What exactly is 0x (ZRX) favored by Coinbase?
Recently, cryptocurrency0x（ZRX）attracted a lot of attention. October 11, 20180x (ZRX) is added to Coinbase Pro, becoming the sixth cryptocurrency listed on the exchange and the firstERC-20Token.During the listing process, 0x (ZRX) rose from $0.63 to $1.01, an increase of 60%.After that, ZRX once becameRanked 25th on CoinMarketCapcryptocurrency.
In addition, Coinbase Earn launched last December0x Educational Incentives, plans to distribute 1.6 million ZRX to participants.
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What is 0x (ZRX)?
andWill WarrenandAmir BandealiCo-founded in 2016. It is reported that 0x is an abbreviation for zero exchange (pronounced "zero-ex") and a prefix for hexadecimal numeric constants (including Ethereum addresses).
white paperwhite paper, 0x is an open-source decentralized transaction protocol designed to facilitate token transactions in the Ethereum blockchain, and hopes to become a shared infrastructure for Ethereum Dapps.
Initially, 0x only supports ERC-20 token transactions. Since September 2018, the official launch0x v2.0, 0x can now support ERC-721, ERC-20 token transactions.
As for the cryptocurrency 0x ( ZRX ) launched by Coinbase, according to the white paper, ZRX is a token based on the 0x protocol and has two purposes: market participants pay transaction fees to Relayer (relay party), and update the protocol to the center governance.
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0x's operating rules
According to the white paper, centralized exchanges are prone to security problems, while the experience of decentralized exchanges is not as good as that of centralized exchanges, and any operation involving orders will generate network transaction fees.
to deal with these problems,0x adopts the method of "matching orders off the chain and settling transactions on the chain", all orders are broadcast off-chain, and only successful orders will be executed in the form of smart contracts on the chain.
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Off-chain order matching, on-chain settlement transaction diagram, source: 0x white paper
0x adopts two order modes in the transaction process:
Peer-to-peer order: The order is filled by the buyer and the seller, and the initiated order can be sent to the other party in any form (email, social media, whisper, etc.). 0x has launched an OTC product for consumers.
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Relayer hosts and maintains an off-chain order book in exchange for transaction fees, source: 0x white paper
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0x application scenarios
According to reports, 0x aims to simplify the tokenization of assets, products or commodities. The developers of 0x even claim that it can add network liquidity to any asset or product.
Official WikiIt shows that there are 26 DApps that have used or plan to use 0x, and 19 relay parties that have used or plan to use 0x. Although not all of the listed projects have used 0x, these data also prove that 0x's landing results are a major highlight.
And on December 6, 2018, instant trading tools0x InstantThe official launch has become an important milestone of the 0x project and further promoted the application of 0x.
After 0x Instant is launched, developers and creators can use Instant's open source code to quickly add digital asset trading functions to their applications or websites, and can also earn handling fees according to their own needs (the upper limit of the handling fee setting is 5% ).
According to the official introduction, 0x Instant can automatically match the best price in the 0x network asset pool, and allows users to trade ERC 20 or ERC 721 tokens through MetaMask, Ledger, Trezor or other Ethereum wallets.
0x officially stated that Instant has been used by multiple landing application projects.
In terms of DApp, prediction marketAugur Instant has been integrated, users can quickly purchase Augur tokens REP and participate in market predictions.
andCoinbase WalletandBalanceThe web wallet has integrated Instant to provide users with digital currency purchase services.
In terms of cryptocurrency news and price information websites, cryptocurrency-related companies can use their own traffic to earn commissions. The world's second largest digital currency price information websiteCoinGeckoInstant has been integrated and digital currencies such as ZRX, REP, OMG, DAI, MKR, BAT, REQ and AST have been added.
Non-Fungible Tokens (NFT), the encrypted asset trading platformEmoonthrough withAssetBuyerBy embedding Instant functions in the way of component integration, 0x hopes to provide channels for independent game developers and digital artists to sell digital assets.
existMarket Mad HouseexistMediumPublished articles, games are a huge market, and game participants need permanent game records. 0x currently supports non-fungible tokens ERC-721, which can be used to provide permanent records. 0x CEO Will Warren accepted theGamesBeat interviewThe Times has also said that it is prioritizing video game projects.
andKroger（NYSE : KR）andTarget（NYSE : TGT）Large retailers such as Google are using loyalty points to track customer preferences. The 0x protocol can create permanent loyalty points based on NFTs.
In addition to games and loyalty points, NFTs can also be used to track banking transactions, such as withdrawals. Additionally, NFTs can generate permanent records of legal documents such as insurance policies and contracts.
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Moving forward amid doubts, what is the prospect of 0x (ZRX)?
The cryptocurrency market has never been short of doubts, and 0x and ZRX are also facing pressure from all sides.
according to
according toThe Block reports，0x trackerimage description
ZRX daily & accumulated fees, source: 0x tracker, The Block
Not only the media questioned, in December 2018,Decentralized exchange DDEX announced that it will "fork" the 0x protocol, the new Hydro protocol will not support the ZRX token, citing “the ZRX token creates unnecessary friction.” It is reported that,0x 50% of traffic comes from DDEX, if DDEX finally "forks" successfully, the ZRX and 0x protocols may be greatly affected.
In theory, Relayer can charge users ZRX as a transaction fee, but the reality is thatSome exchanges charge fees based on the spread instead of ZRX. The Block argues that from the start, the data showed a lack of utility for this ZRX feature.
As for the governance usage of ZRX, so far, there is no formal governance function in the 0x protocol. according toOfficial Roadmap, 0x's transition to community governance will be completed in stages, and control will eventually be transferred to ZRX holders. Rating agency standard consensus notes that while Will Warren and Peter Zeitz have recentlyDevcon4 presentationmentioned building a self-sustainable ecosystem through governance, but implementation plans and details are still missing.
0x also faces other technical problems.Market Mad HouseArticlesPointing out that the 0x protocol would be useless in the real world without finding a solution to the blockchain scalability problem.However, 0x ( ZRX ) can be compatible with Ethereum-based solutions to address scalability issues. These solutions include Vitalik Buterin'sandandRaiden network. If these two proposals are ultimately successful, it may drive the price of ZRX up.
Beyond that, it is believed that 0x faces competitive pressure from centralized exchanges, decentralized exchange protocols, and platforms.
At present, large centralized exchanges have prepared and even launched decentralized trading platforms.Bitfinex has launched a hybrid DEX platform Ethfinex，,and,andCoinbase has acquired DEX platform Paradex. However, Paradex,EthfinexBoth use the 0x protocol, which is good news for 0x. But in the long run, centralized exchanges have a large number of users, strong capital,
Decentralized exchange protocols and platforms includeEtherDelta Trading Platform、kyberandLoopring protocolHowever, decentralized exchanges generally have problems such as poor liquidity, insufficient transaction speed, and governance models. Compared to centralized exchanges, there is relatively less pressure from competitors on decentralized exchanges.
official websiteofficial websiteIt shows that the core team consists of 26 people, most of whom have computer-related background and working experience. The advisory team consists of 5 people, mainly CEOs or executives of Coinbase, Polychain, and Pentera.
Although early in the project, there wereInstitutions Question 0x Team’s Lack of Blockchain Experience, but actually the 0x team has been actively advancing the project:
November 17, 2018, Release Toolkit 0x Launch Kit, which is convenient for users to quickly create Relayers.
Launched on December 14, 20180x Ecosystem Accelerator Program (EAP), will provide non-dilutive funding of $10,000 to $100,000 for early-stage projects.
Launched on January 8, 2019Market Maker Program, which aims to provide Maker with educational resources and incentives to provide liquidity and make the market more efficient.
In addition, the project code is updated frequently,CryptomisoandTwitterandFacebookimage description
0x code submission ranking, source:Cryptomiso
references:
references:
Introduction | A Beginner's Guide to 0x
Introduction | 0x Protocol Governance System, Part-1: Roadmap
Opinion | The current state of the 0x protocol
0x: A decentralized exchange protocol based on the Ethereum blockchain
0x Instant: A few lines of code can integrate decentralized trading functions
We chatted with DDEX about why they are forking 0x
Blockchain project "0x": Risk level "C+"｜Standard consensus rating
0x: Decentralized Exchange Protocol | ONETOP Rating
0x Instant can be quickly embedded in the Token trading system｜Standard consensus rating adjustment
What Value does Ox (ZRX) have?
0fees: 0x has seen only ~$3K in ZRX tx fees since creation
0x Protocol — Building Decentralized Exchanges (…and so much more?)
I am Yu Shunsui, the author of Odaily. I am exploring the real blockchain. For communication, please add WeChat: 517018419. Please note your name, company, and position.
