Review on 0x by Robiul Islam
Tokenize Everything, Tokenize Your Life.
It is a working protocol that provides a much needed service to many various users on one of the most popular blockchain networks today. In my opinion, decentralised exchanges are likely to be disruptive to their centralised embodiment and gain popularity in the near future. Reck of that it has skin in the game with great working technology, it stands a good chance of becoming a popular choice for its services. However, as it is currently limited to exchanging ERC-20 tokens its future performance is intimately tied to a giant who has red hot competition on the horizon.
Technology: More than funds being held in a individual pool on the exchange that is vulnerable to attack, traders are required to hold their tokens in their own wallets. The Open Order Book is a decentralised order book that is maintained by node relayers. Relayers will keep the bulk of the transactions separate to the Ethereum network to avoid bottlenecking the blockchain.
Processes: Relayers are used in 0x that broadcasts the order they have to the 0x blockchain which functions like mini exchanges of sorts. Trade is done only if the user signs a counter order to complete the transaction.
The smart contracts that 0x is running are not specific to a single application. They are open sourced, their entity can use them to integrate them into their own application or service.
It is not like other coins, it is a protocol that essentially is a set of the smart contract which mainly focuses on transferring tokens issued on Ethereum blockchain from one person to the another, without racking up high fees or time delays.
Updated 5 years ago
Rating has not been changed
After analyzing historical trade logs, team have confirmed that the vulnerability found in the 0x v2.0 Exchange contract was not exploited.
They have patched and re-deployed the entire 0x pipeline from scratch, updated developer tools and packages, 0x Instant, 0x Launch Kit.
Pros
- It is made for the Ethereum network, one of the most successful blockchain networks to-date.
- Credible and Functional Protocol, Already Running dApps.
- It is a working protocol used by over 30 decentralised applications.
- The ZRX coin has a real use case that makes sense.
- Funds cannot be hacked from a central pool as tokens stay in the users’ wallet until the transactions are executed.
- It provides decentralised applications on the Ethereum network with exchange functionality.
- It diverts traffic away from the Ethereum network.
- Token holders and traders will have the right to vote for important decisions on the exchange.
- It removes the security risks of having a single point of failure.
- A large number of project partners and the attraction of venture capital firms to it, interest in the token will grow.
Cons
- The protocol currently only supports Ethereum based assets.
- There is a possibility that the work of the project will fall under the restrictions of the SEC norms.
