Cryptocurrency 0x (ZRX): the pros and cons of working with the token and its purpose
0x (ZRX) is a special protocol that facilitates and improves the work with assets based on ERC20. 0x is used to develop various applications that help carry out more complex financial transactions, as well as having additional functions. For example, the implementation of an exchange without the mediation of cryptocurrency exchanges.
This asset also helps traders transfer commissions to relay accounts. ZRX is also used to improve work with smart contracts: developers using 0x have the ability to replace and change contracts, making work more profitable and convenient.
Today, you can purchase this asset on 10 different exchanges, including Binance, Huobi, HitBTC, and other large trading platforms.
The ZRX token was launched in a test format in 2017. As you can see, this is a very young product, which, however, is already quite popular. Last May, the project won the Consensus 2017, a major competition in which the best startup was selected and promoted.
The first working version of 0x will be released very soon: it will be entered into the standard code of Ethereum after conducting some security tests. A separate will also be released the token project for everyone to invest in it.
Since 0x is a protocol, it is difficult to demonstrate its work visually before the full launch of the project. Therefore, the development team created a special platform 0x OTC, where everyone can visually see all the features and benefits of the product.
Among the well-known investors, the following Chinese companies that have already invested heavily in the development of the project are Polychain Capital, Blockchain Capital, and Pantera Capital.
Fred Ersham, one of the founders of CoinBase, as well as Joy Krug, co-founder of Augur, also became one of the first investors. Such names among investors already allow you to start considering 0x as a good and promising startup.
The Executive Director of 0x in one of his speeches said that their project is completely non-profit and that any user can use the protocol. We’ll talk about monetization methods later in this article.
Features 0x: how does this project stand out among others and what is its essence?
The development team has created and is improving a protocol that will help users make peer-to-peer coin exchanges on the Ethereum blockchain. This development allows you to “connect” a decentralized application in which the exchange function is built-in. In fact, the protocol is a kind of bridge that will connect programs that before that could not exchange assets without intermediaries.
For the implementation of any transaction, public smart-contracts are used. This practically eliminates the value of using the protocol.
Protocol updates occur automatically using a decentralized system: neither users themselves nor applications that use the protocol suffer from this.
0x has a number of distinctive features that allow the project to claim uniqueness, and hence the great value in the market. Here are some product features:
- 0x is a protocol, not a separate application for conducting transactions. This, in principle, expands the development capabilities, allowing you to implement it in other applications and projects;
- 0x is a fully decentralized system. And this means that no one can steal all the means of users and withdraw them. Also, this feature avoids the direct influence of states on the project;
- Using the protocol will not cost. It is absolutely free and available to third parties. However, this does not prevent users from creating paid projects and applications with the introduction of 0x;
- The protocol is designed to work with smart contracts, which means that transactions can be performed directly in the Solidity code;
- The developers also said that all investments from the purchase of the token will be directed to improving the security of the project. If they keep their word, they can count on the best defense possible today.
Why do I need a 0x token?
In addition to the 0x protocol, as we have already said, a special token is created. This is an open opportunity for all users to invest in a developed project. But why buy this asset? What opportunities will it open to investors?
In fact, these are two main options that can directly affect the development of the entire project:
- The ability to control. Asset owners can vote on ways to promote and develop a protocol. This will allow developers to choose the most important and popular ways for the development of the project. This option allows you to significantly increase the effectiveness of each update;
- Payment of relaying. Working with the protocol, users will need to somehow pay for the placement of orders outside the exchange trading. For this, the ZRX token will be used. This will apply to both sellers and buyers of all types of assets.
By the way, the value of the new token will depend on the number of such transactions. The more such operations are performed, the faster the asset will grow in value.
There are currently about 1,000,000,000 ZRX on the market. All assets are distributed among users as follows:
- 15% of all coins are held by the developers of the protocol;
- 15% in the hands of the founders of the project;
- 10% owned by the founders;
- 10% is due to the very first investors;
- 50% are available for trade and investment among other network users.
You won’t be able to mine ZRX: you can only buy coins on certain cryptocurrency exchanges.
Development 0x: advantages and disadvantages
Well, let’s highlight some of the pros and cons of this startup. Let’s start with the positives:
- The 0x project has a good reputation – the development team won a major startup competition, and among the investors and co-founders of the company you can find popular experts and developers of blockchain projects;
- The appearance of the token on large cryptocurrency exchanges also indicates that this development was well accepted by the community and will grow in value in the future;
- The startup itself has many unique features that distinguish it from other developments. The big plus is the availability of the product – the 0x protocol is a completely free development;
- The essence of 0x is to connect decentralized applications and enable them to exchange assets through smart contracts. A similar opportunity is in demand on the market and many traders have long been waiting for the realization of such an opportunity.
These, of course, are not all the benefits of 0x. But the main advantages allow us to say that this asset can become quite successful among network users.
Now let’s highlight some of the shortcomings that can be found in this development:
- There are some concerns that SEC rules will restrict the use of this protocol for US citizens, as some ERC20 assets are securities in the country;
- The protocol is designed to work exclusively with ERC20 tokens. If there is a development using smart contracts that will overtake ethereum in popularity, the 0x protocol may have big problems. However, there are no developments in the market that could create such an obstacle;
- A number of projects are currently being developed that are trying to promote similar features that are offered by 0x. These are, for example, Ether Delta, iDex, Maker Market (now Oasis Dex) and Shapeshift, which want to implement such functions on separate trading floors.
However, in general, we can say that 0x is a very promising project. And these shortcomings are more likely cloudy concerns than real threats. Therefore, now you can decide whether to invest money in 0x.