An open standard and common building block, 0x facilitates interoperability between decentralised apps (dApps) that offer the exchange functionality. DApps powered by 0x can generate their own liquidity pools or connect with existing public pools, charging their respective transaction fees.
Launched in 2017, the 0x Ethereum token (ZRX) is a way of paying the relayers’ trading fees and a decentralised form of protocol governance. ZRX holders can contribute to the protocol’s upgrade and improvements proportionally to their ZRX funds.
Market position
Ranked in the top 50 by CoinMarketCap, ZRX has a market cap of near $172M. The ZRX circulating supply is just short of 598M coins with the total fixed supply of 1B.
Asset distribution
In the 0x ICO, the team raised $24M worth of Ether from 12,000 backers. Half of the coins were made available during the launch, 0x as a project kept 15 per cent, another 15 per cent went to the developer fund, the founders retained their 10 per cent and yet another 10 per cent was distributed among the advisors and early adopters. The coins held by the founding team and advisory board will ‘unfreeze’ in the space of four years.
Who’s behind 0x?
The 0x co-founders are Will Warren, CEO, and Amir Bandeali, CTO. Both have solid experience in research and development of smart contracts. The project advisors are engaged with companies like Polychain Capital, Coinbase, and Pantera Capital. Polychain and Pantera are also among the 0x key investors along with Fintech Blockchain Group, Jen Advisors and Blockchain Capital.
The 0x mission
Warren and Bandeali were aiming to build an environment where any asset would be represented as part of the Ethereum blockchain. Anything from in-game coins to metals and fiat currencies. The global tokenisation would lead to myriads of standalone coins and coin types calling for a trustless digital exchange. With 0x, the project co-founders were inspired to tackle the current downsides of decentralised crypto exchanges.
What value does 0x add?
Here’s what 0x aims to fix with decentralised exchanges: their high costs, low performance, illiquidity and incompatibility. Each modification or new order on the book is processed by the blockchain within its block time limitations and transaction costs incurred for each iteration.
0x addresses these shortcomings with a standard protocol. The protocol allows for processing off-chain orders that will get back on chain once they are settled rather than at every transaction. This algorithm boosts execution and removes unwanted transaction fees.
Wrap-up
The unopinionated 0x protocol is a leap forward from decentralised crypto exchanges as they are. Given its free availability and rich functionality, it’s destined to grow quickly and breed more exchange systems employing the Ethereum blockchain. The same applies to the project’s token that justifies investor attention with its increasing market cap and ROIs over 150% since its launch.
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