0x Protocol Review
When investing in virtual currency, you need to do your research. We provide you with reviews of each world top cryptocurrency out there, so that you can find the best crypto coins to invest in for you. This is a review of 0x Protocol.
Origin & Background
The majority of all decentralized exchanges use smart contracts that run on the Ethereum blockchain. When you deposit cryptocurrencies to an exchange, place an order or fill an order, there will be a transaction noted on the blockchain. Accordingly, decentralized exchanges are excellent from a security perspective. However, they are not as proficient when it comes to keeping down operating costs and when it comes to speed. At least not when you compare them to ordinary “centralized exchanges”.
However, in the 0x protocol, orders are transported and confirmed off-chain, massively reducing gas costs and eliminating “blockchain bloat”. Thus, transactions only run through the Ethereum network when a trade finalizes, allowing users to reduce the gas fees associated with trading operations. Relayers help broadcast orders and collect a fee in ZRX each time they facilitate a trade. Relayers can also be built by anyone.
0x believes having a decentralized exchange is critical in developing the cryptocurrency ecosystem for many different reasons. These reasons include:
Stable Tokens – New financial ideas such as stable coins require efficient, liquid markets to succeed. 0x Protocol hopes to facilitate the underlying economic mechanisms that allow these tokens to remain stable.
Decentralized Loans – Efficient lending needs liquid markets where investors can buy and sell loans. 0x Protocol enables an ecosystem of lenders to self-organize and efficiently determine market prices for all outstanding loans.
Fund Management – Decentralized fund management limits fund managers to investing in pre-agreed upon asset classes. Embedding 0x Protocol into fund management smart contracts makes it possible for them to adhere to these pre-defined limits.
Pros & Cons
We have not identified any obvious pros or cons with the 0x Protocol. But that doesn’t mean that there are none. We urge you to do your own independent research before investing in any cryptocurrency.
If you have concluded that this is the coin for you, congratulations! Buy Ox Protocol here.