0x is a protocol that allows Ethereum-based assets to be exchanged peer-to-peer (P2P). The protocol, developed by 0x Labs, serves as an open standard and basic DeFi building component for any developer that requires exchange capabilities. 0x delivers safe, certified smart contracts, developer tools customized to the 0x ecosystem, a decentralized worldwide P2P order book (0x Mesh), and an API with simple access to aggregated liquidity provided from an increasing number of exchange networks. 0x Labs aims to create a global financial system that is more efficient, transparent, and egalitarian than any system that has existed in the past by combining it with other freely composable DeFi building components. This new infrastructure is designed to be free to use and operate on open-source technology, removing layers of intermediaries and giving users greater financial autonomy.

ZRX is the native governance and staking token for 0x. Owning ZRX allows you to influence how the protocol progresses, and token holders can stake their tokens to gain ETH liquidity incentives.

History

In October 2016, Will Warren and Amir Bandeali co-founded 0x. Their first goal was to establish a standard way to trade any Ethereum token on the blockchain. Their vision was of a world in which every asset, from fiat currencies and equities to gold and digital game goods, could be represented as an Ethereum blockchain token.

Decentralized exchanges increased considerably in terms of usability with this new technology. This is because 0x enabled Ethereum tokens to be traded on any decentralized exchange that used the protocol. Several decentralized exchanges, including Nuo, Zerion, DeFi Saver, and Radar Relay, have been created on top of 0x since its creation.

In an initial coin offering, 0x raised 24 million USD for its ZRX token.

How does it work

0x facilitates the decentralized exchange of tokens through the use of smart contracts, which are free, publicly available, and can be implemented into any decentralized application (dApp). A smart contract is a transaction that performs automatically when certain circumstances are satisfied. Most decentralized exchanges power all of their trades with Ethereum smart contracts, but these are performed directly on the blockchain. This implies that a gas tax is incurred each time an order is placed, updated, cancelled, or filled, which may make the process rather costly.

0x's answer is to employ an off-chain relay with on-chain settlement. This includes a user sending an order to a relayer, which acts as a network bulletin board. The relayer then broadcasts the order off-chain, where it may be filled by any other user who submits their digital signature to the smart contract. 0x also provides point-to-point orders, which allow a user to submit an order that can only be performed by a certain individual. The assets are never in the relayer's possession in any sort of order, and only the actual value transfer occurs on-chain, substantially decreasing both gas fees and network congestion.

Total supply and circulation

ZRX has total supply and maximum supply at 1 billion coins. Currently, there are 847,496,054 coins in circulation.