What is 0x (ZRX)?

0x (ZRX) is an ERC-20 token that powers the 0x protocol on Ethereum. The protocol aims to make trading Ethereum tokens from your wallet as cheap as possible. Meaning that 0x’s protocol and token are two distinct aspects of the overall project (ZRX). Decentralizing exchanges are made possible by the combination of these two systems.

Who Created 0x (ZRX)?

In 2016, Will Warren and Amir Bandeali co-founded ZeroEx Inc, a firm that developed the 0x protocol. 0x was built to facilitate the interoperability of decentralized applications (DApps) that include exchange functions (DEX).

ZeroEx Inc. held an initial public offering (IPO) of ZRX tokens on July 14, 2017. The company raised $24 million in Ethereum (ETH). Venture capital firms such as Pantera Capital, Polychain Capital, and Blockchain Capital have supported the project.

Augur co-founder Joey Krug, Scalar Capital co-founder Linda Xie, and Coinbase co-founder Fred Ehrsam serve as advisors to the company.

How Does 0x (ZRX) Work?

With the 0x protocol, Ethereum tokens can be tokenized, purchased, and sold. 0x makes it possible for Ethereum’s brilliant contract architecture to handle the execution of operations in this fashion. Every trading operation involves users in two categories: the makers and the takers.

Orders placed on the exchange by makers are matched with orders placed by takers. A relayer adds cryptographically signed requests to the order book in exchange for a transaction fee, which users send to complete trades.

These orders include the exchange token, target price, and expiration date. That said, it is essential to emphasize that relayers do not take custody of assets in any exchange because transactions occur on the blockchain.

A taker’s demand is matched with a maker’s order via 0x, which employs Ethereum smart contracts to transfer tokens between the customers. These smart contracts are open source, accessible, and can be used by any app.

As a result, DApps can use public liquidity funds or construct their liquidity pool and collect transaction fees on the ensuing volume. In addition to boosting the security of these DApps, this also increases their economic potential.

Is 0x (ZRX) a Good Investment?

The 0x protocol may be a good investment for individuals searching for a substitute for traditional centralized exchange systems. The 0x protocol is already supported by several wallets, allowing users to buy and sell crypto inside their own ecosystem. It is possible to store 0x (ZRX) on hardware wallets like the Ledger Nano S to make them easier to trade and more secure to hold.

Furthermore, many crypto enthusiasts believe that decentralized exchanges will play an essential role in providing access to a wide range of crypto assets in the future. In that case, you might consider purchasing ZRX and adding it to your portfolio. Kraken is an excellent exchange platform for purchasing ZRX if you want to invest in this asset.