Today we will review 0x protocol. it is a protocol and tool for building DEX platforms on top of the Ethereum blockchain allowing peer-to-peer exchange. 0x allows the exchange of assets, crypto-currencies, and much more, 0x is not a decentralized exchange but a protocol followed by DEX.
It has got multiple DEX which is called relays under the 0x platform, these DEX allows trading from ETH to other crypto-currencies and assets, the token used by 0x is ZRX and it believes everything in the future is a token.
0x is really advanced trading protocol and its most relays are really hard to understand and trade on but there are few steps before trading on 0x, which includes setting up wallet, wrapping ETH, unlocking XRX etc, upon the trade page we can view the screen like this.
Install MetaMask from the chrome web store and make sure you have some tokens in your Metamask wallet. Once you have MetaMask installed refresh the page and a confirmation page might appear.
ERC20 tokens built on the ETH blockchain can be added as well, to trade on 0x. You might need to wrap your ETH into WETH which means wrapped ethereum, this token is used for trading on relayers, just simply click on the wrap ETH enter the amount and wrap ETH, it usually approves in seconds, and the same process can be followed to unwrap ETH.
Unlock the ZXR and you are good to trade on 0x, now what relay should you choose to trade? the answer is you can use any relay they all are DEX and built on the same blockchain but these relays are really advanced and might not be suitable for you if you are new into trading, the first three relays might not be suitable as ERCDEX is under development, TOKENJAR and ETHFINEX, might not have a suitable UI for new comers.
0x also allows you to built your own relay/exchange following the protocol and get added in it’s relays, which are built on the 0x platform by different group of developers or companies, 0x is built on javascript & typescript, which are really popular programming language nowadays, allowing developers to build apps, micro services, web applications, amazon web services and even 0x and ETH have some involvement of JS in it, if you are a developer the documentation on 0x really helps you to build your own relay and how you can add unlimited seamless exchange of assets and coins, network liquidity, making and taking orders, this is indeed a good option for developers check it out.
There is not much security associated to talk about on 0x as different relays have different kind of security and privacy options but all of the relays associated with 0x are decentralized and have good liquidity for making exchanges.
