0x is an open protocol designed to provide a decentralized exchange as part of the Ethereum blockchain. 0x was created using a protocol related to Ethereum smart contracts that allows running a decentralized exchange worldwide. The team behind 0x strongly believes that you will find thousands of Ethereum tokens in the future and that 0x can provide an efficient and reliable way to exchange them. 0x is designed to be different from both centralized and decentralized exchanges.
Buy 0x directly? Then go to Bitvavo.com/nl/0x† 0x is an open protocol designed to provide a decentralized exchange as part of the Ethereum blockchain. 0x was created using a protocol related to Ethereum smart contracts that allows a decentralized exchange to run worldwide. The team behind 0x strongly believes that you will find thousands of Ethereum tokens in the future and that 0x can provide an efficient and reliable way to exchange them. 0x is designed to be different from both centralized and decentralized exchanges, offering the best possible combination of features.
Who are the creators of 0x?
The co-founders of 0x are Will Warren and Amir Bandeali, the first of which is the CEO and the second the CTO. Both are engaged in smart contract research and development. Warren conducted applied physics research at Los Alamos National Laboratory after studying mechanical engineering at UC San Diego. Bandeali was a fixed income trader with DRW after studying 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 were founded or work at companies such as Polychain Capital, Coinbase and Pantera Capital.
The 0x project is funded by Fintech Blockchain Group, Pantera, Polychain Capital, Jen Advisors and Blockchain Capital and showcases a wide range of interests.
What is the purpose of 0x?
When Warren and Bandeali co-founded the 0x project in October 2016, they did so in hopes of a world that allows any asset to be represented 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 trusted 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 exchange and the inability of different exchanges to work together.
What separates centralized and decentralized exchanges?
Centralized cryptocurrency exchanges are the most common and are run by a single entity, which in turn provides a point of failure. Users of centralized exchanges deposit money directly into the exchange and the exchange then becomes responsible for connecting the buy and sell orders in real time. Coinbase is an example of a centralized exchange. The big risk with centralized exchanges is their vulnerability to hacking or front-running performed by the administrator.
Decentralized exchanges were developed to solve the problem of vulnerability to theft. With this type of cryptocurrency exchange, users retain some control over their funds. Instead of sending funds directly to a wallet sent by one entity, users rely on digital signatures to instantly approve trade orders. Unsurprisingly, this means that centralized exchanges are very fast, but decentralized exchanges are slower. Centralized exchanges also typically have powerful trading and advanced tools and are easy to use.