Crypto Asset Overview: 0x Project and the ZRX Token

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Table of Contents

DISCLAIMER This post reflects my personal opinion only; it does not constitute investment advice of any kind.

Overview

Off-chain order relay, On-chain settlement

In a regular decentralized exchange (e.g. EtherDelta), listings and orders are transactions on the Ethereum blockchain. This means GAS costs and waiting for transaction blocks.

0x is a layer-2 protocol running on top of the Ethereum blockchain to help build Decentralized exchanges (DEXs) for ERC20 tokens.

In a 0x-based DEX, orders are transported off the main Ethereum chain by relayers and only value transfers happen on-chain. This reduces GAS costs as less operations are taking place on the Ethereum blockhain.

Relayers are special roles (anyone can set up a node) that help broadcast orders, and they collect a fee (paid in ZRX tokens) each time they help close a trade.

The ZRX token

  • Used to pay for Relayers

  • Used for Governance (holders can vote on changes to the Protocol)

Similar Assets

  • Kyber Network (KNC)

  • Loopring (LRC)

  • AirSwap (AST)

Notes

  • 0x works on the Ethereum Blockchain only.

References

Dialogue & Discussion