0x Protocol

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0x is an open protocol for decentralized exchange of digital assets on Ethereum blockchain. Founded in 2016 by Will Warren (CEO) and Amir Bandeali (CTO), 0x enables smooth communication for systems or various transacting parties to trade their assets in a peer-to-peer way.

As opposed to centralized cryptocurrency exchanges that are run by a single entity and hold custody of all deposited funds, 0x enables users to directly authorize trading orders and keep more control of their funds. This makes 0x and the entire decentralized exchange model less vulnerable to hacker attacks.

Despite the security advantages, most decentralized exchanges are still slower, more expensive and less liquid than centralized ones – 0x tackles these issues by offering a standard protocol that reduces reliance on blockchain. Instead of every transaction, orders go back to blockchain only when they are already settled. This means significant cut in transaction fees for the system users.

The trading fees in the system are paid in ZRX – a utility token that is also used as a decentralized governance mechanism to vote for the protocol’s upgrade system.

References

1. Official website
2. https://www.investopedia.com/news/what-0x/
3. https://blockonomi.com/0x-guide/