0x software is created to allow users to create crypto assets that can represent anything which effectively allows us to tokenise anything. This can include tokenises physical things like real estate to virtual things like in game add-ons and even tokens that can represent other crypto assets.
The benefits of tokenising everything means that the token can act as the contract of ownership of an item, rather than the old paper contracts. You don’t need a third party to keep them safe, they can be transferred to new owners quickly and digitally around the world. Allowing us to trade assets peer to peer and avoid middlemen in transactions.
0x is linked to the increasing DeFi protocols that are quickly expanding in crypto. For this, it’s built on to of the Etheruem blockchain and has its own customer crypto called ZRX.
What Is 0x Protocol
Using 0x users can create a crypto market for anything in the real world, this allows you to buy and sell anything on the 0x software. With any market, there are 2 types of users needed on the system the makers and the takers. Makers are users that are placing orders on the order book, bidding for a price and waiting for this to be matched. Takers are those that place orders which are instantly matched on the order book.
When an order is executed 0x will use a smart contract on the Ethereum blockchain to transfer the tokens between the makers and the takers.
As 0x allows people to create markets for anything then ZRX is used to incentivise users to host and maintain order books on these markets. When traders buy and sell on the market the fees will be paid to 0x users in the form of ZRX.
Holders of ZRX will be able to vote for changes on the software and therefore act as the governance system for the protocol.
Learn About 0x
Learn more about 0x on Coinbase.
Originally published at https://paulund.co.uk.