0x
Symbol
ZRX

Descrption:0x is an open, permissionless protocol allowing for ERC20 tokens to be traded on the Ethereum blockchain.

60
evaluation
Information
WebSite https://0xproject.com/
GitHub 0xProject/0x-monorepo
Update Date 2018 Sep 03 08:09:25
Market
Circulating Supply 539,972,800
Total Supply 1,000,000,000
Max Supply 0
Price $0.6079376
Volume 24h $17,713,038
Market Cap $328,269,760
Change 24h -13.11%
Update Date September 26th 2018, 2:07:31 am

0x: An open protocol for decentralized exchange on the Ethereum blockchain

v1

Principle and design goals

Blockchains have been revolutionary by allowing anyone to own and transfer assets across an open financial network without the need for a trusted third party. Now that there are hundreds of blockchainbased assets, and more being added every month, the need to exchange these assets is compounding. With the advent of smart contracts, it is possible for two or more parties to exchange blockchain assets without the need for a trusted third party.
Decentralized exchange is an important progression from the ecosystem of centralized exchanges for a few key reasons: decentralized exchanges can provide stronger security guarantees to end users since there is no longer a central party which can be hacked, run away with customer funds or be subjected to government regulations. Hacks of Mt. Gox, Shapeshift and Bitfinex have demonstrated that these types of systemic risks are palpable. Decentralized exchange will eliminate these risks by allowing users to transact trustlessly - without a middleman - and by placing the burden of security onto individual users rather than onto a single custodian.
In the two years that have passed since the Ethereum blockchain’s genesis block, numerous decentralized applications (dApps) have created Ethereum smart contracts for peer-to-peer exchange. Rapid iteration and a lack of best practices have left the blockchain scattered with proprietary and application-specific implementations. As a result, end users are exposed to numerous smart contracts of varying quality and security, with unique configuration processes and learning curves, all of which implement the same functionality. This approach imposes unecessary costs on the network by fragmenting end users according to the particular dApp each user happens to be using, destroying valuable network effects around liquidity.
0x is an open protocol for decentralized exchange on the Ethereum blockchain. It is intended to serve as a basic building block that may be combined with other protocols to drive increasingly sophisticated dApps. 0x uses a publicly accessible system of smart contracts that can act as shared infrastructure for a variety of dApps, as shown in Figure 1. In the long run, open technical standards tend to win over closed ones, and as more assets are being tokenized on the blockchain each month, we will see more dApps that require the use of these different tokens. As a result, an open standard for exchange is critical to supporting this open economy.

Technology implementation

Consensus mechanism

Accounts and transactions

Figure 2 presents the general sequence of steps used for off-chain order relay and on-chain settlement. For now we ignore a few mechanisms that will become important later.

Figure 2: Off-chain order relay, on-chain settlement diagram. Gray rectangles and circles represent Ethereum smart contracts and accounts, respectively. Arrows pointing to Ethereum smart contracts represent function calls; arrows are directed from the caller to the callee. Smart contracts can call functions within other smart contracts. Arrows external to the Ethereum blockchain represent information flow.
1. Maker approves the decentralized exchange (DEX) contract to access their balance of Token A2. 2. Maker creates an order to exchange Token A for Token B, specifying a desired exchange rate, expiration time (beyond which the order cannot be filled), and signs the order with their private key. 3. Maker broadcasts the order over any arbitrary communication medium. 4. Taker intercepts the order and decides that they would like to fill it. 5. Taker approves the DEX contract to access their balance of Token B. 6. Taker submits the makers signed order to the DEX contract. 7. The DEX contract authenticates makers signature, verifies that the order has not expired, verifies that the order has not already been filled, then transfers tokens between the two parties at the specified exchange rate.

Smart contract system

The exchange protocol is implemented within an Ethereum smart contract that is publicly accessible and free to use (no additional costs are imposed on users beyond standard gas costs). It is written in the Solidity programming language and contains two relatively simple functions: fill and cancel. The entire contract is approximately 100 lines of code and it costs approximately 90k gas to fill an order.

Cryptography

Distributed storage protocol

Cross-chain and exchange technology

Special technology

Economic model and incentive

Cryptoeconomic protocols create financial incentives that drive a network of rational economic agents to coordinate their behavior towards the completion of a process [4,17,18]. While 0x is fundamentally a network protocol used to facilitate signalling between buyers and sellers (rather than a cryptoeconomic protocol), it is intended to serve as an open standard for dApps that incorporate exchange functionality. Establishing and maintaining an open standard is a coordination problem that adds operational overhead for all contributing parties; coordination can be especially challenging when each party has different needs and financial incentives. Protocol tokens can align financial incentives and offset costs associated with organizing multiple parties around a single technical standard. While aligning incentives around adoption is useful, protocol tokens can be used to address a much more challenging issue: future-proofing a protocol implemented within an immutable system of smart contracts via decentralized governance.

Governance mechanism

0x will be deployed to the Ethereum blockchain with a fixed supply of protocol tokens that will be issued to partnering dApps and future end users. Protocol tokens will have two uses: for market participants to pay transaction fees to Relayers and for decentralized governance over updates to the protocol. Decentralized governance will be used to securely integrate updates into 0x protocol according to the process shown in Figure 4. Initially, a simple multi-signature contract will be used for decentralized governance until a more sophisticated DAO is developed. 0x protocol and its native token will not impose unecessary costs on users, seek rent or extract value from Relayers. The protocol’s smart contracts will be publicly accessible and completely free to use. No mechanisms will be put in place to benefit one group at the expense of another.

Applications

Contributors

No contributors information for the version. to see perfessional version!

Comment

comment/score
Whitepaper similarity
Rank Blochchain Similarity
1st

Loopring
LRC

30.926661919999997%
2st

Gifto
GTO

28.123340000000002%
3st

Pundi X
NPXS

24.629516000000002%
4st

SmartCash
SMART

23.6052461111111%
5st

Status
SNT

22.938554%
Related blockchains

No analysis results for the version. to see perfessional version!

Code similarity
Rank Blochchain Similarity
1st

THEKEY
TKY

5.401199999999999%
2st

iExec RLC
RLC

5.308800000000001%
3st

True Chain
TRUE

4.1708%
4st

ChainLink
LINK

4.1082%
5st

Request Network
REQ

3.8028%