Have you ever wondered what powers the decentralized exchanges that allow you to swap cryptocurrencies seamlessly without relying on traditional intermediaries? Enter the 0x Protocol, also known as the backbone of decentralized finance (DeFi). But what is the 0x protocol? How does it work? Without any further ado, let’s dive into further details about this unique protocol.
What is 0x Protocol (ZRX)?
The 0x protocol is a foundational technology enabling the direct and decentralized exchange of assets built on the Ethereum blockchain.
It is an open-source standard, providing the essential infrastructure for developers seeking to incorporate exchange capabilities into their decentralized finance (DeFi) projects.
Why Was 0x Protocol Created?
The 0x Protocol was created to address the demand for decentralized exchange infrastructure, offering an alternative to centralized exchanges that dominate the cryptocurrency trading industry. Consequently, it exhibits distinct characteristics that set it apart from these centralized counterparts.
Who is Behind 0x Protocol?
0x Lab’s Company team of developers and experts creates and maintains the protocol, ensuring its continued development and improvement.
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How Does 0x Protocol Work?
Below are the ways the 0x Protocol works.
Decentralized Exchange
At its core, the 0x Protocol facilitates decentralized exchanges of Ethereum-based tokens.
Unlike traditional centralized exchanges that rely on a central authority to match and execute trades, 0x operates in a peer-to-peer fashion.
Users can directly trade their tokens without the need for an intermediary.
Smart Contracts
Smart contracts are the backbone of the 0x Protocol. These self-executing contracts automatically enforce the terms of a trade without requiring a middleman. In the context of 0x, intelligent contracts facilitate order creation, validation, and settlement.
Users who want to trade a specific token for another create an order through an intelligent contract.
Liquidity Rewards
Liquidity providers are incentivized to participate in the 0x network by earning rewards. Users can contribute their tokens to liquidity pools, which is essential for ensuring enough assets are available for trading. In return for their contribution, liquidity providers receive rewards through fees from traders who utilize their liquidity pool.
Advantages of Using 0x Protocol
Here are some advantages of 0x Protocol.
Speed and Cost-efficiency
One of the primary benefits of the 0x Protocol is its ability to provide fast and cost-effective asset exchanges.
Since it operates on the Ethereum blockchain, transactions are executed quickly, typically within seconds, and at a fraction of the cost compared to traditional financial intermediaries.
Security
The 0x Protocol is built on the Ethereum blockchain, known for its robust security features. Smart contracts power the protocol, ensuring that trades are executed precisely as intended, without the need for trust in a centralized entity. Users retain control of their assets throughout trading, reducing the risk of hacks or fraud associated with centralized exchanges.
Accessibility
0x Protocol is open-source and permissionless, meaning anyone can access and use it without needing approval or permission from a central authority. This accessibility fosters innovation, allowing developers to build decentralized applications (dApps) and new trading platforms on top of the 0x infrastructure.
Challenges and Concerns
0x also faces several challenges, and some of them are mentioned below.
Scalability
As the number of users and transactions on the Ethereum network increases, it can cause congestion in the ecosystem and also slow the speed of transaction processing. This can impact the efficiency and user experience of decentralized exchanges built on 0x.
Competition
The blockchain and cryptocurrency space is highly competitive, with numerous decentralized exchange protocols and platforms vying for market share. While 0x was an early pioneer in decentralized exchange technology, it faces competition from protocols like Uniswap, SushiSwap, and PancakeSwap, which have gained significant popularity and market adoption.
Regulatory Issues
The regulatory environment surrounding cryptocurrencies and decentralized finance (DeFi) is evolving and can pose regulatory challenges for 0x and its users. Compliance with different regulations can be complex and may require ongoing adjustments to the protocol to ensure it remains compliant.
Comparison With Other Protocols
Uniswap is an AMM-based decentralized exchange protocol, whereas 0x uses a different approach known as an order book model. Uniswap provides a simple and user-friendly interface for swapping tokens, making it popular among casual users.
SushiSwap is another protocol that started as a fork of Uniswap and has similar AMM functionality. SushiSwap introduced “yield farming” and incentivized liquidity migration from Uniswap through rewards in its native token, SUSHI.
On the other hand, PancakeSwap operates on the Binance Smart Chain (BSC) rather than Ethereum, offering lower fees but a different security model than 0x on Ethereum. PancakeSwap, like Uniswap, uses an AMM model, making it similar to Uniswap and distinct from 0x’s order book model.
ZRX Tokens
ZRX is the native utility token of the 0x Protocol and plays a crucial role within the ecosystem. Here are some of the use cases of ZRX token:
Utility and Functionality
ZRX token holders have the power to influence the direction of the 0x Protocol. They can vote on proposals and changes to the protocol’s parameters and upgrades. ZRX tokens can be staked or used as part of liquidity pools on decentralized exchanges built on the 0x Protocol.
ZRX tokens can be used to pay transaction fees on the 0x network. This is especially relevant for traders and users conducting decentralized exchanges powered by 0x.
Tokenomics
ZRX tokens have a capped supply, meaning only a limited number of ZRX tokens exist. ZRX tokens are designed to incentivize active participation in the 0x network. Users can earn rewards, including ZRX tokens, for their contributions to liquidity pools, governance, and other ecosystem activities.
How to Buy ZRX Tokens on Binance
You must follow these steps to buy ZRX Tokens on Binance.
Importance of Buying ZRX on Binance
With the high liquidity and security provided by Binance, it becomes the first choice that comes to any trader’s mind when buying ZRX. Moreover, Binance offers lower transaction fees, ultimately benefiting you when buying ZRX Token.
Account Setup
Without wasting any time, let’s move to the account setup process. Use the link below to register on Binance with the Coin Labs referral code.
Binance will require an email and a solid password to register a user. The password should be firm, including small and upper-case letters that are not easy to guess, making your account more secure. Binance will then send a confirmation link to that same email, so ensure that you have access to the email that you are providing.
Security Measures
After your account has been registered, you will be able to log into your account officially. Although you can access your account, you cannot trade until your KYC ( Know Your Customer) is completed.
Binance will require your national identity card to ensure you are over 18 years old, as Binance does not allow users under eighteen to trade on the platform. You will also be required to give your CNIC Number to Binance. After that, you will also have to take a photo of your card from both the front and back.
This is not the end, they will require a live photo so that they can compare the CNIC and photo to check whether it is the same person or not. Additionally, verification can take a couple of days; however, the time varies from region to region
Once you receive the confirmation email, you’re all set to fund your account and trade on the exchange.
Fund the Account
You can fund your account in one of the following three ways:
- Credit/Debit card
- Bank transfer
- P2P marketplace
Binance enables users to deposit funds with any of the aforementioned options.
If you choose the Credit/Debit option, Binance will ask you to provide the CVC and the card’s expiry. After you have provided these details, the transaction will be fulfilled, and the desired amount of capital will be transferred into your funding account.
For bank transfer, it’s also quite similar, you just have to transfer money from your personal bank account to the Binance account by following the instructions, as they provide specific details.
Lastly, for P2P transactions, you must select a verified seller ready to sell a certain amount of USDT that you want to buy. After you have checked that the person is a verified seller, you can proceed with the payment method.
You will first have to pay in your local currency to that seller, and then he will transfer USDT into your Binance funding account within 10 minutes. If the specific amount of USDT is not transferred within 10 minutes, then you can launch a complaint, which will be resolved by Binance.
If any error occurs during your P2P transaction, you don’t need to worry. Binance freezes the USDT of the seller after the process has been started. So, the chances of scams are pretty low.
Navigation to the Trading Platform
The capital that has been funded into your account is automatically stored in the funding account, and you have to transfer those funds into the desired accounts that you want.
From the funding account, you can transfer it anywhere, for example, in a spot, futures, or options account for trading.
You may now search for a ZRX token on the Binance search bar, and after clicking upon it, you will be redirected to the trading page of ZRX Token, where you can buy and sell the ZRX Token.
Execution of Buy Order
On the trading page, you can execute two types of buy orders: market and limit orders.
You can execute your buy order immediately with a market order, and your buy price will be the market’s best price.
With a limit order, you will be able to execute your order at the desired price that you want. But that order will never be executed if the price does not reach that level.
Transferring to Wallet
After you have purchased the ZRX Token, that token will be visible in your Binance account, and you can transfer it to any secure personal wallet if you want.
Future Prospects
According to many technical analysts and experts, the 0x protocol price is expected to rise over $3 in 2030. This marks positive sentiments for all the investors looking to invest in this project.
Short-term traders willing to hold the tokens till 2025 can also expect positive returns.
Conclusion
In short, the 0x Protocol (ZRX) is a pioneering force in decentralized finance (DeFi), offering a unique approach to decentralized exchanges on the Ethereum blockchain. Its emphasis on open standards, intelligent contracts, and governance has enabled it to make a commendable mark within the crypto ecosystem.
We Coin-Labs.com provides only objective information about 0x Protocol.
Therefore, we are not responsible for the investment decision in 0x Protocol and the resulting loss.
0x Protocol Basics
Here are some factors that investors should consider before investing in 0x Protocol.
| Cryptocurrency Features | 0x Protocol (ZRX) |
|---|---|
| Publisher or Developers | Will Warren, Amir Bandeali |
| Headquarters (Registration Number) | San Francisco |
| Symbol | ZRX |
| Platform | Ethereum |
| Published Date (CMC Registration) | 2024-11-01 |
| Max Supply | 1,000,000,000 ZRX |
Reliability Score of 0x Protocol in 2024
These are indexes mesuring the investment reliability of 0x Protocol conducted by Coin-Labs.com.
| Investment Reliability Rating Items | Scores and Current Status |
|---|---|
| Company Activation Rate | / 10.0 CAR |
| Communication Rate | / 10.0 CR |
| Technology Transparency Rate | / 10.0 TTR |
| Development Participation Rate | / 10.0 DPR |
| Listing Status on the World's Top 10 Exchanges | Listed on 10 Exchanges |
| Number of Available Pairs Worldwide | 374 Pairs |
| Market Cap of the Cryptocurrency | 265,438,502 USD (Rank #167) |
The table above shows the result of investment suitability evaluation for 0x Protocol.
Check out how we evaluate cryptocurrencies on the crypto rating description page.
0x Protocol Price
Here are the price and recent trading volume of 0x Protocol. (Data of 2024-11-02 00:35:00)
| Price Items | Price and Trading Volume of 0x Protocol |
|---|---|
| 0x Protocol Price | 0.317 USD |
| Price Change 24h | -2.44% |
| Price Change 7d | -9.45% |
| Trading Volume 24h | 22,594,812 USD |
| Trading Volume Change 24h | 8.40% |
Cryptocurrency Metadata
You can check the development status and social media information of 0x Protocol through the links in the table below.
| Metadata Source | URL |
|---|---|
| 🌎 Official Website | http://0xprotocol.org/ |
| 📖 White Paper | https://0xproject.com/pdfs/0x_white_paper.pdf |
| 🛰️ Source Code (GitHub) | https://github.com/0xProject |
| https://twitter.com/0xproject | |
| https://reddit.com/r/0xProject | |
| 🎺 Message Board | https://www.oklink.com/eth/token/0xe41d2489571d322189246dafa5ebde1f4699f498 |
Where to Buy 0x Protocol
Here are the top ten world crypto exchanges where traders can buy 0x Protocol in 2024.
| Top10 Exchanges | Listed Status | Page URL |
|---|---|---|
| Binance | Listed | https://www.binance.com/en/trade/ZRX_BTC |
| Coinbase | Listed | https://pro.coinbase.com/trade/ZRX-USD |
| Kraken | Listed | https://pro.kraken.com/app/trade/zrx-usd |
| KuCoin | Listed | https://www.kucoin.com/trade/ZRX-BTC |
| Bitfinex | Listed | https://trading.bitfinex.com/t/ZRX:USD?type=exchange |
| OKX | Listed | https://www.okx.com/trade-spot/zrx-usdt |
| Huobi | Listed | https://www.huobi.com/en-us/trade/zrx_usdt?type=spot |
| Bitstamp | Listed | https://www.bitstamp.net/markets/zrx/usd/ |
| Bybit | Listed | https://www.bybit.com/en-US/trade/spot/ZRX/USDT |
| Gate.io | Listed | https://www.gate.io/trade/ZRX_USDT |
Frequently Asked Questions
What is the current price of 0x Protocol?
0x Protocol price today is 0.317 USD. Furthermore, the price of 0x Protocol has fluctuated by -2.44% from 24 hours ago, and by -9.45% from a week ago.
Where is 0x Protocol listed?
Currently, it is listed on a total of 10 among the world top 10 exchanges.
What is the market cap of 0x Protocol now?
Currently, 0x Protocol has a market cap of 265,438,502 USD, which is ranking 167 among cryptocurrencies worldwide.
How much is the trade volume of 0x Protocol?
Currently, 848,396,563 ZRX coins are circulating through 374 market pairs. As a result, in the last 24 hours, 22,594,812 USD of ZRX coins were traded in the market.
