What is 0x?
This blog post will cover:
- What is 0x?
- Where did 0x come from?
- What are the advantages of 0x?
- What are the disadvantages of 0x?
- How to buy 0x on SimpleSwap?
What is 0x?
0x is a protocol that facilitates the exchange of ERC20 tokens. Anyone can use 0x to work with a decentralized exchange.
The protocol allows you to relay ERC20 tokens between users in a safe and fast mode using Ethereum smart contracts. Ultimately, all assets, including fiat, goods, stocks, could potentially be represented as a token. The purpose of the protocol is to use any Ethereum tokens effectively.
ZRX has two main functions:
- Management - ZRX will allow holders to vote on protocol changes.
- Relay Fee - Relays will arrange over-the-counter orders and related engines to match orders from manufacturers and buyers (users who wish to trade ERC20 tokens). Manufacturers and interlocutors who use this service will pay a fee for using the ZRX relay.
Where did 0x come from?
Two well-known crypto enthusiasts Amir Bandeali and Will Warren united their efforts to create the 0x protocol and, as a consequence, the ZRX cryptocurrency.
The work on the ZRX cryptocurrency project was launched in 2016 when Bandeali and Warren put together a team of professional programmers who wanted to develop and popularize cryptotechnologies. Almost at the same time, the first based on 0x technology solutions smart contracts were launched. At that time they worked in test mode.
Since 2017, the development team has expanded. It was marked by the release of several test versions of smart contacts and the implementation of improvements in the 0x work. In the summer of 2017, the creators of this crypto project organized the first ICO. Thanks to this stride, they managed to raise about $24 million and finance the next steps to promote and refine their brainchild.
What are the advantages of 0x?
- Network speed
An exchange transaction takes place in a chain of blocks, and all other actions with the exchange are going on outside the network. Firstly, it accelerates the transaction. Secondly, it does not overload the network.
- The absence of a single center at 0x
Therefore, the ZRX system cannot be hacked.
- Cooperation with successful projects
0x has already been tested and has shown good results in various projects on the blockchain such as Status or Aragon.
- Public availability of ZRX
Its source code is free to access and it does not require permissions to use it.
- Integration with smart contracts
It is adapted with smart contracts, so transactions can be executed programmatically.
What are the disadvantages of 0x?
- Legal issues
The specificity of the USA legal bases can create problems in terms of the further advancement of the protocol and its cryptocurrency ZRX. This is due to the fact that a number of cryptocurrencies based on ERC20 has the status of securities.
- 0x protocol works only with ERC20 digital coins
If another protocol can overtake Ethereum in its popularity, then the future growth prospects of the ZRX token will turn out to be deplorable.
How to buy 0x on SimpleSwap?
Let’s say you want to buy 0x. What should you do? We suggest you go to the SimpleSwap homepage and follow the instructions below:
- Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
- Select ZRX in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
- Enter the Recipient’s Address. 0x will be sent to this address. Be careful and make sure you use the correct address.
- Check all the information you have entered. If everything is correct click the Exchange button.
- You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.
This is everything you need to know to buy ZRX.