0x.
But 0x enables more applications than only DEXs. The protocol can be used for exchange functionality for decentralised finance (DeFi) products as well as OTC trading desks, online marketplaces, portfolio management systems, and similar services.
Unlike other Ethereum-based decentralised exchanges, 0x allows both fungible and non-fungible tokens (ERC-721), allowing for the transfer of a greater variety of assets (ERC-20).
What Gives 0x Value?
ZRX is a utility token that relayers can use to pay trading commissions in exchange for hosting an order book. The 0x ecosystem experienced rapid expansion in 2020, and in January 2021 the protocol’s trade volume hit $5.7 billion.
ZRX benefits from its status as a governance token as well. The ability to vote on protocol updates and changes by all ZRX token owners may increase interest in the token. Due to a limited maximum supply, ZRX’s price and market capitalization may be affected by scarcity.
How Many 0x (ZRX) Tokens Are in Circulation?
A maximum supply of 1,000,000,000 ZRX and 847,496,055 ZRX are now in circulation for 0x (ZRX). In the 2017 ICO, 500 million ZRX, or 50% of the maximum supply, were sold to investors.
In order to promote a wider distribution of ZRX, the team set a hard cap on the quantity of tokens each participant may purchase. The distribution of ZRX tokens across more than 13,000 unique Ethereum addresses was later discovered. This was particularly crucial given ZRX’s function as a governance token.
The founding team received 10% of ZRX, early funders and advisers received 10%, and the remaining 15% was distributed to the 0x core development organisation and external project development fund.
Other Technical Data
The 99.9% uptime, 2% reversal rate, and 1.5 second response time of the 0x API are impressive.
Additionally, 7 out of 10 times, the 0x API is intended to provide better adjusted prices than Uniswap, 1inch, Paraswap, and Dex Ag.
How To Use 0x
By issuing a 0x order to a particular individual via email or instant chat and having them accept the trade, users can trade their ZRX tokens with that person. As an alternative, individuals can confirm the order they want by looking through the marketplace of orders posted by others. The 0x Protocol will carry out the exchange securely and independently.
The 0x API can be connected with wallets and DeFi programmes to offer exchange functionality at pricing that are among the best on the market. Projects like Matcha, MetaMask, Zapper, and many others use the 0x API.
Any market maker, automated market maker (AMM), or other on-chain decentralised exchange protocol is able to provide liquidity for the 0x ecosystem via the 0x API. Uniswap, Curve, Balancer, and Crypto.com are AMMs that currently provide liquidity.
Numerous teams are already leveraging the 0x protocol to enable projects to have direct access to available money. These consist of NFT-based projects like Gods Unchained, exchanges like 1inch, wallets like MetaMask, derivatives products like Opyn, portfolio management tools like DeFi Saver, and investment strategy products like Rari Capital.
How To Choose a 0x Wallet
Since ZRX is an ERC-20 token, you can store your ZRX coins in any Ethereum-compatible wallet, and the kind you select will probably depend on how many tokens you have and what you want to do with them.
The most secure method of storing cryptocurrencies is via hardware wallets, also known as cold wallets, like Ledger and Trezor, which also offer offline backup. They can be more expensive and come with a little bit more of a learning curve, though. As a result, they might be more appropriate for keeping bigger sums of ZRX tokens for seasoned users.
Software wallets are an additional choice that are both free and simple to use. They might be custodial or non-custodial and can be downloaded as desktop or smartphone apps. With custodial wallets, the service provider is in charge of managing and backing up the private keys on your behalf. Non-custodial wallets keep the private keys on your device using safe components. While practical, they are viewed as less secure than hardware wallets and would be better suited to individuals with less experience or lesser quantities of ZRX tokens.
Additionally free and simple to use, online wallets or web wallets. Although they may be accessed via a web browser on various devices, hot wallets are regarded as less secure than hardware or software alternatives. You should pick a reliable company with a solid track record in security and custody because you are putting your trust in the platform to manage your ZRX. They are therefore best suited for modest holdings or for seasoned frequent dealers.
You may easily store and exchange your ZRX coins thanks to Kriptomat’s secure storage option. You can store your 0x (ZRX) with Kriptomat and take advantage of its user-friendly features and enterprise-grade security.
When you choose our secure platform as your storage option, you can quickly buy, sell, and exchange 0x (ZRX) for any other cryptocurrency.
0x Staking
Stake-based liquidity incentives were introduced by 0x in 2019 and reward market makers for providing liquidity with protocol fees based on their ZRX stake. Any ZRX holders, including market makers with insufficient ZRX, can benefit from incentives by pooling their ZRX tokens in a staking pool for third-party delegators.
Wrapping Up
All value can easily move in a tokenized world powered by 0x, including traditionally illiquid assets like real estate. The Ethereum blockchain’s seamless peer-to-peer asset trading is made possible by the protocol. On 0x, anyone can create a decentralised exchange, and the 0x API gathers liquidity to make token swaps possible at the most competitive rates.
The protocol makes use of off-chain relayers to lessen Ethereum’s congestion and enable faster and more affordable trade execution. The introduction of staking and the ZRX token’s provision of governance rights and compensation for relayers encourage favourable network economics.
With its ecosystem fast growing and over 50 distinct DeFi projects now relying on or integrating with 0x, trading volume on 0x rose in 2020. Although there are other projects working on the decentralised exchange of assets, 0x will always have the first-mover advantage because the ZRX ICO was very well received by investors.
0x FAQ
Are the 0x protocol’s smart contracts audited?
The autonomous smart contracts used by the 0x protocol are indeed all open-source and subjected to both internal and external audits by the 0x core team’s protocol division (Consensys Diligence, Trail of Bits).
What is a 0x staking pool?
It is essential for the health of 0x markets that 0x liquidity providers (LPs) are rewarded for their active involvement. The LP needs to stake ZRX tokens in order to receive these rewards. To achieve this, LPs establish staking pools that enable them to stake their ZRX while also luring others to stake their ZRX tokens in exchange for a share of the earnings.
How to Buy 0x
It’s simple to purchase ZRX tokens by going to Kriptomat’s how to buy 0x (ZRX) website and selecting your desired payment method.
How to Sell 0x
By navigating the UI and selecting your preferred payment method, you can quickly sell any 0x (ZRX) that you already own and have stored in a Kriptomat exchange wallet.
0x Price
Numerous conventional variables, such project news and developments, market sentiment, the volume of cryptocurrencies traded on exchanges, and the state of the economy in general, have an impact on the price of 0x.
Demand may also be fueled by the governance privileges and staking incentives provided by ZRX tokens, and because of the capped supply, scarcity may have an impact on ZRX price and market cap.
