0x serves as an infrastructure protocol enabling users to effortlessly trade ERC20 tokens and other assets across various blockchains, such as Ethereum, without the need for centralized middlemen. It offers a decentralized exchange protocol.
This functionality is achieved through a suite of open-source, publicly accessible smart contracts that come together to create a versatile, low-friction trading protocol. Developers can seamlessly integrate it into their projects.
Numerous companies building web3 applications, like wallets, decentralized exchanges, and portfolio trackers, rely on this protocol. It's a tool used by hundreds of developers for their initiatives, having facilitated over $200 billion in trading since its launch. You can track its performance using its dedicated explorer at https://explorer.0x.org/.
At the core of the protocol lies the ZRX, an ERC20 governance token. Holders of ZRX have a say in protocol governance, allowing them to influence protocol modifications and manage the community treasury.
Who Founded 0x?
0x was established in 2016 by Will Warren and Amir Bandeali. They remain actively involved, with Warren acting as the CEO and Bandeali taking the role of CTO.
The platform came into being following a successful initial coin offering (ICO) in 2017, which raised $24 million. It received backing from major investment entities like Polychain Capital, Pantera Capital, and FBG Capital.
Before the ICO, Warren held various research positions and served as a technical advisor for Basic Attention Token (BAT). Bandeali earned a BSc in Finance from the University of Illinois and worked in multiple trading roles before co-founding 0x.
The team now includes over 30 members, comprising engineers, researchers, and designers dedicated to maintaining and improving the platform.
What Sets 0x Apart?
Unlike most other Ethereum-based decentralized exchange protocols, 0x supports both fungible (ERC20) and non-fungible (ERC-721) tokens. This capability allows for the seamless trading of a diverse array of assets, enabling users to buy, sell, and swap the majority of Ethereum-based assets across numerous apps.
The 0x protocol can cater to various use cases, including digital goods marketplaces similar to eBay, over-the-counter trading desks, and as an exchange feature within DeFi protocols and decentralized exchanges.
While 0x is excellent for constructing versatile exchange solutions, it can also be integrated into platforms where trading is a secondary function, such as in-game transactions and portfolio management systems.
For liquidity takers on the 0x protocol, fees are paid in ZRX tokens to incentivize market makers (relayers). Additionally, users pay a protocol fee in Ether (ETH) to cover the gas costs of transactions. Being open-source, 0x doesn't earn from these fees but is supported by ZRX tokens allocated for team and developer incentives, along with its initial ICO funds.
How Many 0x (ZRX) Tokens Are Available?
Similar to many other digital currencies, ZRX has a capped supply that won't exceed 1 billion tokens. Currently, about 75% of this total supply is in circulation, with a small portion reserved for staking rewards.
Unlike other protocols, 0x hasn't publicly detailed its token emission rate, making it challenging to predict when the circulating supply will reach full dilution. However, with 50% of the tokens released during its launch in August 2017 and 75% available by October 2020, full dilution is likely to occur in the early 2020s.
An early blog post by 0x CEO Will Warren noted that half of the ZRX token supply was sold during the 2017 ICO. Meanwhile, 15% each is allocated to the core development organization and an external project development fund, 10% is reserved for the founding team with a four-year vesting schedule and one-year cliff, and the last 10% is set aside for early supporters and advisors.
How is the 0x Network Secured?
0x is built on the Ethereum blockchain, benefiting from the security provided by Ethereum’s extensive network of miners and nodes.
The smart contracts underpinning the protocol have undergone audits, with version 3 being reviewed by multiple external firms, including ConsenSys Diligence. These audits looked for any potential vulnerabilities or backdoors, and no major issues were discovered.
However, a flaw was identified in version 2.0 of the smart contract, which the 0x team promptly patched. This vulnerability was found by an independent researcher and was not exploited. 0x maintains a robust bug bounty program to identify and address any security concerns before they can be misused.
Where Can You Purchase 0x (ZRX)?
ZRX is available for trading on more than 200 exchanges, with popular platforms including Coinbase Pro, Binance, and BitMax. It can be traded against various cryptocurrencies such as Bitcoin (BTC), Tether (USDT), and Ethereum (ETH), as well as several fiat currencies like U.S. dollars (USD), euros (EUR), and South Korean won (KRW).
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