ZRX-0x protocol Introduction details


0x is an open source protocol for peer-to-peer transactions to facilitate ERC20 token transactions in the Ethereum blockchain. The agreement aims to serve as an open standard and a common building block to promote interoperability between decentralized applications (DApps) that include exchange functions. The transaction is executed by the Ethereum smart contract system, which can be publicly accessed, used free of charge, and can be accessed by any DApp. DApps built on the agreement can access the public liquidity pool or create their own liquidity pool and charge transaction fees for their trading volume. The agreement will not impose costs on users, nor will it arbitrarily obtain value from a group of users to benefit other users. Decentralized management is used to integrate updates into the basic protocol in a continuous and secure manner without interrupting higher-level processes.


Project highlights

As an open source agreement for peer-to-peer transactions, 0x is a system based on Ethereum's ERC20 token transaction development. The goal of the agreement is to establish a set of standards in the middle of cryptocurrency transactions and to build a universal module so that anyone can easily develop Dapps.
The 0x protocol can promote the decentralization process of the exchange, which greatly facilitates the ghostwriting transactions between users. Some time ago, the decentralized transaction between tokens promoted by IMtoken Wallet was based on the established 0x protocol.
The transactions on 0x are executed by Ethereum's smart contract system, open to the outside world, and can be accessed publicly without any fees. It is extremely scalable, allows any Dapp to intervene, and promotes the prosperity of the entire ecosystem.
The agreement will not impose costs on users, nor will it arbitrarily obtain value from a group of users to benefit other users. The source of the cost is mainly shared with the team that develops the Dapp on the project and uses the fund pool application. It is also the consistent aim of the team to ensure the maximum benefit of users.
Decentralized management is used to integrate updates into the basic protocol in a continuous and secure manner without interrupting higher-level processes.
0x combines the advantages of centralization and decentralization. The off-chain chain processes orders and the On-chain chain settles. It saves resources, increases speed, and reduces the possibility of hacker attacks. Make the entire system more secure, and protect the privacy of users and the security of transactions.
Through 0x can simplify the transaction between ERC20Token. Everyone can use 0x as a backend to achieve a decentralized exchange. Distributed nodes can ensure the decentralization of the protocol and increase the user's trust.
There are already a large number of projects that implement decentralized transactions based on 0x. The implementation of the 0x project is in good condition, and an application ecosystem based on 0x is gradually being established. From the number of twitter and reddit fans, the 0x project has received a lot of user attention.


 Operating mode

The ZRX protocol adopts two order modes during the transaction process:
1. Point-to-point order: The order is filled by both buyers and sellers to ensure safety and point-to-point transmission, but the application value is not large, and transactions between people who trust each other are required.
2. Public broadcast orders: a decentralized exchange based on the 0x protocol, which maintains orders by passing messages between buyers and sellers to achieve peer-to-peer transactions. Use smart contracts to achieve automatic transactions, eliminate the involvement of third parties, and ensure safety and privacy.
The 0x protocol is open source, so any decentralized application can be publicly accessed, free to access and use through the port. A decentralized application built on the 0x protocol IQ can access the public liquidity pool and create a fund pool belonging to the application. The system will charge a certain transaction fee to maintain the operation of the system itself.


 
Application scenario


0x is a p2p ERC20 token exchange protocol based on the Ethereum blockchain. It has standard open source protocols, universal creation of blocks, and interoperability of transaction functions in distributed applications. Decentralized applications based on the 0x protocol can enter the public flow pool, or create their own flow pool, and charge a certain fee.

1. Decentralized governance
Decentralized organizations use tokens to represent ownership and guide their governance logic. The decentralized organization uses the 0x protocol to seamlessly and securely initiate the transaction of capital ownership.
2. Predict the market accurately
The decentralized prediction market platform will generate token collections according to the financial risks contained in it based on events in the real world. Use the 0x protocol to allow these tokens to be traded immediately.
3. Stable tokens
The successful construction of new economic structures such as StableCoins depends on the support of an efficient liquidity market. The 0x protocol can effectively promote the underlying economic mechanism and help keep the token stable.
4. Decentralized loan model
Efficient lending requires the support of the liquidity market, providing investors with a convenient platform for buying and reselling lending commodities. Using the 0x protocol can build a self-organizing ecosystem for borrowers and efficiently determine the market price for all outstanding loans.
5. Fund management
Decentralized fund management effectively limits the investment behavior of fund managers by dividing asset classes that need to be agreed in advance. Embedding the 0x protocol into the fund management smart contract can ensure that it adheres to security constraints.