ZRX Coin – A Decentralized Protocol

zrx coin

Source of Image: https://0xproject.com/

Decentralization of the economy and omission of the third party for verification is happening now. No more Ifs and Buts. The Blockchain technology has been improving exponentially with the enormous number of contributors and the advent of various concepts, like smart contracts and Lightweight Wallets, have added the cherry on the top.

Many new decentralized exchanges and decentralized exchange protocols are available in the market. Before going any further into it, let us remind ourselves one more time of the difference between the above two.

A basic decentralized exchange (DEX) is an app just a decentralized one (no one having total control), whereas a decentralized exchange protocol is something used by underlying exchanges as a technology stack enabling them to exchange any entity digitally.

ZRX Coin (0x coin), which is an open as well as permission-less protocol, is one such decentralized exchange protocol. This coin aims to provide a decentralized exchange as a part of Ethereum Blockchain.

What is ZRX Coin?

0x coin (ZRX) was founded by Will Warren and Amir Bandeali in October of 2016. Respectively, they are the CEO and CTO of the company. They have added a handful of engineers since the start of ZRX who are working on various major projects like 0x Portal, 0x connect, and the 0x Trade widget.

ZRX coin allows low friction peer-to-peer exchange of ERC20 tokens on the Ethereum smart contract system. It is designed to serve as a free and basic building block used to run interoperability among dApps that also include exchange functionality.

ZRX is different from both centralized and decentralized exchanges, though it is more closely aligned with decentralized ones. This coin handles the issue of cost and speed by developing a standard protocol so that the orders do not have to go back to Blockchain until they are settled. This speeds up the process as well as eliminate unnecessary transaction fees.

The theory behind its name being 0x is that it denotes the term zero exchange. It is also the prefix for hexadecimal numeric constants, including Ethereum addresses.

0x is a public infrastructure backed by a global community of stakeholders. It serves as a platform for developers for building exchange applications and many user-facing applications known as dApps. The most appealing feature of ZRX is its free of charge availability.

In short, 0x coins are ERC20 tokens that are Ethereum’s solution to make cryptocurrency more efficient and cost-effective. They have become so popular over time that more than 500 different cryptocurrencies have issued this class of token.

For better understanding, you can have a quick look at this video:

Key Innovations by ZRX

0x is a modular system whose various components can be upgraded without disrupting active markets or changing underlying technology. This is because governance logic and trading balance access controls are different from business logic that is responsible for executing trades.

Off-Chain Ordering Relay

The crux of 0x’s increasing popularity and adoption is that it focuses on the off-chain ordering delay by using “Relayers”. Transactions run through the network only when the final trade is executed, leaving all other trading commands to off-chain procedures.

It is trustless; i.e., users don’t need to send the transaction to the fund and directly place an order through Ethereum wallet. Thus, there is no counterparty risk and no fee to be paid for the same.

Relayers broadcast the orders through public or private order books. Although, the relayer only facilitates the broadcasting of the order to the network but they cannot execute a trade.

ZRX Token

ZRX token or 0x tokens are used to pay the relayer’s trading fees. Apart from compensating the relayer, ZRX tokens are also used to facilitate decentralized governance on 0x’s platform.

Every stakeholder uses their currency to vote on decisions related to the development of Blockchains  and upgrades can take place without disrupting the entire network. In a way, everyone has to contribute to the protocol and improvements of the underlying technology in the proportion of the amount owed.

0x’s OTC

0x OTC is a decentralized application that facilitates the trustless over-the-counter trading of Ethereum-based tokens. It is a consumer-facing product, which enables peers to exchange Ethereum tokens without the use of a relayer; thus, making it extremely cost-efficient. They just need to be connected with the counterparty and orders are relayed via Blockchain.

0x’s Shared Infrastructure

0x’s protocol is an application agnostic and smart contracts are accessible publicly. This allows many developers to build on 0x if they want to create an exchange function for their own token on the platform.

ZRX protocol serves as a plug-in for other dApps by allowing interoperability and, thus, creating a “shared infrastructure for a variety of applications.” Several crypto projects are already being built on this platform; these include Blocknet, Chronobank, and Augur.  

ZRX’s Coin Performance and Growth So Far

Ox’s token launch was on August 15, 2017 and successfully raised $24 million worth of ether. Its token initially sold for $0.048. The coin has experienced a recent increase in price; its price reached $0.97 in July 2018 with the news of it being listed on Coinbase.

As per CryptoCompare, the 0x coin has a market cap of 762.30 million, currently making it stand on 25th in market-cap ranking. The total supply of ZRX coin is 1 billion; 50% has already been made available with the issuance of its first ICO in August last year.  It started with a high of $0.50 but slowly fell to its all-time low of $0.20 by mid-November that year.

Just like the whole market, 0x coins made its bull run and saw of all-time peak of $2.50 on January 13, 2018. At the time of writing, it sits tight at around $0.76 as per Coingecko.

Coinbase’s recent listing of 0x coins has certainly created a buzz about the coin. The whole ZRX project has seen many recent developments and is catching the eyes of many businesses.

ByteCoin and Zcash have been the recent contenders of the 0x coin. Kucoin has also listed 0x protocol,which will assist digital entrepreneurs globally.

How to Buy the 0x Coin and Store Them?

There are many decentralized as well as centralized exchanges that are selling ZRX coins. Some of the major exchanges are Binance, Bittrex, OKEx, and Liqui.

The maximum trading volume of 0x comes from Binance or Poloniex in the form of Ethereum or Bitcoin. Recently in July 2018, Coinbase and Kucoin, two leading exchange platforms, also listed ZRX.

As stated previously, the 0x coin is an ERC20 token, so many wallets like Ledger Nano S, Jaxx, Coinomi, and MyEtherWallet support 0x just like other ERC20 tokens. You can use Exodus too for the same if you are looking for a software wallet.

0x Protocol Use Case

DApps that require exchange functionality use the 0x protocol as a pluggable building block. This has enabled them to serve in various sectors like prediction markets, fund management, decentralized loans as well as decentralized governance.

Using the 0x protocol to do wallet-to-wallet transactions directly is another game-changing application. Users now do not need to  transfer their tokens to centralized exchanges for verifications first. Currently, MetaMask and Ledger Nano S support this functionality.

Upcoming Projects:

0x has recently released an updated roadmap, detailing three major phases:

  • Project 1: Token Curated Registry

0x will transition their Token Registry contract to one that  is community managed. This transition will enable developers to build a low stakes crypto economic system.

  • Project 2: Community Veto Power

The company needs to verify the token voting scheme in order to shift governance. To empower companies with this facility, 0x is planning to launch a system that allows upgraded proposals to be submitted by a 0x team, which can be vetoed by ZRX shareholders.

To Sum Up

With its amazing protocol, ZRX combines the strengths of centralized as well as decentralized exchanges. Off-chain order relays have resulted in cost savings, and on-chain transactions settlements are making it possible for transactions to be cleared once both parties hold up to their end of the bargain. Both the processes are managed via smart contracts, thus making them absolutely secure.

Currently, the 0x project is backed by many major cryptocurrency investors like Blockchain Capital, Polychain Capital, Fintech Blockchain Group, and many others. It shows many emerging businesses and investors are keeping keen interest on the market.

The ZRX coin is the top pick for many users currently as its protocol practically allows the exchange of any ERC20 tokens, which run on Ethereum. As the list is growing extensively, the demand to buy, sell, and trade is also increasing regularly.

One thing to keep in mind is that the ZRX coin does not depend on any single exchange, but it benefits from access to the entire liquidity pool. The network effect is strong for both those creating and using exchanges and obviously the investors of ZRX.

Versatility and availability have made many dApps and relayers use 0x protocol. Obviously, the 0x coin has picked up the market and, as per various ZRX reviews, the coins will be worth much more in the near future.