Imagine a future in which more services than you could dream of are tokenized. Stocks, online services and platforms are represented and traded as online coins, all managed and moderated through a decentralized framework. This is the future that the 0x protocol aspires to make a reality.
Part of the ambition of 0x is their wish to heavily cut back on gas prices and network bloat. What does this mean? In a word, efficiency.
“Gas” is essentially the name for a fee that is paid in Ethereum token. The less gas that is spent essentially means the more money and time that is saved and preserved (not lost in fees). Gas is paid to those who manage to transfer information reliably and securely throughout the blockchain as well as miners. A reduction in this would also reduce network bloat, which is especially good.
Less Network Bloat Means a More Efficient Cryptocurrency System
The larger and more crowded any blockchain becomes (generally due to more users creating more traffic and more transfers), the slower and laggier the system becomes. Thus the term network bloat. This is a growing concern in recent years as cryptocurrencies are surging in popularity these days. Many companies are working feverishly to solve the impending issue of too much traffic.
How Does 0x Plan to Solve the Problem of Ever-Increasing Traffic on the Blockchain?
To put it in other terms, the contracts or deals are settled on the blockchain but the actual exchange of information and the funds themselves is managed off chain. This is how 0x reduces lag on their system. With delegating the actual relay onto another framework, network bloat is reduced significantly.
No Middleman Equals More Control
This system will allow traders to trade tokens without the typical middleman aspects of centralized formats, giving both parties more direct control over the transaction. Users are given the ability to sign and confirm orders directly on the blockchain giving them a less passive and more active role in how their funds are sent and received.
One very neat aspect of 0x is the ability for relayers to collect a fee. Various parties like Ethfinex, Radar, Pardex, OpenRelay and several others can help broadcast orders to help expedite the process. As a result, they receive a small compensation for every order they help transfer off of the main 0x chain.
Attracting and Supporting Crypto Based Services
But what is perhaps the biggest advantage of the 0x protocol is how they allow startups and aspiring crypto programmers to help them develop and then host their own tools. 0x protocol is a java based program for building applications that are centered around bringing more crypto based services or tools to the web.
With their protocol, aspiring programmers who have struggled to get their foot in the door will now have a way in. Several people have already used this protocol as the basis for their applications or smart contracts. This puts the world of crypto in a far greater place than it was a few years ago when there were scarce resources available for such programmers. Maybe the next big crypto based application will be built using the opportunities provided by 0x and their open source software.
Decentralizing in Many Ways
Ultimately, 0x helps mark a new moment that is the beginning of greater decentralization for blockchains across the board. Other aspects of trading 0x is decentralizing include loans, prediction market platforms and fund management. Every aspect of typical crypto trading has been taken into consideration with a fine tooth comb so that 0x can guarantee a trading experience that offers the benefits of decentralization in as many aspects as possible. This is more than just a trading platform, it is an economic ecosystem that is truly thinking outside the box when it comes to decentralization.
Whether you are a miner, a programmer, a relayer, or a simple trader, there is a lot that 0x offers.