What's 0x Protocol? Take a look...

0x is an open protocol that has been designed to offer a decentralized exchange as part of the Ethereum. 0x blockchain is made using a protocol that involves Smart contacts Ethereum that allow people around the world to make a decentralized transfer.

The 0x team strongly believes that in the future you will find thousands of Ethereum tokens and that 0x can provide an efficient and reliable way to exchange them. 0x is designed to be different from centralized and decentralized exchanges, offering the best possible combination of features and functionality.

Who created the 0x project (ZRX)?

The co-founders of 0x are Will Warren and Amir Bandeali, the first of whom is the CEO and the second is the CTO. Both focus on research and development of smart contracts. Warren used to conduct research in applied physics at Los Alamos National Laboratory after studying mechanical engineering at UC San Diego.

The 0x project is being funded by Fintech Blockchain Group, Pantera, Polychain Capital, Jen Advisors and Blockchain Capital, showing a diverse range of interests.

What is the purpose of 0x (ZRX)?

When Warren and Bandeali co-founded Project 0x in October 2016, they did so in the hope of a world that would allow the representation of all assets as part of the?Ethereum blockchain.

Ideally, the included assets would have everything from digital game items to stocks, gold and fiat currencies. With so much tokenization, there will be thousands of different types of tokens, requiring a reliable exchange for users.

While the co-founders appreciate the developments of decentralized exchanges , they saw an opportunity for improvement.

With 0x, they hope to address the inefficiencies of decentralized cryptocurrency exchanges, as well as the inability of multiple exchanges to work together.

What does centralized?and?decentralized exchanges do?

Centralized cryptocurrency exchanges are the most common and are executed by a single entity, which in turn offers a point of failure. Users of centralized exchanges deposit funds directly into the exchange, and the exchange becomes responsible for connecting buy and sell orders in real time.

Coinbase is an example of centralized exchange. The great risk of centralized handbags is their vulnerability to hacking or front-running conducted by the administrator.

Decentralized grants have been developed to solve the problem of vulnerability to theft.

With this type of cryptocurrency exchange, users maintain some control over their money. Instead of sending money directly to an entity-controlled wallet, users rely on digital signatures to directly authorize trading orders.?

Unsurprisingly, this means that while centralized exchanges are very fast, decentralized exchanges are slower. Centralized exchanges also tend to have high performance trading as well as advanced tools and are simple to use.

Why use 0x and not a decentralized exchange ?

Project 0x is closer to a decentralized exchange than a centralized one, but still has notable differences.

The project addresses the main problems with decentralized exchanges: they are expensive, slow, itemish and cannot be operated with each other. To operate an order book on the blockchain, each adjustment or new order goes through the blockchain, which means that everything is kept to block times. This also results in network transaction charges on each interaction.

0x solves these two problems by developing a standard protocol. This protocol can be applied to all orders transmitted outside the blockchain.

ZRX - the token of the 0x

Another aspect of Project 0x is the unique 0x Ethereum token?, known as ZRX. This token is how users pay relayers trading fees.

It is also a decentralized form of governance for the 0x protocol upgrade system. Essentially, those who own ZRX have entry into the protocol and improvements to make that is proportional to the amount of ownership.

With the protocol, orders have to go back to the blockchain when they are settled rather than in each transaction. This significantly speeds up the process and eliminates some of the unnecessary transaction fees.

0x (ZRX) - Conclusion

0x seems to be a logical step when it comes to decentralized exchanges, effectively taking care of many of the flaws that these exchanges contain.

Due to its versatility and easy protocol availability, it is not very unlikely that 0x will grow rapidly, providing the basis for other similar exchange systems using the?Ethereum blockchain.

References: https://www.comocomprarcriptomoedas.com/