0x ProtocolZRX to AUD

0x is the platform that deals with effortless peer-to-peer transactions of Ethereum based assets.  ZRX is the native token of this protocol. The main aim of this network is to allow users to have a direct trading of ERC-20 tokens from one wallet to another Ethereum based platform wallet. 

In this article we will learn about this network's working. We will also take a sneak peek into its technology. Moreover, we will discuss its features. On top of it, we will make you aware of the  challenges it will face in the future and its future plans. In short, we will give you a complete picture of this digital currency so that you can make an informed decision of whether it is a good idea to invest in this coin or not. 

What is 0x (ZRX)?

Will Warren and Amir Bandeali co-founded this infrastructure protocol in the year 2016. This network was built to make the trading of ERC-20 token effortless between different blockchains. It is a decentralized protocol and completely eliminates the need for intermediaries. Apart from conducting effortless peer-to-peer exchanges of Ethereum-based assets, this protocol provides non-custodial solutions by allowing funds to deposit and withdraw from the user's wallet. It also combines liquidity pools from various projects for making the peer-to-peer transactions even more effortless. Just like other Ethereum decentralized exchange protocols this network supports both ERC-20 and ERC-723 tokens. 
 

Technology Behind 0x Protocol

This protocol is built with the purpose of peer-to-peer transactions of Ethereum based assets. It uses some of the strongest technologies to fulfill its aim. To avoid conjunctions within the network the orders are stored on off-chain instead of blockchain.  Below mentioned are the technological foundations of this network. 

• Off-chain Order Storage 

To minimize the conjunction on the blockchains this network records transactions on off-chain. This not only reduces the conjunctions but also minimizes the cost. All the orders are recorded off-chain except the trade settlements which are recorded on the Ethereum blockchain. 

• Smart Contracts 

This network uses the Ethereum Smart Contracts to simplify and speedup the trade settlements. The work of these contracts is to automate the exchange process and guarantee a secure exchange of tokens. 

• Interoperability

This network is created in a way to work in coordination with the other decentralized applications and protocols.  This helps the users to connect this network with different appliances and services inside the Ethereum ecosystem.

Features of 0x Protocol

This protocol provides a number of unique features to its users.  These features help it to stand out from the other cryptocurrencies. Below listed are some of these features:

• Decentralized 

This network allows decentralized exchanges. Which means all the Ethereum-based tokens are traded directly and the need of centralized intermediaries are eliminated completely. 

• Token Governance 

The native token of this protocol plays a vital role in decentralized governance.  The token holders are enabled to take part in the network's governance and decision-making process. This guarantees active involvement of the community. 

• Security 

Security is the major aim of many cryptocurrencies. To provide security this protocol uses smart contracts on the Ethereum blockchain. Apart from it the protocol is constantly evolving to solve the vulnerability issues. 

Where Can You Buy 0x (ZRX)?

Cryptocurrency exchanges like Coinbase Pro, Binance and BitMax support this token. To acquire these digital tokens you just have to follow the below mentioned easy steps:

• Crypto Exchange Search 

Search for a reliable cryptocurrency exchange that supports this token. Choose a secured exchange.

• Account Creation 

Create your account on that exchange by completing the necessary KYC verification process. 

• Fund Deposit 

Deposit funds into your account and place purchase orders for the required amount of coins. 

• Check Coins Credited

Once the purchase order gets verified your account will be credited with the requested amount of coins. 

• Wallet Transfer 

Transfer the coins into safe wallets to avoid any kind of threats. 

Challenges and Risks associated with 0x Protocol 

Even though most of the cryptocurrencies take maximum efforts to avoid any kind of threats, still there are certain risks and limitations that cannot be avoided. There are many such risks, we have listed a few of them below:

• Adoption 

Cryptocurrencies are a very new form of financial system. This makes it difficult for people to understand it and put their trust in them. People have trust in real estate, gold, banking institutions, stock exchange and other investment avenues rather than digital coins. Since many cryptocurrencies are completely decentralized, no centralized authorities like banks or other financial centers support them. This further raises trust issues among investors.

• Regulatory Uncertainty 

Crypto coins have just put their baby steps in the financial systems. That is why the regulatory landscape is constantly evolving. Every now and then a new law or policy is introduced. It becomes difficult to keep up with the constantly changing regulatory landscape. 

• Competition 

Every cryptocurrency in the crypto ecosystem has somewhat the same features. Decentralized, scalability, and security are almost the main objectives of every cryptocurrency. This gives rise to competition within the ecosystem. They not only have to lock horns with the newly introduced crypto coins but they also have to face the crypto giants like Bitcoin and Ethereum. 

Future Outlook of 0x Protocol 

This protocol has some of the best features and technologies that helps it to achieve its goal and to establish itself as a leading player in the cryptocurrency market. It has a team of skilled developers who are working constantly to improve the user experience. It even has an active community that participates in the working of the network. It is likely that soon this protocol will achieve widespread adoption and recognition in the market. 

Conclusion 

To conclude we would suggest that this digital currency is best suited for those who are looking for effortless peer-to-peer transfers of Ethereum based assets. This protocol provides the best features and security systems. Just by considering the risks involved one can make suitable investment decisions.