7 min read
If you’ve heard about the 0x project and you don’t know what it is, we explain it easily. The project 0x is a protocol created to make possible the operation of decentralized cryptocurrency exchanges.
This project is a tool designed to make possible the operation through smart contracts of exchanges that work in a decentralized way. All this while programs run on Ethereum blockchain technology.
History of 0x
The start of project 0x dates back to end of year 2016 when co-founders Will Warren and Amir Bandeali stepped in to start the project. Both creators brought the project to light with the aim of creating a platform with the ability to manage exchanges in a decentralized and secure way. The platform not only had to be secure, but also had to have properties such as scalability and it had to be able to easily adapt to the changes that the market demands in the future. Finally, in August 2017 the 0x token was released to the market.
The team that created 0x was not only formed by two co-founders, but also by blockchain and software engineers, graphic designers and business strategists. Project developers advocated tokenization, meaning that any asset can be represented as a token in the Ethereum blockchain.
To finance a project of this magnitude, the team launched an ICO (Initial Coin Offering). This took place in 2018 and was one of the most important, since managed to raise more than 20 million dollars in Ethers. In this way the project was able to move forward.
Amir Bandeali and Will Warren, co-founders of 0x.
How does 0x work (ZRX)?
This protocol allows any user or entity to easily provide a token exchange combination. In this way many developers build their own decentralized exchanges and thus avoid centralized exchanges.
To achieve these exchanges 0x project is based on smart contracts, solution for decentralized application development. Smart contracts are in charge of processing each operation in 0x so they would be the brains of the project.
The functioning of 0x merges two important variables to the system such as connected liquidity and easy and flexible integration.
- With connected liquidity we mean a layer that allows businesses to enter shared groups of digital assets. This lowers the barriers for businesses and their businesses.
- The integration is easy and flexible as it allows to add to the experience of other products the functionality of exchange platform.
At present, the project consists of a total of 10 intelligent contracts which have a separate specific function.
On the other hand, the performance of 0x also depends on the Relayers. These are computers that run the 0x software. By joining them, relayers create the autonomous network and at the same time manage the order book and the off chain network.
They also have more features such as allowing users to work with the order book through DApps. Basically, the network depends on them and they guarantee the security of those who access the network thanks to the handling of information in cryptographic form.
Users pay Relayers transaction fees with ZRX tokens. Those with ZRX also have protocol inputs and proportional improvements according to the amount they own.
In addition, this token has two main functions.
- The first is to improve the liquidity of the network through a process of economic feedback
- And the second to help manage decentralised governance.
Now that you know the operation of the project we will see the process to make a decentralized exchange.
First a user requests an exchange through an order. The order specifies the change you want with the time it expires and signing the order with your private key. The order is broadcast on the network for processing by relayers.
If the other party accepts the order, then the contract is approved. The counterparty must sign their agreement with the transaction and ready. The contract authenticates the signatures and verifies that the order has not expired. If all goes well the transfer is done and the tokens are sent between the two users.
If you want to store your ZRX you will need a place to store them. That place is a wallet where you can store your digital coins securely.
Among the options to store this token you can use numerous exchanges that contain built-in wallets for 0x cryptocurrencies, however, they are not the most recommended option in terms of security.
On the other hand, with the software purses you will have more peace of mind, as your assets are totally under your control. A good storage option is Argent. This wallet provides security and also has a simple interface which makes it the perfect candidate to start in this world efficiently and reliably. It is one of the best options to store your 0x tokens.
Another option is the wallet Exodus. This wallet has a storage of more than 700 tokens and a design very easy to understand.
If you prefer a step further in security you can try a walllet hardware like TREZOR, as it is also compatible with 0x.
Price of 0x
Like many tokens, ZRX has a maximum supply that cannot exceed. This supply is 1 billion ZRX. Currently more than three quarters are in circulation, in turn, a small part is locked for rewards.
This token has had many ups and downs and fluctuations in its price. With peaks like the beginning of 2018 when its value reached 2.5 USD, currently stands at a value between $0.33 and $0.35. Its worst drop was in March 2020 when its price fell to just $0.12.
Where to buy 0x?
If you want to know how to buy ZRX or where to do it, of course we will recommend you to buy ZRX at Bitnovo. And this is not simply because we are inside the brand blog, but Bitnovo is really a fast and safe way to do it.
Our goal as a company is to make a person who just entered the crypto world able to buy any cryptocurrency in a matter of minutes, without experiencing the problems that most crypto exchanges have.