0x: A Better Way to Trade ERC20 Tokens
The beauty of studying a brand new technology like cryptocurrencies and blockchains is that we get to watch it transform from a basic application and morph into something that can connect and improve everything from making smart trades to making smart contracts.
So this is the first of a series of videos that will feature projects that are expanding on the idea of a peer to peer decentralized exchange.
Today let’s discuss 0x. (Zero x)
0x is an open protocol that is a base onto which developers can create exchange-based decentralized applications by using the 0x javascript library.
0x is based on the Ethereum blockchain so it is specifically designed to provide better organization and collaboration for the numerous dApps on Ethereum that deal with Ethereum based tokens.
The protocol itself does not require fees, instead 0x is funded by a distributed group of stakeholders.
It is also designed with off-chain order books with only the final trade settlement being recorded onto the Ethereum blockchain. This allows for reduced friction costs for market makers. Because 0x utilizes off-chain transactions, it requires what are called “Relayers” to host and maintain these off-chain order books. Right now they are working with Ethfinex, Radar Relay and The Ocean as their first developers to fill this role. This is where transaction fees will come into play. Transaction fees are needed to incentivize these relayers who will be able to set their own fees. These fees will need to be competitive and will lead to a more stable price across the board.
So just to summarize, 0x is a free protocol built to bring organization and efficiency to the growing market of exchange dApps on Ethereum’s blockchain.
Additional Reading/Sources:
0x Website
0x Whitepaper
FAQs
0x Roadmap
0x Blog
dApp Portal
CoinMarketCap Info
I have to tell you, I am a traditional finance guy and never really paid much attention to crypto. Your videos on YouTube were, in fact, the primary reason that I became very interested in cryptos. Thank you for your well crafted and easy to digest explanations. Your thoughtful explanations have helped me look good at work when I talk to my clueless traditional finance colleagues. Keep up the good work.
@solidus330 This might be the best compliment I've received so far. I'm very happy to hear that I've helped you out (And helped you look good at work ;) )
I'm actually designing a website right now to provide a place to better organize all of this information. Would you mind if I used this as a testimonial in the future?
Sure. Absolutely you can.
Great info ... I wonder how much traffic Ox can really get into their exchange, their success will depend on it
I think 0x has a lot of potential, I think it's hit a nice bottom, prob a good time buy.
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I'm trading you zero.one crypto tip! in exchange for this Zero-X Crypto Tips vid. Some kind of peer-to-peer exchange to bring you good fortune with the new series. :-)
Bull is a free convention worked to bring association. It is on Ethereum's blockchain. My question is shouldn't something be said about Bitcoin blockchain?
OX is a free protocol built to bring organization. It is on Ethereum's blockchain. My query is what about Bitcoin blockchain?
For now 0x mainly deals with exchanging of ERC20 tokens which are Ethereum platform tokens.
Not exactly but Lightning network could be somewhat similar to this where in Bitcoin can be automatically swapped to any other coin and then application could be built around it.
It's designed for Ethereum's blockchain due to the massive influx of tokens that have been created on Ethereum's blockchain. This is their way of providing a platform so all of these tokens can establish some sort of organization to better appropriate the usage of the blockchain to avoid backlogs of transactions.
It's more like application would be using 0x protocol (apis) to exchange ERC20 tokens. So ideally you can even build your exchange using 0x protocol that can trade Ethereum-based tokens between known counterparties.
Yes, good projects like Augur, Aragon, Melon, Status are using 0x platform. There are several good projects but it's now really crazy to invest in almost each of them.
I'm liking your new posts. Loved the travel posts, but you are hitting another niche with these crypto-blurbs. Nice work!
Thanks @jaredcwillis. I've still got a lot of travel material to share but I keep immersing myself in all this crypto stuff! Thanks for your support, it means a lot :)
Absolutely, been following you from the beginning!
Gracias por el tip Heidi