What is 0x (ZRX)? Everything you need to know about ZRX

The recent emergence of Blockchain has brought the use of cryptocurrency into real life. Cryptocurrency is not just an alternative to the conventional currency, but rather an efficient tool to create a myriad of possibilities. 

One of the practices that are only possible with the presence of cryptocurrency, is Decentralized Finance (DeFi). However, DeFi is currently at a fairly small scale compared to traditional finance; therefore, the lack of liquidity is still a problem. As a result, 0x was developed in order to tackle this issue.

In this article, Coin98 will provide you with detailed information about 0x, including:

• What is 0x and how does it work?
• Information about ZRX's tokenomic and how to get, buy, store ZRX token.
• Is 0x (ZRX) a good investment?

Let's get started!

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What is 0x?

0x is a protocol that provides the infrastructure for DEXs to build on. By choosing 0x, DEX developers can take advantage of the following features: secure smart contracts, unique developer tools, and access to a variety of liquidity pools.

Currently, 0x has appeared on Ethereum, Binance Smart Chain and Polygon, with no intention of stopping the process. Multiple DEXs have joined the 0x’s shared liquidity pool, including Uniswap, Balancer, Mooniswap, Curve, Bancor,...

What is ZRX token?

ZRX is the native token of 0x. Users can stake ZRX to earn a corresponding portion of the liquidity rewards, or use ZRX to participate in governance activities. One ZRX token is relative to one vote.

How does 0x work?

The shared liquidity pool in 0x can benefit a wide range of products:

• DeFi Applications: Decentralized Exchanges (DEXs), derivatives, lending & borrowing,...
• Marketplaces.
• Market making or arbitrage trading bots.
• Over-the-counter (OTC) trading desk.
• Games with ingame assets.
• Digital wallets.
• Portfolio management products.

There are 2 participants that are involved in a trade on 0x: A maker who creates the buy order, and a taker who fills its requirement. I’ll show you how an order is processed afterwards.

First of all, the maker has to go through 2 building blocks of cryptography to officially commit a trade, which are Cryptographic hash function and Digital signature.

• Cryptographic hash function: A function that creates a unique order hash for each trade order. 0x will use this order hash as a unique identifier for that specific order.
• Digital signature: A mathematical scheme to maintain 2 imperial characteristics, which are Authenticity (ensure the order was made by the correct user) and Integrity (ensure the order was not changed in the process).

Second, 0x will follow an “Off-chain relay, On-chain settlement” rule. All orders will be negotiated off-chain, while only the trade settlements will occur on-chain. 

Once an order is created, the maker has to find a suitable taker. If the maker already knows a desired taker, the trade can be done by simply sending that 0x order to the taker through any means of communication: verbal, email, social media platforms,... However, if the maker does not have any willing counter-party yet, the order can be submitted to a 0x relayer. A "relayer" is any entity that helps traders create, find and fill 0x orders.

Once the taker is found, the 0x smart contract will verify the maker’s digital signature. If there is no problem, the assets will be swapped between the 2 participants and the order will be completed.

As mentioned above, 0x uses a shared liquidity pool, or a networked liquidity. This allows 0x orders to be filled by any trader on any relayer. In order to do so, 0x introduces a standard relayer API. Any relayer can use this API to share its liquidity and get access to others’ liquidity easily. Additionally, 0x also implements 0x Mesh, a peer-to-peer network for sharing orders with other users within the 0x ecosystem. 

Detailed information about 0x Coin (ZRX)

ZRX Price Today

Currently, you can track the price of ZRX on Coin98 Markets here: markets.coin98.com/currencies/0x

Coin98 Markets is a website that helps users to get updates of the real-time prices, as well as view the detailed information of a Token Metric from any project. More specifically, you can access the home page or the community page of a project, or filter the coins/tokens by Market Cap, Trading Volume, etc.

ZRX Key Metrics

• Name: 0x.
• Ticker: ZRX.
• Token standard: ERC-20.
• Token type: Governance, Utility.
• Max supply: 1,000,000,000 ZRX.
• Circulating Supply: 847,496,054 ZRX.
• Contract address: 0xe41d2489571d322189246dafa5ebde1f4699f498.

ZRX Token Allocation

ZRX Token Sale

0x completed a token sale on August 16, 2017 after raising $24 million in ETH. The sale ended after the purchase cap was reached in the first 24 hours.

ZRX Token Release Schedule

Up to August 2021, all the vesting tokens of the team have been released.

ZRX Token Use Cases

Currently, ZRX token has two main use cases:

• Governance voting and proposals.
• Staking to receive liquidity rewards.

How to get ZRX Token

Currently, you can get ZRX tokens by trading and providing liquidity on 0x.

How to buy ZRX

 

You can buy ZRX through multiple options:

• DEXs: Uniswap, SushiSwap,...
• CEXs: Huobi, Binance, FTX,...

Or you can use Coin98 Exchange to swap other tokens for ZRX by clicking the Swap button at the end of the article.

Learn more: How to use Coin98 Exchange

How to store ZRX

You can store ZRX token on Coin98 Wallet with these steps:

Step 1: Open Coin98 Wallet & click Receive on the home screen.

Step 2: Search ZRX Token.

Step 3: Click on the correct result, copy the wallet address and send ZRX to this address.

Roadmap & Updates

0x Protocol v2.0 (September 2018): Introduced a new smart contract, started supporting ERC-721 and other token standards, atomic order matching, batch settlement, and a forwarding contract. 

0x Mesh beta (June 2019): Beta test for 0x Mesh.

0x Protocol v3.0 (November 2019): Implemented Staking and Liquidity Bridges.

Team, Investors and Partners

Team

• Will Warren: Co-founder & CEO.
• Amir Bandeali: Co-founder & CEO.

Investors

0x is also invested by multiple popular capitals, namely Blockchain.com Ventures, DeFi Alliance, Coinbase Ventures, Boost VC,...

Partners

Various DEXs have come to a partnership with 0x such as Uniswap, Balancer, Mooniswap, Curve, Bancor,... and many more on BSC and Polygon.

Is 0x (ZRX) a good investment?

I hope that with the aforementioned information, you have understood what 0x is and how 0x works. This article should give you a deep insight into the project, so there is no financial advice. You should Do Your Own Research before conducting any investment, and be responsible for your own fund. 

However, Coin98 will provide some notable points of the project to give you the best overview to make your own decisions.

• In general, the growth of 0x is proportional to the growth of DEXs and their integrated liquidity. In the future, as more liquidity flows into 0x, we can expect the value of the project to increase.
• The decision to expand into multiple blockchains is a smart move from 0x. This will even further improve the capacity of its networked liquidity, and will potentially lead to a multi-chain liquidity hub.
• As an aggregation protocol, the direct competitor of 0x is 1inch. Although 0x was released after 1inch, its attempts to catch up with 1inch were really impressive.

By looking at these statistics, it can be clearly seen that in June 2020, 1inch accounts for most of the market share and trading volume. But over time, 0x started to get its part and the number kept growing more evidently. 

Although 1inch is a solid and top-notch DEX aggregator, 0x is on its way to catch up. This concludes not just the potential of 0x, but also the correct path that 0x is taking. In the long run, 0x can totally be a worthy opponent of 1inch, and it is no surprise if 1inch is surpassed in the future.

Conclusion

As more and more DEXs are growing, the importance of and demand for a liquidity aggregator are increasing at a rapid pace. Projects like 0x really help to solidify the liquidity of DeFi in general, therefore bringing us closer in comparison to the enormous asset markets of CeFi (Centralized Finance).

Although the target to reach that high liquidity still seems impossible at the moment, I believe that with the staggering growth of DeFi, we can expect an unimaginable future.

You’ve been through an article about 0x and the ZRX token. I hope it has helped you in gaining more useful insights into this project and understanding its potential.

If you want to know further about 0x (ZRX), please feel free to leave a comment below and join Coin98 Community for further discussions!