Crypto Asset Overview: 0x Project and the ZRX Token
Last updated: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.