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Review on 0x by Bin Laden
The 0x Project is closer to a decentralized cryptocurrency exchange than a…
The 0x Project is closer to a decentralized cryptocurrency exchange than a centralized one but even then, it has notable differences. 0x addresses the main issues with decentralized exchanges: they are expensive, slow, illiquid, and can’t be operated with each other. To operate an order book on the blockchain, each adjustment or new order goes via the blockchain, meaning that everything is held to block times. This also results in network transaction fees at every interaction.
Pros
- 0x is an open protocol that is designed to offer a decentralized exchange as part of the Ethereum blockchain. 0x is made using a protocol that involves Ethereum smart contacts that allow those around the world to run a decentralized exchange. When Warren and Bandeali co-founded the 0x Project in October of 2016, they did so in hopes of a world that allows for every asset’s representation as part of the Ethereum blockchain. Ideally, the included assets would have everything from digital game items to stocks to gold and fiat currencies. With so much tokenization, there will be thousands of different types of tokens, requiring a trustless exchange for users. While the co-founders appreciate the developments of decentralized exchanges, they saw an opportunity for improvement. With 0x, they hope to address the inefficiencies of decentralized cryptocurrency exchanges as well as the inability of various exchanges to work together.
Cons
- Bandeali used to be a fixed income trader with DRW after he studied finance at the University of Illinois, Urbana-Champaign. Among the other team members, you will find blockchain engineers, software engineers, graphic and product designers, end-to-end business strategists, and people with other skills. The advisors for the project founded or work at companies such as Polychain Capital, Coinbase, and Pantera Capital.
