Though the fledgling crypto economy is wrapped in a shroud of different criticisms – for instance, that crypto coins are only suitable for speculation and detrimental for the environment – cryptocurrencies like Bitcoin, Ethereum, and others of their ilk have, at least, one good reason to exist – DeFi aka decentralized finance.
DeFi has no formal definition, but it is generally built on the top of blockchain technology to enable borrowing and lending transactions using auction markets. Decentralized finance systems also allow users to trade in non-traditional derivatives and swap one crypto asset for another.
Decentralized finance platforms are gaining momentum because they offer more beneficial profit opportunities than conventional banks. This is so because blockchain removes the need for financial intermediaries with their elevated commissions, regulations, and inadequate interest rates.
DeFi can be seen as an open-source approach to financial operations. DeFi relies on smart contracts hosted on public blockchain technologies such as Ethereum. Blockchain here serves as the infrastructure to organize and control various financial services such as loans, savings, insurance, trading, and investments using cryptocurrencies as collateral.
Why Does DeFi Matter?
Decentralized finance is among the hottest cryptocurrency trends because it offers way more lucrative benefits than classic banks. The most prominent project in the DeFi scene is the 0x protocol, a decentralized exchange (DEX) for trading ERC20 tokens that directly connects buyers with sellers.
What is ZRX Cryptocurrency?
Emerged just in 2017, ZRX is quite a new player in the crypto market, yet it indeed is enjoying burgeoning growth. You know, ZRX price surged against the US dollar in February, jumping from $0.74 to $1.92 in less than one month – a covetable performance.
ZRX is the governance and staking token that fuels the open-source 0x protocol – a decentralized, peer-to-peer exchange built on top of the Ethereum blockchain. The protocol enables the trading of cryptocurrencies across multiple blockchains.
The protocol allows participants to trade a wide range of assets in a permission-less manner. The protocol unites more than a dozen of DEX apps that provide users with all necessary tools to buy, sell, and swap a great diversity of Ethereum-standard coins.
Initially, ZRX token conferred voting right on protocol modifications, and it also was used to pay fees for transactions taking place on the protocol. But following the version 3 update to the project in 2019, ZRX token got the staking functionality too, so that the protocol’s liquidity providers began to receive tokens as a reward.
ZRX Price and Market Performance
According to CoinMarketCap.com, there are 845 million ZRX units in circulation, which is 85% of the maximum 1 billion token supply. ZRX has a market capitalization of $944.734M as of November 23, and its market rank is #115.
0x (ZRX) is not suitable for mining. The platform employs a proof-of-work algorithm, making the coin non-mineable in the traditional sense.
0x Labs, the team behind the 0x decentralized exchange protocol, raised $24 million during their Initial Coin Offering (ICO). This ICO took place from August 15 to 16 in 2017 and resulted in the collection of $24 million in the ETH equivalent, finding support from more than 12,000 investors.
The project itself was backed by a group of venture capitalist firms including Polychain Capital, Blockchain Capital, and Pantera Capital, as well as Chinese investment firms Jen Advisors and FBG Capital.
ZRX cryptocurrency proved to have a solid potential for gains. The estimated return on investment for ZRX tokens (if acquired at launch) is over 886% at the time of writing this article. To give an idea of the price range for the ZRX, the coin hit its all-time high of $2.53 almost three years ago. Almost four years ago, on August 16, 2017, the protocol reached its all-time low of $0.104. At the time of publication, ZRX price is hovering around the $1.10 mark with a 24-hour trading volume exceeding 95 million dollars.
What is the 0x Protocol?
0x is a peer-to-peer protocol that helps to decentralize the exchange of tokens and other crypto assets issued on the Ethereum blockchain. Developers can use 0x to create their own cryptocurrency exchange applications with a wide range of features, such as the ability to trade OTC tokens created on the Ethereum blockchain.
The 0x system allows reducing gas costs for transactions performed within the Ethereum Network.
Transfers are executed by the Ethereum Smart Contracts, which are public and free to use, so that any decentralized application can seamlessly connect to the 0x protocol to access public liquidity pools and use the protocol’s numerous services.
0x implements the so-called trustless network, where you can exchange any ERC20 tokens. Payments in such a network take place without the participation of the counterparty. The protocol does not charge any fees for its services, though, members need to pay gas fees to relayers that connect makers with takers.
Gas in Ethereum is the amount of money required to enter a transaction into the blockchain. It is not fixed, and users generally set their own gas fees. To ensure the payment is verified as soon as possible, users have to set higher gas royalties. Those who do not hurry prefer to set lower gas royalties, which means they will wait for a while to get the operation completed.
In a very broad sense, the 0x protocol allows you to access all Ethereum projects from a single place, without the need of registering on multiple cryptographic exchanges and getting hold of numerous wallets.
There are three groups of participants in the 0x network:
- Market makers – people that initiate transactions, send transfers, and pay for processing the transactional operations.
- Takers – those who accept the transactions (payment receivers).
- Relayers – they verify and process payments.
History of 0x (ZRX)
0x operates under the legal name ZeroEx, International. It came into existence on October 1, 2016, as a joint venture of two entrepreneurs Amir Will Warren and Amir Bandeali. 0x is headquartered in the San Francisco Bay Area on the west coast of the United States.
The purpose of 0x is to create a world where all forms of value could take the form of tokenized assets on public blockchains like Ethereum. Here, value forms refer to traditional financial instruments, including fiat currencies, stocks, bonds, commodities, video game items, digital collectibles, software licenses, insurance, and more.
The short-term missions that 0x decided to achieve in order to accomplish its long-term vision include creating public infrastructure and increasing the availability and liquidity of assets. The platform also endeavors to empower development teams around the world to build a new financial system. The ultimate goal is to create a tokenized world in which value could flow freely. 0x’s most grandiose ambition sounds like the creation of the most efficient, transparent, and fair financial system in history.
Is 0x and ZRX the Same?
0x is an open, blockchain-powered protocol that enables seamless peer-to-peer token trading on the. It includes products such as the 0x API, a liquidity aggregator, and 0x Matcha, a global liquidity and markets search engine.
ZRX is an ERC20 utility token that supports the 0x protocol. It allows staking and grants governance rights to its holders. As of 2019, ZRX owners also have the option to delegate their stake to market makers to receive passive rewards without losing their voting rights on proposed protocol improvements.
Advantages of 0x (ZRX)
The API offered by 0x acts as the best-in-breed liquidity aggregator. This allows users to focus on their products instead of wasting time and energy on finding the best rates for operations. The intelligent 0x order routing system splits the transaction across multiple decentralized exchanges, helping you get the lowest possible slippage.
Using 0x also saves you the hassle of creating accounts on numerous platforms. 0x brings all popular decentralized exchanges under one umbrella including Uniswap, Oasis, Dodo, Balancer to name a few.
Market makers can offer competitive prices through the 0x’s RFQ system. The API interacts directly with market makers to enhance open liquidity with exclusive pricing. As a DEX aggregator, 0x consolidates liquidity both on-chain and off-chain. The API sources on-chain liquidity from such smart contract liquidity pools as Uniswap and Curve. To provide off-chain liquidity, the protocol resorts to open order books from 0x Mesh.
0x’s protocol performance is one of the best in the DeFi industry. The platform claims that in 70% of cases, API 0x provides better-adjusted prices than its primary competitors Dex Ag, Paraswap, and Uniswap. The adjusted price is the final price after paying all transaction fees.
0x Matcha is a global liquidity and markets search engine. Offering solid exchange functionality, Matcha helps DeFi developers and traders to purchase and sell assets at the best rate across all sources of DEX liquidity. This is an aggregator uniting 26 decentralized exchanges under one roof.
Matcha provides a secure and fast-performing environment where participants never encounter hidden trading fees. This engine allows everyone to start trading directly from their wallet without opening an account on third-party exchange platforms. It has no trading limits and does not require additional costs for deposits and withdrawals.
Concerns of 0x (ZRX)
The 0x code is incomplete, as inferred by Cornell Tech’s Initiative for Cryptocurrencies and Contracts after reviewing the 0x’s open-source code on Github and the project’s whitepaper. The researchers also criticize the platform for not fully specifying the role of ZRX tokens when deciding on the protocol updates. Researchers assume this could lead to potential security issues.
ZRX tokens to necessary to pay relayer fees on the platform. Since market makers and takers can identify each other through the public order book, they have a real opportunity to omit relayers and start trading directly point by point, which may present another potential issue. Many observers also feel that having a dedicated token to pay for “relayer fees” is impractical, as users can easily pay with ETH, Ethereum’s native token.
Where to Buy ZRX Tokens?
ZRX is one of the largest cryptocurrencies by market capitalization. Hence, it is listed on many popular cryptocurrency marketplaces. In fact, more than 200 different exchange platforms added ZRX to their inventories.
If you do a little research, you will quickly discover platforms where you can buy ZRX for fiat currencies like USD, GBR, or EUR as well as trade BTC, ETH, and other cryptocurrencies in your possession for ZRX. Since the 0x protocol itself is an Ethereum-based decentralized exchange solution, you can buy ZRX on the 0x platform too.
Getting started with cryptocurrencies can be a hard quest if you have no previous experience under your belt. Crypterium understands the pains of beginner crypto traders and offers a maximally simplified, yet effective way of purchasing ZRX cryptocurrency with your debit VISA or MasterCard.
Having just as little as €2.5, you can buy ZRX tokens or any other popular cryptocurrency like Bitcoin (BTC) and Ethereum (ETH) in a matter of a few seconds, enjoying the fairest rates in the business. Crypterium is equipped with advanced, user-friendly tools and services allowing you to trade and manage your digital capital with enterprise-grade security.
Whether you are looking for an ultimately secure storage solution to safeguard your virtual holdings, need a comprehensive cryptocurrency exchange with modest trading rates, or you want to relish the easiness of sending and spending tokens worldwide, Crypterium has you covered. It is the only cryptocurrency wallet for Android, iOS, and desktop addressing veritably all your crypto needs.
Where to Store ZRX?
ZRX token is an Ethereum-powered ERC20 tokenized asset. This means you can store your ZRX funds on any reputable Ethereum-friendly wallet, including Crypterium.
Is 0x (ZRX) A Good Investment?
Cryptocurrencies are so volatile that it’s hard to tell if any of them are good long-term investments. You can trade this volatility, but it is a risky business. While some traders are making insane millions on Bitcoin fluctuations, others just lose their money. ZRX price is also subject to extreme ups and downs as history shows.
So is 0x (ZRX) worth pouring hard-earned money into? It entirely depends on your own beliefs. If you think the recent crashes in the cryptocurrency market have a temporary nature, then investing in ZRX might be a wise move. On the other hand, if you think the recent crypto collapse is a sign that the market is adjusting itself after a long boom period, and you also think that the high crypto prices earlier this year were an anomaly, then buying and hodling ZRX for the future could be a bad decision.
However, it is very important that you do your own research. Remember that cryptocurrencies are subject to unpredictable – and often drastic – price swings, and you should never invest more than you can safely afford to lose.
0x is one of the most widely used decentralized protocols so far.
While questions remain regarding its sustainability, the team is determined to continue putting its energy and resources into enhancing the decentralization and security of its brainchild. Because of this, 0x (ZRX) makes a decent project to consider when you are looking for ways to diversify your crypto portfolio.