0x (ZRX) was founded in 2017 with the vision to make cryptocurrency trading more efficient. It is a decentralized open protocol that enables functionalities for peer-to-peer exchange of all types of assets on the Ethereum blockchain. It represents an open standard for building decentralized exchanges, DEX, on top, letting developers easily build scalable, secure, and efficient marketplaces for tokens, crypto assets, and even more.
The protocol aims to bring efficiency in digital asset swapping through blockchain, maintaining low costs and high liquidity. The ZRX token is right at the center of all this and provides a host of functionalities, including governance, staking, and liquidity provision incentives.
0x was by Will Warren and Amir Bandeali. Warren served as the CEO and a co-founder; he wanted to see the creation of a protocol for the standardization and democratization of digital asset trading. Bandeali being the co-founder and the CTO, he had come from trading and blockchain to help design 0x’s architecture and scalability. The ultimate goal, though, was to work toward a financially decentralized system wherein exchange of assets would be frictionless, trustless, and for everyone.
0x has a modular architecture with off-chain order relay and on-chain settlement that allows a fast and cost-efficient trading protocol. Traders can broadcast their orders off-chain, which is cheaper in gas and does not compromise throughput. Trades, once matched, are settled on the Ethereum blockchain in a secure and trustless manner. The 0x API is a powerful tool that aggregates liquidity from a number of sources to provide the best prices and deeper liquidity pools for developers. The ZRX token is used for governance and staking, enabling holders to take part in protocol upgrades and receive rewards.
0x relies on Ethereum’s blockchain for processing trades, ensuring decentralized and secure operations. ZRX holders can stake their tokens and earn rewards by contributing to the liquidity of the network. 0x’s scalability is directly based on Ethereum’s Layer 1 and Layer 2 scaling solutions. The integration of Layer 2 solutions, such as Polygon, boosts 0x to achieve notably higher transactions per second (TPS) than the base capacity of Ethereum, which is 15-30 transactions per second (TPS), and can process up to 65,000 transactions per second (TPS) under optimal conditions through Polygon.
0x is integrated into Coinbase Wallet for decentralized trading, enabling users to interact seamlessly with any DEX. The integration with Coinbase introduces its users to decentralized trading through an intuitive interface that allows interaction with a vast pool of trading pairs directly from their wallet. With the integration of 0x into Polygon, scalability has increased and transaction costs have decreased. The high throughput and low fees on Polygon make the 0x protocol more accessible to both developers and traders, attracting more users and enabling high-frequency trading.
Matcha, a decentralized exchange aggregator powered by 0x, leverages deep liquidity access across many DEXs for optimized pricing, ensuring traders receive the best rates while providing better liquidity to the wider ecosystem. The integration with Binance Smart Chain (BSC) marks a major expansion step for 0x towards cross-chain trading, expanding its market reach and providing users with access to more varied assets and trading possibilities across different blockchain networks.
Recent developments include the 0x API now aggregating liquidity on Ethereum, Polygon, and BSC, smoothly exposing developers to multi-chains, and ensuring better depth and trade executions for users across different blockchains. 0x has integrated support for NFTs, allowing for seamless purchasing, selling, and swapping of digital collectibles on its protocol, positioning it at the forefront of the emerging NFT market for creators and collectors alike. Enhancements in the staking model have made ZRX more attractive for token holders, with participants earning better rewards by contributing liquidity, driving more activity within the ecosystem.
Integrations with Layer-2 networks like Polygon and Optimism greatly reduce gas fees and accelerate transaction speeds, making 0x a more viable and practical choice for both active traders and developers, addressing scalability issues left by the Layer-1 network. With active participation of ZRX token holders in the governance of the protocol through voting for updates and initiatives, decisions concerning the future of 0x are decentralized. 0x continues exploring cross-chain compatibilities, including with Solana and Avalanche blockchains, widening its reach for cross-chain asset transfers and increasing the value of its protocol further.
With these strategic partnerships and continuous developments, 0x solidifies its position as one of the leading protocols for decentralized trading, offering scalability, liquidity, and compatibility to both users and developers.
By December 23, 2024, 0x’s native token, ZRX, trades around $0.48, with a market capitalization of $400 million, making it still relevant and a critical player in decentralized trading.
ZRX reached its all-time high (ATH) of $2.53 on January 9, 2018, and its all-time low (ATL) of $0.104 was on August 16, 2017. Factors affecting the price include DeFi growth, where increased adoption of decentralized finance drives demand for the 0x protocol and the ZRX token. Expanded API functionality makes it a hub for developers and market makers on the protocol. The integration of NFT trading opens up new use cases and increases user activity.
0x positions itself as a foundational protocol for the decentralized exchange of assets, guaranteeing scalability, security, and flexibility for both developers and traders. The continuous drive for innovation, strategic partnerships, and ever-expanding ecosystem secure its relevance to be a key player in the fast-growing DeFi and NFT markets. With a focus on efficiency, liquidity, and governance, 0x is driving the future of decentralized trading.
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FAQs
Q1. What is 0x used for?
- A: 0x is a decentralized protocol meant for trading digital assets and powering DEXs and marketplaces.
Q2. What are the benefits of ZRX tokens?
- A: ZRX tokens allow for governance, staking rewards, and incentivize liquidity providers within the 0x ecosystem.
Q3. What makes 0x unique?
- A: The scalable and cost-efficient trading experience was achieved by marrying the off-chain relay of orders with on-chain settlement.
Q4. What is 0x API?
- A: 0x API aggregates liquidity from a number of sources; for developers, this would mean deep liquidity and optimized pricing.