0x (ZRX) – All you need to know

What is 0x?

0x is ‘the Craigslist of cryptocurrencies’, where people can come together and trade without the need for a middleman. 0x is a software that anyone can use to create a trading market for a digital asset. The software has its own cryptocurrency, known as ZRX, that’s used to influence 0x’s future.

The idea for 0x dates back to 2016, and an initial coin offering for the ZRX token raised the capital to build it. Now, ZRX is used as a reward to encourage people to set up the liquidity pools that make the software run smoothly, as well as for governance and fees.

How does 0x work?

0x works by creating a marketplace that stores all its transactions on the blockchain. Every time a trade is completed, the smart contract is signed and stored on a publicly available ledger.

0x operates like a website plugin. A developer can use 0x to power an exchange on their app rather than building their own. 0x runs all these exchanges by pooling its resources together, so each exchange can access the main 0x order book to complete trades.

The ZRX token helps the whole operation run smoothly as creating liquidity is important when each individual app might only experience a few trades. ZRX is used to pay rewards to people who introduce liquidity by setting up open orders, and these users are paid a portion of the transaction fees.

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