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About 0x Protocol
- 0x is an infrastructure protocol for decentralized exchange, allowing users to trade ERC20 tokens and other assets on various blockchains without centralized intermediaries.
- The protocol uses open-source, publicly auditable smart contracts to facilitate low-friction trading.
- It has facilitated over $200B in trading volume since its inception.
- The protocol is powered by the ERC20 governance token ZRX, which allows holders to participate in protocol governance.
Founders and History
- Founded in 2016 by Will Warren and Amir Bandeali.
- Launched following a successful ICO in 2017, raising $24
Introducing the 0x Protocol: A Revolutionary Decentralized Exchange Framework
Introducing 0x (ZRX): A Decentralized Exchange Protocol
0x is an infrastructure protocol that facilitates seamless trading of ERC20 tokens and diverse assets across multiple blockchains, including Ethereum, while eliminating the need for centralized intermediaries, thereby enabling decentralized exchange.
0x accomplishes decentralized exchange functionality through a suite of open-source, publicly auditable smart contracts that synergistically operate to create a flexible, low-friction trading protocol, seamlessly integrable into various products by developers.
The protocol is leveraged by companies developing web3 applications, including wallets, decentralized exchanges (DEXes), portfolio trackers, and others. Hundreds of developers have utilized it for their projects. Since its inception, the protocol has facilitated a staggering $200 billion in trading volume. Its usage can be tracked on its dedicated explorer:
https://explorer.0x.org/
.
The protocol is fueled by an ERC20 governance token, ZRX, which empowers its holders to participate in protocol governance, thereby granting them direct influence over protocol modifications and the management of its community treasury.
The Visionaries Behind 0x: Meet the Founders
Founded in 2016 by visionary entrepreneurs Will Warren and Amir Bandeali, 0x has continued to thrive under their steadfast leadership. Today, Warren helms the platform as CEO, while Bandeali spearheads its technical vision as CTO.
The platform was successfully launched in the aftermath of a highly acclaimed initial coin offering (ICO) in 2017, which garnered a substantial $24 million in funding, backed by esteemed investment firms, notably Polychain Capital, Pantera Capital, and FBG Capital.
Prior to the sell-out initial coin offering (ICO), Warren accumulated a wealth of experience in various research roles and briefly served as a technical advisor to Basic Attention Token (BAT). Meanwhile, Bandeali, a University of Illinois alumnus with a Bachelor of Science degree in Finance, leveraged his expertise garnered from holding several trading positions to co-found 0x.
The team has grown to comprise over 30 talented individuals, including skilled engineers, researchers, and innovative designers, who collaborate to continually refine and optimize the platform, ensuring seamless operation.
Unveiling the Unparalleled Attributes of 0x
Distinguishing itself from other Ethereum decentralized exchange protocols, 0x uniquely supports both fungible (ERC20) and non-fungible (ERC-723) tokens. This distinctive feature enables permissionless trading of a diverse array of assets, providing holders with a seamless way to buy, sell, and exchange the vast majority of Ethereum assets across over a dozen different applications.
The 0x protocol boasts a versatile applicability, lending itself to a diverse array of use cases, including, but not limited to, eBay-esque marketplaces for digital goods and services, over-the-counter (OTC) trading desks, exchange functionality for decentralized finance (DeFi) protocols, and traditional decentralized exchanges.
While 0x is well-suited for creating highly adaptable exchange products, its versatility also lends itself to integration into a broader range of applications, such as in-game purchase systems and portfolio management platforms, where asset exchange is a complementary feature.
On the 0x protocol, liquidity takers are required to pay a fee in the form of ZRX tokens, which serves as an incentive for market makers (relayers) to provide liquidity. Additionally, users are obligated to pay a protocol fee in Ether (ETH), which covers the gas costs incurred during transaction execution. As an open-source protocol, 0x does not retain any portion of this revenue, instead relying on ZRX tokens allocated as team and developer incentives, supplemented by its initial ICO funding.
What Is the Circulating Supply of 0x (ZRX) Coins?
Similar to numerous digital assets, the ZRX token boasts a capped maximum supply, permanently fixed at 1 billion ZRX, thereby ensuring a controlled and predictable ecosystem. Currently, approximately three-quarters of this predetermined supply is already in circulation, with only a modest fraction reserved for staking rewards.
Notably, 0x has deviated from the norm by refraining from publicly disclosing the emission rate for new ZRX tokens, thereby rendering it challenging to predict the timeframe for the circulating supply to reach full dilution. However, with 50% of the circulating supply released at the token’s inception in August 2017 and 75% of the supply released as of October 2020, it is likely that full dilution will be attained in the early 2020s.
According to an early blog post by 0x CEO Will Warren, a significant portion of the total ZRX token supply, precisely half, was allocated to investors during the 2017 Initial Coin Offering (ICO). Meanwhile, 15% each was reserved for the 0x core development organization and the external project development fund. Furthermore, 10% was set aside for the founding team, subject to a four-year vesting schedule with a one-year cliff, while the remaining 10% was retained for early backers and advisors.
The Security Paradigm of the 0x Network
0x is built atop the Ethereum blockchain, thereby leveraging the collective security afforded by the vast Ethereum miner and node network, which provides robust protection against potential attacks.
Regarding the underlying smart contracts, the third iteration of the protocol has undergone rigorous audits by multiple third-party firms, which scrutinized the code to identify potential vulnerabilities, backdoors, and redundant functions. Notably, ConsenSys Diligence was among the auditing entities, and fortunately, no critical issues were detected.
Notwithstanding, a vulnerability was discovered in the v2.0 smart contract, which was subsequently remedied by the 0x core team. This vulnerability was identified by an independent researcher and, fortunately, remained unexploited. 0x persists in maintaining a generous bug bounty program, thereby facilitating the detection and rectification of any potential issues prior to their potential exploitation.
Where to Acquire 0x (ZRX): A Comprehensive Guide
ZRX is presently listed on an impressive array of over 200 exchange platforms, with prominent ones being Coinbase Pro, Binance, and BitMax. It can be traded against a diverse range of cryptocurrencies, including Bitcoin (BTC), Tether (USDT), and Ethereum (ETH), as well as several fiat currencies, such as U.S. dollars (USD), euros (EUR), and South Korean won (KRW).
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Associated Resources
Discover Uniswap (UNI), a cutting-edge alternative to 0x, revolutionizing decentralized exchanges.
Discover the simplicity of Uniswap: A Beginner’s Guide to Getting Started.
Discover Ferrum Network (FRM), a pioneering platform designed to facilitate the creation of blockchain-based financial products.(https://coinmarketcap.com/currencies/ferrum-network/)
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