0x is an open source protocol for peer-to-peer transactions to facilitate transactions of ERC20 tokens on the Ethereum blockchain. The protocol is intended to serve as an open standard and common building block to drive interoperability between decentralized applications (DApps) including exchange functionality. Transactions are executed by the Ethereum smart contract system, which is publicly accessible, free to use, and can be accessed by any DApp. DApps built on top of the protocol can access public liquidity pools or create their own and charge transaction fees for their volume. The protocol does not impose costs on users, nor does it arbitrarily capture value from one set of users to benefit others. Decentralized governance is used to integrate updates into the base protocol in a continuous and secure manner without interrupting higher-level processes.

Project Highlights

As an open source protocol for peer-to-peer transactions, 0x is a system developed based on Ethereum's ERC20 token transactions. The goal of the protocol is to establish a set of standards among cryptocurrency transactions and to make it easy for anyone to develop Dapp by building a common module.
The 0x protocol can promote the decentralization process of the exchange, which greatly facilitates the transaction between users. Some time ago, the decentralized transaction between tokens promoted by the IMtoken wallet was based on the established 0x protocol.
Transactions on 0x are executed by Ethereum's smart contract system, which is open to the outside world and can be accessed publicly without any fees. It is extremely scalable and allows any Dapp to intervene, promoting the prosperity of the entire ecosystem.
The protocol does not impose costs on users, nor does it arbitrarily capture value from one set of users to benefit others. The source of the cost is mainly shared with the team that develops the Dapp on the project and uses the fund pool application. Maximizing the interests of users is also the consistent aim of the team.
Decentralized governance is used to integrate updates into the base protocol in a continuous and secure manner without interrupting higher level processes.
0x combines the advantages of centralization and decentralization. Orders are processed under the Off-chain chain and settled on the On-chain chain. Resources are saved, speed is increased, and the possibility of hacker attacks is reduced. It makes the whole system more secure and protects the privacy of users and the security of transactions.
0x can simplify the transaction between ERC20Token. Everyone can use 0x as the backend to realize a decentralized exchange. Distributed nodes can ensure the decentralization of the protocol and increase the trust of users.
At present, there are already a large number of projects based on 0x to realize decentralized transactions. The 0x project is in good condition, and the application ecology based on 0x is gradually being established. Judging from the number of fans on twitter and reddit, the 0x project has received a lot of attention from users.

Run mode

The ZRX protocol adopts two order modes in the transaction process:
1. Point-to-point order: The order is filled by the buyer and the seller to ensure safety and point-to-point transmission, but the application value is not great and requires mutual trust transactions between people.
2. Public broadcast order: A decentralized exchange based on the 0x protocol, maintains orders by passing messages between buyers and sellers, and realizes peer-to-peer transactions. Use smart contracts to realize automatic transactions, eliminate third-party intervention, and ensure security and privacy.
The 0x protocol is open source, so any decentralized application can be accessed publicly and used through ports for free. Decentralized applications built on the 0x protocol IQ can access the public liquidity pool and create a pool of funds 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 a standard open source protocol, common block creation, and interoperability of transaction functions in distributed applications. Decentralized applications based on the 0x protocol can enter public liquidity pools, or create their own liquidity pools, and charge a certain fee.

1. Decentralized governance
Decentralized organizations use tokens to represent ownership and guide their governance logic. Decentralized organizations leverage the 0x protocol to seamlessly and securely trade ownership of startup funds.
2. Accurate prediction market
The decentralized prediction market platform will generate a collection of tokens according to the financial risks contained in the events in the real world. Using the 0x protocol, these tokens are allowed to be traded instantly.

3. Stable Tokens
The successful construction of new economic structures such as StableCoins depends on the support of efficient liquidity markets. The 0x protocol can effectively promote the underlying economic mechanism, which is conducive to the stability of tokens.
4. Decentralized lending model
Efficient lending requires the support of a liquid market, providing investors with a convenient platform for buying and reselling borrowed goods. Using the 0x protocol enables a self-organizing ecosystem for borrowers to efficiently determine market prices for all outstanding loans.
5. Fund Management
Decentralized fund management can effectively limit 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 ensures that it adheres to security constraints.

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