What is 0x?
0x (also known as District 0x) is an open source, peer to peer, free and decentralized protocol that allows for low friction and trustless exchange of Ethereum-based coins. It offers an ERC20-based native currency called the 0x protocol token (sym. ZRX). Basically, 0x offers a platform and set of protocols to build user-facing DApps on Ethereum network. It also allows for the creation of a number of subject-oriented “districts” that divides DApps into categories of utility. There is a fixed supply of 1,000,000,000 ZRX.
History of 0x
0x was founded by Amir Bandeali and Will Warren in 2016. In Q4 2016, the pre-alpha version of the platform was released and tested on the Ropsten testnet. The project went live in 2017 via a massively popular crowdsale on 15th April 2017, where it could be purchased using ETH. Shortly afterward, the token had obtained a market capitalization of greater than $100 million, reaching over $1 billion in January 2018. It is currently one of the most successful and popular Ethereum tokens to ever be developed.
How 0x Works
0x is basically an Ethereum-based platform which aims to bring standards to the creation of DApps on the Ethereum network. Its goal is to improve the interoperability of Ethereum DApps. Different DApps offer different Smart Contracts and tokens which can freely interact with one another if they are built upon 0x platform. The only condition is that the DApps must conform to ERC20 token development standards.
0x doesn’t offer a new network, rather it utilizes the existing Ethereum blockchain. 0x tokens (ZRX) are used to pay Relayers (think miners) who host and maintain public order books (ledger) for the 0x platform. 0x tokens are also used to maintain a DAO (decentralized autonomous organization) responsible for maintaining stability of 0x’s platform, which was also created using 0x.
0x is not a DApp itself but rather a platform for the standardization of Ethereum DApps. It comes with several advantageous features with the goal of helping Ethereum DApps function more smoothly and integrate seamlessly.
- Tokenized World: 4.2 billion tokens are running on the Ethereum network as of 2017 and this number is expected to grow faster in years ahead. A platform to bring standards to a system on the verge of chaos is highly valuable.
- Token Interoperability: 0x standardizations allow DApps to interact and interoperate easily. With Smart Contractual DApps and DAOs being formed at an increasing rate on the Ethereum platform, 0x has great transformative potential.
- Off-chain Ledger: 0x maintains its records separately from the Ethereum blockchain, which massively reduces the friction and the power required to be a miner/relayer. Only 0x-related transaction data is kept on the blockchain.
- Stability of Ethereum: 0x utilizes the well-tested Ethereum network which allows for security, stability and advanced features like Smart Contracts on its platform.
- Prominent Backers: the 0x team consists of Jeb McCaleb, inventor of eDonkey, Fred Ehsram, founder of Coinbase, and other experts of the field. With this team, the project is in well-experienced hands.
- Native Coin: 0x offers ZRX, they native token of its platform which offers liquidity and is currently traded on leading crypto-exchanges.