0x (ZRX) – is an open protocol that facilitates the decentralized exchange of assets on the Ethereum blockchain. This platform wants to streamline token trading with off-chain orders via Ethereum powered smart contracts.
The month of May has seen both upwards and downward movement in the cryptocurrency market. Today saw some big plunges with almost all of the top 100 coins in the red zone – except for 0x (ZRX). The 0x token, ZRX, rapidly spiked to $1.45 today in a matter of minutes. At the start of the day, ZRX was trading at $1.02 and as of writing is currently at $1.45. Bitcoin reached a two month low last week at $7,925, dragging the alt coins with it. However, when Bitcoin rebounded from $7,925 to $8,300, ZRX rose from 0.00015 to 0.000174 BTC.
0x (ZRX) Chart source: coinmarketcap.com
While rumors of this coin being added to Coinbase have been swarming the community for quite some time, one public announcement has been made by Coinbase, and that is the implementation of Paradox, which is built on 0x. Not only is this great news for Paradox, but news of this partnership has already shown ,massive benefit for the 0x token as it was the best performing coin in the top 50 in the last 24 hours. The 0x protocol reduces gas costs and eliminates blockchain bloat and collects a fee each time they facilitate a trade. This allows for a trestles exchange which reduces the risk between trades due to the distribution of the network. 0x provides shared liquidity and moreover lets users trade directly with known counterparts for free or purchase services from relayers in order to salvage some of their liquidity. investors are looking at 0x (ZRX) as a big HODL for 2018.
— Paradex (@ParadexIO) May 23, 2018
Statement from Paradex:
“One year ago, this month, we set out to build the best decentralized relayer that empowers users with self-custodianship. A year later, we’re not only extremely proud of what we’ve achieved, but intensely optimistic about where our space is headed. Coinbase was our very first interaction with crypto, our gateway to the world of blockchain. Right from the beginning, they set a bar that the entire ecosystem, Paradex included, has aimed to reach. That drive toward quality, openness and adoption has really served as the foundation to this acquisition.”
It is possible that 0x will not go back under the $1 mark any time soon. This partnership will provide big opportunity for both Paradex and 0x. Overall, Coinbase will reap benefits from this, too. However, it appears it is a very high chance this coin will be added to the Coinbase exchange in 2018. The significant impact Coinbase plays on the market does not go unnoticed and now ZRX has the upward position. The 0x project has three team members who were former employees of Coinbase: Fred, Ersham, Linda Xie, and Olaf Carlson-Wee. These players could be instrumental in the successful combination of these two platforms operating together. It is the presence of these ex-Coinbase minds o th e 0x project that has got people assuming. The partnership with Paradex, too.
According to CNBC, “Coinbase plans to make some enhancements to the technology and launch Paradex’s services to customers outside of the United States, enabling them to trade “hundreds of tokens,”.
(The 0x exchange is a collection of ordering books that 0x users establish themselves. With 0x, anyone can set up an exchange node by running the 0x protocol and opening up an ordering book on the node. You can access the exchange in its current state through 0x’s exchange portal, but this only allows users to trade 0x and Wrapped Ether. The complete platform should be live by Q4.)
0x was founded in October 2016 with the goal of a future where assets of all flavors, from stocks to currencies to precious metals, are traded publicly as tokens on the blockchain. Given the versatility of Ethereum’s platform, the 0x developers look at Ethereum’s blockchain as the ideal medium to accommodate this revolution in asset exchange. This protocol allows for the transfer of tokenized assets like securities, derivatives and other traceable unique tokens.
0x’s decentralized method of trading focuses on off-chain ordering relay that cuts back on gas prices and reduces network bloat.
Most decentralized exchanges function using smart contracts powered by the Ethereum blockchain meaning all order functions and trades take place within these smart contracts and users are always in control of their funds – rather than using a third party like a centralized exchange.
This also means traders must execute transactions on the blockchain every time they want to manage their funds, whether they are filling an order or reposting funds. This costs gas, a fee paid in Ethereum to ensure that the transactions are processed on the blockchain by its miners.
0x protocol wants to improve decentralized exchanges by utilizing off-chain ordering relays in conjunction with on-chain settlements, allowing users to broadcast an order off-chain to be filled by another user. While decentralized exchanges are great for their security benefits, they lag behind their decentralized counterparts in both user operation cost and accessibility for this very reason and this is where 0x comes in.Transactions are only run through the network when a trade is executed, allowing users to reduce the gas fees associated with trading operations.
0x combines the strengths of both centralized and decentralized exchanges while leaving their weaknesses behind. On-chain transaction settlements give users all the benefits of decentralized trading, making it so that transactions are only cleared once both makers and takers hold up their end of the bargain.
By creating a standardized protocol for exchanges to operate on, 0x essentially provides the ability for anybody with the prerequisite resources to create an entirely new decentralized exchange platform for themselves. Since all cooperating exchanges using the 0x protocol operate on the same infrastructure, the network provides networked liquidity that would not be possible with all entities using proprietary exchange software.