What Is ZRX
Launched by a token generation event and ICO in 2017, ZRX token is the native currency of an Ethereum (ETH) interoperability and digital asset exchange blockchain. ZRX functions as the utility token for the 0x decentralized exchange.
It is also developed with support in mind for secure, easily auditable underlying smart contracts for exchanges and holders of Ethereum based tokens. Blockchain engineers can develop decentralized applications that are called from the ZRX blockchain to execute functions related to their digital assets.
It's programmable money, programmable finance, and programmable titling, with the modular open architecture that makes all kinds of promise additional upgrades and features possible.
The 0x exchange also features an off chain order book. The off the chain order solution is a decentralized exchange solution that allows most trade activity to occur off-chain, and only make entries to the main blockchain for trade settlement.
This lowers network congestion, improves transaction and response time, lowers fees, and builds more programmability into the blockchain architecture, allowing developers to elaborate exchange functionality out further on a second layer.
The 0x protocol works to facilitate the peer-to-peer (P2P) exchange of ETH assets with an open standard and core implementation for decentralized finance exchange (DEX) functionality.
The 0x platform was developed by 0x Labs, and is supported by developer tools built for the 0x ecosystem, a global P2P DEX order book called 0x Mesh, and an API that provides easy integration to aggregated token liquidity pools sourced from exchange operations.
ZRX Founders
Will Warren and Amir Bandeali founded 0x in 2016. The duo continue to work on the platform in an official capacity, with Warren working as CEO and Bandeali serving as chief technology officer (CTO).
The platform launched in 2017 with a very lucrative token generation event (TGE) and initial coin offering (ICO) that fetched $24 million at offering. Deep ZRX ICO buyers included major investment companies like Polychain Capital, Pantera Capital, and FBG Capital.
Before the smash ICO, Warren had worked in several research capacities. He did a brief stint as a technical advisor to the Basic Attention Token (BAT) blockchain project that shares ad revenue with users and blocks ad networks that don't. Bandeali, meanwhile graduated from the University of Illinois with a Bachelor of Science in Finance and held several positions in trading before helping to found 0x.
Today the team consists of over 30 individuals that include engineers, researchers, and product designers, who work to keep the platform up to date and running to a high degree of quality.
ZRX Usage / ZRX Price
ZRX token is used as the fundamental unit of exchange and function on the 0x blockchain, and for decentralized governance. It is the native token of an open protocol for building user facing applications that allow them to exchange and exercise commercial and creative functions with Ethereum digital assets easily.
One special feature of 0x is its protocol allows for interoperability among both fungible ERC-20 tokens and non-fungible ERC-723 tokens. This allows it to be used for the permissionless, trustless, borderless, censorship-resistant, decentralized trade of a wide and ever growing range of digital assets. That gives holders of these tokens the ability to buy, sell, and trade them for a vast majority of Ethereum assets using any of already more than a dozen different apps in the 0x app catalogue.
The implementation is very adaptable. It can be used for instance, to build asset exchange as a supporting feature for another primary product, such as integrated for in app purchases, and automated asset management platforms.
Investors speculating on the success of the 0x ecosystem take a long position in the token's price by buying and holding ZRX coins. Other investors profit from making arbitrage trades with more information against short term inefficiencies in the ZRX coin price on liquid exchange markets.
ZRX price is a function of the overall health and success of the ecosystem's business. It is also moves along with the general momentum of the cryptocurrency industry's market prices, and is impacted by strategic global macro factors.
Users of the 0x platform who act as liquidity takers pay the ecosystem a fee in ZRX coins. The fee is used to incentivize market makers as a reward for supplying liquidity. Completed transactions are powered by Ether (ETH) paid as a protocol fee in 0x.
The 0x project is open source and does not receive any revenue from the protocol fee or liquidity fee. Instead, the team unlocks ZRX tokens as team and developer incentive.
ZRX Network Security
ZRX is based on the Ethereum blockchain, so it is secured by Ethereum's state of the art cryptographic security and global blockchain architecture.
The Ethereum blockchain is secured by cryptographic hash cash problems based on the SHA-256 public key encryption algorithm to qualify nodes to validate transactions on the network and maintain records of the blockchain.
It is the second most secure blockchain in the world by hash power, and network security is provided by thousands of nodes all over the world running on a decentralized, anonymous, peer-to-peer protocol. This massive network of Ethereum miners and nodes secures ZRX.
The Ethereum chain is as of mid-2021 in successful transition to a mix of security and consensus built out of a hybrid of proof of work and proof of stake (PoS). Proof of stake locks ETH tokens in a one way function, and the ventured coin cannot be regained other than through correctly validating blocks while following network protocols.
