My post today will center on 0x protocol and its ZRX token.
Ox (pronounced Zero ex) protocol and ZRX token were invented to raise the standard of decentralized exchanges that have been in existence before its invention.
The idea behind the development of 0x is, to build a network of exchange in the Ethereum blockchain that is steadfast and completely independent of intermediaries.
ZRX, on the other hand, is the official token of the Ox project.
By the end of this post, you must have gotten all salient details about 0x and ZRX, its inner workings, top exchanges to trade ZRX and the best wallets to store it.
Just tag along with me as I drive you through this absorbing path of knowledge.
Listed below are the specific topics I will cover about the 0x/ZRX
- What is 0x? = A Complete 0x Basic
- How 0x Works
- ZRX Token
- Top Exchanges to Buy, Sell and Trade ZRX
- Best ZRX Wallets
- DAPPs on 0x protocol
- List of Relayers on 0x protocol
- 0x Official Resources and Forum
- Is the Future of ZRX Bright?
A click on any of these subheadings will get you to the part where it is discussed in detail.
Enjoy your reading!!!
1. What is 0x? – A Complete 0x Basic
Before I delve into what 0x is, I will like to begin with this preamble;
Decentralized exchanges like EtherDelta on the other hand, redistribute functions without the need for central control or intermediaries. But it is slow and costly.
In other to resolve the challenges faced by these exchange systems, 0x was conceived.
0x protocol was developed in October 2016, by Will Warren and Amir Bandai. These two founders were involved in smart contract research, deployment, and development.
Other developers of this protocol were; blockchain and software engineers, graphic designers and skilled individuals who worked with great synergy to achieve this nifty project.
Ox is an open-source protocol that enables decentralized exchanges on the Ethereum blockchain.
This protocol facilitates low friction peer-to-peer exchange of ERC20 tokens and works for every person who uses an ether wallet, like Exodus, Coinbase, Jaxx and the rest of them.
The objective of 0x is to create a platform where multi-asset- proxy, ranging from stockfish to any kind of asset could be exchanged on the Ethereum blockchain; since the world is evolving to a tokenized stage.
Furthermore, 0x protocol does not run on a single DAPP, it is instead a building block that connects the interoperability of protocols to drive a more complex DAPP.
Most likely, this project will draw the curtains open for a better and more advanced decentralized system to creep in and win over the older exchange methods that are deficient and resource consuming.
In the next subheading, I am going to show you, how 0x works.
I hope I am still communicating?
2. How 0x Protocol Works
0x protocol carries out its project in a message format through Ethereum smart contracts and relayers.
In this way, it removes the functions of the middle man entirely in other to perform a decentralized exchange.
0x works through these ways;
- Ethereum smart contract
- 0x OTC
Ethereum Smart Contract
0x uses the Ethereum smart contract to broadcast and settle order; these are orders written on the Ethereum virtual machines and executed automatically as soon as the written requirements are met.
This diagram above shows how the Ethereum smart contract works using 0x protocols. (source: 0x white paper)
Now let’s break down these processes; assuming a maker wants to trade his ERC-20 token (token A) For another ERC-20 token (token B);
- The maker would first, approve the DEX smart contract to access his balance of token A.
- The maker creates an order to trade his token A for his desired token (B), specifying all terms and conditions (the exchange rate and the expiration date) and then sign off with his private key.
- He broadcasts the order through any communication medium available to him.
- An interested taker consents the order and goes for it; he submits the maker’s order to the DEX contract.
- The DEX contract verifies maker signature, validity, and openness of the order and finally commences transfer between the taker and maker.
The 0x smart contracts are settled on the Ethereum Blockchain with ease, low transaction price, and no intermediaries.
To consonance the challenges faced by central and decentralized exchanges, ox employs a protocol that combines off-chain ordering and on-chain settlement, through relayers.
These relayers are Dapps or other protocols building on 0x that maintains an off-chain order book until the order is being executed on the blockchain but then charges for the services it has rendered.
What these relayers do is to; host in their order books already signed orders from market makers which can be checked through their various DAPP, thus maintaining an off-chain order.
Before order could be placed on the relayers order book, a marker will first; agree with the fee charges the relayers have set in their various DAPP and send his order to the address the relayer provides.
When a taker emerges, he submits the makers’ order on the Ethereum blockchain for the transfer to be carried out.
Thereafter, the relayers get paid for services rendered.
I believe this has quite explained the off-chain ordering and on-chain settlement.
In addition to the Ox protocol, the project team also developed the Ox OTC and it is live on the Etherem test network.
This project was established to allow a peer-to-peer exchange without the need for a relayer.
This planned design facilitates a point- to- point order protocol, making it possible for users to connect to the desired counterparty directly.
More so, a maker using the 0x OTC already has a specified taker in mind and simply forwards a link to the taker using any communication method like Facebook, Email, WhatsApp, etc.
It is only this addressed taker, that has the veto to fill the maker’s order.
Types of Order
There are two types of order in 0x protocol, they are;
- Broadcast Order: in this type of order, the maker does not specify a taker, thus any taker that deems interest can fill the makers’ order.
- Point -to- Point Order: this type of order is obtainable in 0x OTC. Here the maker specifies a takers address and it is only this taker specified that can fill the order.
Now that we have seen how this protocol works; let’s look at the 0x token (ZRX).
Subsequent to the 0x protocol, ZRX was developed.
ZRX is the official Ethereum token of 0x protocol.
This token was launched on August 15, 2017.
The ZRX is an ERC-20 token designed to be scalable and has garnered amazing liquidity within a short period of its creation.
As at the time of this post, the price of ZRX is $0.245803 and its currently at #42 on CoinMarketCap by market capitalization with the total liquidity of $153,942,975.
As indicated in the 24h movement chart, ZRX is trading $21,072,276 with the circulating supply of 626,286,727.
***figures seen from coinmarketcap on the 5th of March 2020.
ZRX token is used to pay relayers for keeping an off-chain order .it also acts as a form of governance for the 0x protocol improvement.
The act of governance simply means; that every holder of ZRX token has an input in the future improvements to be made on the 0x protocol. Click here to learn more.
In the next sub-heading, I am going to walk you through the top exchanges that you can trade your ZRX.
Let’s get at them already.
Top Exchanges to Buy, Sell and Trade 0x (ZRX)
There are more than 50 exchanges available for you to buy, sell and trade ZRX. I am only going to discuss 7 of these exchanges below;
Founded in 2017 by Changpeng Zhao in China.
This platform supports the trading pair of about 500 cryptocurrencies and all the top 100 cryptocurrencies on coinmarketcap.com.
Binance is the best available exchange for you to trade your ZRX.
The reason for this is that the platform provides more trading options for the ZRX exchange pair.
0n Binance you can trade;
OKEx is a privately owned company that was founded in 2014 by Star Xu.
It has its headquarter in Malta, the world’s Blockchain Island.
The exchange has an average daily trade volume of about $2.5 billion placing it at No. 7 in the top crypto exchange by liquidity.
The exchange supports over a hundred cryptocurrency with many options for trading pairs.
in OKEx, you can trade;
Coinbase was founded in 2012 by Brian Armstrong and Fred Erhsan. It is located in San Francisco.
The exchange first started as a brokerage service, albeit additional services have been added to it presently.
Coinbase is available to users in over 55 countries, including 13 African countries; Nigeria not included.
Although Nigeria is not on the list of the country supported; Nigerians, however, can store, send and receive crypto using this platform.
You can trade;
Changelly was established in 2016.
The exchange is a non-custodial cryptocurrency exchange, located in the Czech Republic.
Changelly offers a seamless swap with the best price in the market and currently has amassed over 1million users.
Changelly supports over 100 cryptocurrencies and three fiat currency (EUR, USD, GBP)
Founded by Bill Shihara, Richie Lai, and Rami Kawach, this trading platform is highly renowned for its stability, speed, and guaranteed security.
Bittrex supports a plethora of tokens with over 450 trading pairs for BTC alone but only supports one fiat currency; USD. You can trade;
Shapeshift is an instant exchange founded in August 2014 by Erik Voorhees.
The company has its headquarters in Switzerland.
Shapeshift supports 51 cryptocurrencies including ZRX.
IDEX is a decentralized exchange based on the Ethereum blockchain.
It allows the trading pair of all the ERC-20 tokens
Just like other decentralized exchanges, IDEX facilitates smart contracts that are trustless and secure.
Best 0x (ZRX) Wallets
ZRX can be stored on any wallet that supports the ERC-20 token.
Below I am going to walk you through 4 best wallets to store your ZRX.
They are hardware wallets produced by French companies.
This is one of the highly recommended places that you can store your ZRX.
It has a super encryption technique to keep your fund safe and secure.
Trezor likewise, is a good offline wallet for you to store your ZRX.
it is a small, key-sized device that connects to your computer with a USB cable.
You can safely use Trezor in a malware-infected computer
Note: Hardware wallet is the safest place you can store your tokens. If you have a large amount of ZRX, then I advise you to store them using a hardware wallet.
MyEtherWallet is a good desktop wallet to store your ZRX.
MEW wallet is one of the best options for storing, sending and receiving, both Ether and Ethereum related tokens.
Coinomi is a mobile wallet that supports the storage of 1500 assets.
It is available on Windows, macOS, and Linux.
Apart from storing your digital assets, you can also swap crypto using Coinomi.
5. Exchange Wallet
Exchange wallet is a wallet offered by an exchange a user is trading with.
You can store your ZRX with the exchanges I have mentioned above(minus the non-custodial ones) or with any of the exchanges that support ZRX token.
DAPPs Built on 0x Protocol
0x acts as a building block for the decentralized exchanges, it integrates with other DAPPs.
These DAPPs can plug into the 0x standard relayer API, to execute an exchange at the best available prices, the 0x relayers have provided.
The list of DAPPs currently plugged into 0x protocol are;
- Aragon, Auctus, Augur, b0X, Request Network, EasyTrade, ChronoBank, Dharma, District0x, dydX, MelonPort, Hut34Project, Lendroid Maker, OpenANX.
List of Relayers on 0x Protocol
0x has over 10 relayers plugged- into its protocol to provide an off-chain order book. The 0x standard relayer API also drives the interoperability of 0x DAPPs for a shared liquidity pool.
Below is the list;
- Amadeus, Bamboo Relay, DDEX, Dextroid, Ethfinex, IDT Exchange, Intex, MobiDex, Open Relay, Shark Relay, Paradex, Starbit, The Ocean, Token Jar, Tokenlon.
Other interested relayers are also welcomed to the plugin.
0x(ZRX) Official Resources and Forums
Here are some options for you to learn more and keep up with the 0x protocol.
Is the Future Bright for 0x/ZRX in 2020?
The 0x team has established a great score mark in the exchange history and has continued to deploy more projects and products that will improve a decentralized exchange on the Ethereum blockchain.
What the future holds for the ox token (ZRX) this year 2020 is yet to unfold.
The price of ZRX presently is $0.245803 and it is still early to speculate whether the price will appreciate or depreciate in the future.
However, many experts hold a high value and hope on the destiny of ZRX and have speculated on a favourable increase in price that the token will reach/attain for the year 2020.
According to the speculations of Coin News Telegraph, ZRX will reach as high as $2 by the end of 2020.
There again, the CoinSwitch has also speculated that the ZRX is expected to reach $2.732 by the end of 2020.
From my own judgment, it is really tricky to speculate on the price turns the ZRX token will take, keeping in mind the volatile nature of cryptos; most especially altcoins.
As of last year, being; 2019, the price of 0x went outrightly down. From $0.303559 on the 1st of Jan to $0.189463 on the 31st of Dec.2019. This was a great punch on ZRX investors.
Notwithstanding, I believe that with the efforts of the 0x team, the ZRX token would be a successful project the world will reckon with in the nearest future.
One of the advantages the 0x protocol has over its counterparts is, its ability to perform an off-chain order.
This is a very good improvement that has thus, facilitated low gas cost and reduced reliance on the blockchain.
This is where I will end the post for today,
By now I believe you must have gotten so much to say about 0x and its token.
Now, it is time for an interactive session; where you are free to share your thoughts.
So, you can tell me;
Do you think the 0x protocol holds a brighter future for the decentralized exchanges?
Have you performed an exchange, using the service of the relayers? What is your experience?
Are there other features you think the protocol needs to improve on?
It will be my interest to discuss them with you in the comment section below.
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