We are steadily moving towards a “token economy” – a world where anybody can issue cryptocurrencies and in which all assets are tokenized and all transactions are handled on blockchains. Among them, the 0x protocol is a project that aims to build a platform upon which various tokens can be exchanged, thereby cementing themselves as the infrastructure of the token economy.
What is 0x Protocol?
Two years have passed since Ethereum’s birth, and the market has exploded; there are currently more than 500 distributed applications (Dapps) in development. One problem: it’s still not possible to directly exchange between tokens used for different Dapps. This greatly impedes user movement across different Dapps. 0x hopes to create change this by allowing exchange between tokens as a building platform for token exchange applications.
0x is an Ethereum-based project that makes it possible to exchange different tokens using Smart Contracts. Most conventional cryptographic currency exchanges are centralized and can not avoid counterparty risks, but 0x is developing an autonomous decentralized token exchange that does not require a centralized agency. Since 0x is used as a platform for developers to build token exchange applications,think of it as the infrastructure for end users to build applications.
Upon launch, users will be able to exchange ERC 20Ethereum, MakerDao, Melon, Augur, Digix DAO, Golem Network, and 0x protocol tokens.
The Future of 0x
A lot of cryptographic currencies and Dapps have been developed since the creation of Bitcoin to the present, yet most of them are project-specific. As products that utilize blockchain proliferate, infrastructure development will become indispensable.
By combining blockchain technology with the development of AI and IoT, one can imagine a future where everything is automated through smart contracts. In the token economy – where unique tokens are issued and various assets are tokenized – expectations are rising for the role that the 0x protocol as infrastructure will play.
ICO started on August 15, 2017, 0x protocol token (ZRX token) is sold and ZRX token is used as transaction fee in 0x protocol. In the future, they will implement a policy to autonomously decentralize the governance in the 0x protocol. At that time token holders will have voting rights.