What is 0x Protocol?

0x Protocol (ZRX) is an open-source infrastructure protocol that enables users to exchange ERC20 tokens and other assets across various blockchains, including Ethereum, without the need for centralized intermediaries. This functionality is achieved through a collection of publicly auditable smart contracts, creating a flexible, low-friction trading protocol that developers can incorporate into their products. The 0x Protocol is powered by an ERC20 governance token known as ZRX, which allows holders to participate in protocol governance and influence changes within the community treasury.

How does 0x Protocol work?

0x Protocol operates through a network of smart contracts that facilitate decentralized trading. Users can trade a wide range of assets, including both fungible (ERC20) and non-fungible (ERC-723) tokens. The protocol charges a fee in ZRX tokens for liquidity takers, incentivizing market maker liquidity. Users also need to pay a protocol fee in Ether (ETH) to cover the gas used in their transactions. As an open-source protocol, 0x does not receive any share of this revenue. Instead, it is supported by ZRX tokens unlocked as team and developer incentives, along with its initial ICO funding.

What are the potential use cases for 0x Protocol?

0x Protocol can be applied to a broad range of use cases. It can be used for permissionless trading of a wide variety of assets, enabling holders to exchange and transfer the majority of Ethereum assets through more than a dozen different apps. The protocol can also be used to create eBay-style marketplaces for digital goods and services, OTC trading desks, and exchange functionality for DeFi protocols. Additionally, 0x can be built into products where asset exchange is a secondary feature, such as in-game purchases and portfolio management platforms.

What is the history of 0x Protocol?

0x Protocol was founded in 2016 by Will Warren and Amir Bandeali. The platform was launched following an initial coin offering (ICO) in 2017, during which it collected funds amounting to $24 million. The team behind 0x Protocol is composed of more than 30 individuals, including engineers, researchers, and designers who work to update the platform and keep it running smoothly. The protocol has processed transactions amounting to over $200B since its inception, indicating its impact on the cryptocurrency trading landscape.