Crypto Corner: a profile on ZRX

This year saw ZRX and a whole host of other ERC-20 tokens join the Wirex family. In case you’re still trying to get to know them all, we thought we’d help you out by introducing them one by one.

So, let’s learn a bit more about ZRX.

What’s it all about?

ZRX is the governance token for 0x, which is a protocol used for the peer-to-peer exchange of tokens on the Ethereum blockchain.

0x allows any developer to quickly and easily build their own decentralised exchange and set their own fees. It connects buyers and sellers directly, without actually holding any tokens itself. It does this by using a publicly accessible system of smart contracts that can act as a shared infrastructure for a variety of decentralised apps.

The 0x protocol aims to address the inefficiencies with existing decentralised exchanges which use on-chain order books (lists of all buy and sell orders available on an exchange for a specific trading pair). These inefficiencies, namely slow block times and hefty network transaction fees, are resolved by 0x’s use of a Relayer model, which takes transactions off-chain and reduces network congestion and gas fees in the process. It works as follows:

  • A ‘Creator’ makes a request.

  • A ‘Relayer’ (a node within the protocol) posts this request in an off-chain order book (and earns ZRX for doing so).

  • A ‘Taker’ acknowledges the request and fills the order (and pays a ZRX fee for doing so).

0x’s native token, ZRX, is not only used to pay Relayers for their book-making services, it also gives those who hold it a say in how the protocol is run and improved upon.

Who came up with the idea?

0x was founded by Will Warren and Amir Bandeali in October 2016. They launched the protocol in 2017 as part of their mission to “create a tokenised world where all value can flow freely.”

Any fun facts?

The co-founders’ original intention behind 0x was to create a world where all forms of value - including fiat currency, stocks, real estate, software licences and even video game items - are tokenised.

They set out to provide a trustless method of exchanging these assets, which would be represented as tokens on the Ethereum blockchain.

However, they soon realised that this involved a significant usability gap, so decided to turn the project into a decentralised exchange protocol instead.

What can you do with ZRX?

ZRX is available to buy, store, exchange and spend with Wirex along with a wide array of other top tokens. You can buy or exchange it in the Wirex app at exclusive OTC rates or spend it in real life with your multicurrency Wirex card.

Get yours today!

4 Likes

Thanks for the sharing :fire:

1 Like