[0x ($ZRX)](https://0x.org/) is an open protocol enabling developers to build decentralized cryptocurrency exchanges on the [Ethereum](https://www.okx.com/join/BLOCKSTAR) blockchain. It addresses key issues plaguing centralized exchanges (CEXs) and decentralized exchanges (DEXs). CEXs have lost over $1.1 billion to security breaches, eroding user trust, while DEXs suffer from high friction and escalating transaction costs. This guide explores 0x's current offerings and its recently launched Version 3 protocol.
Background
0x was co-founded by CTO Amir Bandeali and CEO Will Warren, supported by a team of blockchain engineers, designers, and strategists. Notable advisors include Fred Ehrsam (Coinbase co-founder) and David Sacks (former PayPal COO).
What Is 0x?
0x is an Ethereum-based protocol powering decentralized exchanges (DEXs). It eliminates intermediaries through smart contracts, simplifying asset transfers while reducing costs. DEXs empower users by removing reliance on hack-prone centralized platforms.
Ethereum’s scalability challenges and fragmented dapp ecosystem prompted 0x’s creation—a solution to improve interoperability and reduce dapp usage costs.
How Does 0x Work?
0x processes orders off-chain via relayers to minimize Ethereum blockchain load and gas fees. Relayrs match orders through public/private order books, broadcasting them for execution. Only finalized trades are recorded on-chain, ensuring user fund control.
Relayers earn fees in ZRX tokens (adjusted in Version 3), though they only facilitate—not execute—trades.
0x Version 3: Key Upgrades
1. Staking ZRX Tokens
- Liquidity Rewards: Market makers receive incentives for providing liquidity.
- Staking Pools: ZRX holders can stake in pools, sharing rewards and boosting market makers’ governance voting power.
2. Liquidity Bridges
- Cross-DEX Access: Integrates liquidity from platforms like UniSwap and Kyber via 0x API, enhancing order fulfillment.
3. Flexible Fees for Relayers
- Multi-Token Fees: Relayers can now accept fees in any Ethereum-based token, improving flexibility and user experience.
ZRX Token Explained
- Utility: Pays relayers, governs protocol upgrades.
- Supply: Capped at 1 billion ZRX, with 50% distributed at launch (team, advisors, developers).
- Staking: Version 3 introduces staking, incentivizing liquidity provision.
- Exchanges: Listed on Binance, Coinbase, Huobi, etc.
- Wallets: Compatible with Ledger, Enjin, Exodus, and ERC-20 wallets.
👉 Secure your ZRX tokens with Ledger Nano X
0x-Powered Products
- 0x Instant: Enables crypto purchases on any app/website.
- 0x Mesh: Global P2P token order book.
- 0x API: Aggregates liquidity from UniSwap, Mesh, etc.
- Matcha: Finds optimal token prices across exchanges.
- 0x Extensions: Enhances relayer trading types.
- 0x OTC: Peer-to-peer ETH token swaps without relayers.
Challenges
- Smart Contract Risks: Multi-signature contracts may be exploitable.
- Liquidity Gaps: Smaller tokens may face order-filling delays.
Conclusion
0x sets a benchmark for dapp security and interoperability while leveraging off-chain scalability. Its applications span prediction markets, sports betting, and beyond, driving decentralized innovation.
FAQ
1. What is 0x’s primary use case?
0x facilitates decentralized exchange development, reducing reliance on centralized platforms and lowering transaction costs.
2. How does ZRX staking work?
ZRX holders stake tokens in market maker pools to earn liquidity rewards and delegate partial voting power.
3. Can relayers accept fees in non-ZRX tokens?
Yes, Version 3 allows fees in any Ethereum-based token, including the traded asset.
4. Which wallets support ZRX?
Ledger, Enjin, Exodus, and other ERC-20-compatible wallets.
5. How does 0x improve liquidity?
Via liquidity bridges aggregating DEX liquidity (e.g., UniSwap) through 0x API.
6. Is 0x secure?
While robust, smart contract risks remain; users must audit interactions.