What is 0x? Everything You Need to Know

What is 0x

Having trouble understanding what is 0x and how does it work? You have landed in the right place. You may have heard of 0x while browsing crypto news and stories on the internet. 0x is an open protocol, which is designed to offer a decentralized exchange while being the part of Ethereum blockchain.

What is 0x

0x is developed with a protocol featuring Ethereum smart contracts that allow anyone around the globe to run a decentralized exchange. The team behind 0x believes that people will find numerous tokens from the Ethereum network in days to come and that 0x can offer a trustworthy and efficient way to exchange them. 0x is different from both decentralized and centralized exchanges, coming with the best possible set of features to facilitate modern-day needs.

Who Developed 0x?

0x was created by two smart contract experts: Amir Bandeali and Will Warren, who are currently serving as the CTO and CEO of 0x respectively. Both individuals have expertise in the research and development of smart contracts. Having studied mechanical engineering at UC San Diego, Will Warren started applied physics research at Los Alamos National Laboratory. Amir Bandeali used to trade as a fixed income trader with a diversified trading firm called DRW.

How Does 0x Work?

As already stated above, 0x is a standard protocol on Ethereum blockchain that developers can use to build and run their own crypto exchange. It employs common smart contracts within a shared infrastructure. Its technology is comprised of two strategies: Automated Market Marker (AMM) and State Channels. Automated Market Markers introduce a third party to simplify trades if the price of a digital asset reaches a particular threshold. So, AMM serves as counterparty and executes trades between two parties. State channels perform transactions online, cutting costs that are incurred if the transaction takes place on the Ethereum network.

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