What’s the infrastructure for the next iteration of the internet?
In this recent time of Web3 conceptualization, where the ride-write execution is implied in the web’s future, the constant need for privacy and ownership of data can’t be overemphasized.
However, the substantial divergence of Web3 from its predecessor(web2) can be aimed at decentralization. Apps no longer run on a single server/store user data in a single database instead, Web3 apps are built on decentralized networks of countless peer-to-peer nodes(blockchain). These apps are known as Decentralized apps(Dapps), just as you often hear among web3 zealots.
The charisma of web3 is directed to its decentralized nature, where the value would be controlled and owned by the users rather than intermediaries like Google, Apple, or Facebook governing sections of the internet. This revolutionary innovation of the internet spun a lot of economic value. Good evidence of this is in the tokenization of assets and securities, some with speculating supply and demand forces due to price action. This revolution process generated a liquid trillion-dollar economic value.
Thanks to 0xproject on embracing the concept of Decentralization in the exchange of tokenized value, which has proven to be the future of consensus and brings the end of centralization.
“Decentralized governance is the ultimate utility for creating the next generation of the internet” Brent Oshiro.
Suppose the future of the internet relies on the core concept of Decentralization. In that case, there is an ultimate need for open and permissionless platforms with a universal standard for the exchange of value. This proves to be an easier route for pivoting developers and businesses to build web3 apps that permit the decentralized exchange and scale of tokenized value across different blockchains.
0x the infrastructure behind web3 tokenized exchange of value.
“Most users will use their preferred wallet for swaps and 0x will just silently execute the trades in the background” said Cinneamhain Ventures partner Adam Cochran his tweet. Indeed, this is the end goal of the 0x project, to create a flawless Web3 infrastructure governed by the community.
The efficacy of the web can be attributed to its unowned nature, no company nor organization can claim ownership of it while a few organizations may determine the structure of the internet. Developers use a general consensus algorithm to build upon it, Neglecting these standards would result in a contrasting and disconnected internet. Just as HTTP is the connection layer or common standard in today’s Web(Web2), which enables value to flow between servers and browsers Likewise 0xproject, firmly building the foundation of the decentralized exchange protocol(Web3).
The tremendous adoption of 0x is evident in the tokenized exchange of value across all integrated chains. Thanks to decentralized governance, $ZRX token holders have a unique influence over the governance of the Web3 infrastructure. For the purpose of this Content, I would neglect the Financial metrics and stick to the Project metrics of 0xproject.
Into the 0xproject protocol
0x project launched in 2017, pivoting from being its own order book protocol with low liquidity to becoming an API aggregator that Defi apps can integrate across various chains. It successfully eradicated the problem of each app being incapable of bootstrapping its own liquidity, A unique feature is access to other liquidity that other aggregators don’t, through their own order-book but also private liquidity pools.
The hottest Defi killer is the new Request for Quote system(RFQ), introduced with the latest 0x v4 protocol. The RFQ system is a catalyst in the growth of Defi as it allows professional market makers to bring CEX liquidity directly to DEX users to support great pricing for medium and large trades. it’s an all-around gamechanger for OTC traders, MM(market markers), 0x API integrators, and the future decentralized exchange at large. Blake Henderson a now ex-Product manager at 0x, gave an in-depth analysis of the content: Growing Defi with the help of professional market makers.
Who actually uses 0x?
Perhaps, you are likely wondering “those sounds like great features but who actually uses 0x?” The answer is, most probably you do.
0x powers both the interactions(Demand) and Liquidity source(Supply) of Defi. 0x is used by Matcha, MetaMask, ShapeShift, Zapper, Defi Saver, and many other wallets and aggregator protocols. 0x API/protocol can’t cease to advance the standards to welcome more 0x API integrators to the ecosystem, especially with the use of the powerful 0x protocol V4.
0x V4, the game-changer
The launch of 0x V4 as the most efficient version of DEX protocol has attracted more competitive liquidity from professional market markers, saving up to 70% in gas for RFQ liquidity and 10% for limit orders.
0x API pays you positive Slippage: The latest V4 protocol says “No more hidden fee” on Web3. As prices and sizes of trades increase, the likelihood of your positive slippage on at least one trade approaches 100%. Most traders ignorantly give up this positive Slippage to other DEX protocols, abstaining from the Positive Slippage gains, Perhaps they get flattered with quote prices while neglecting the better execution price factoring the Positive Slippage. To gain a better insight into this,0x inspected over 700k 0x API trades to know how often this occurs and the impact, this is the Twitter thread to the respective data. 0xblog also supplied an in-depth content on how RFQ protects users from MEV-induced slippage.
0x v4 is also offering a Plug and Play liquidity i.e Pluggable liquidity(PLP). This enables custom on-chain liquidity pools to be plugged via a standard interface prior to integrating other Liquidity sources. No need for Liquidity providers to be sandboxed.
Currently, it is cheaper to trade on uniswap and Sushiswap using 0x V4 protocol. 0x redefines the possibility of Defi by facilitating Defi legos(borrowing, debt repaying, providing liquidity) to be infused natively into the context of trade. This enables the possibility of providing liquidity to a pool with any arbitrary token, swap of LP(liquidity Pool)token, collateral on Compound/Aave is also possible.
0x Protocol v4 NFT swap support is now live on Ethereum mainnet! . NFT swap support on other 0x integrated chains is launching very soon. 0x has laid the foundation, for the building of the next generation of fully decentralized and interoperable web3 NFT apps/marketplaces with enough possibilities like this:
Flexible Modular Architecture: 0x places Web3 in flexible hands: Special thanks to the 2362 unique holders that showed up to support the upgrade proposal, $ZRX holders can now govern the specific features of the protocol via the ZEIPS.
Order optionality: Nfts would have an option of leaving the user’s wallet depending on when the order is filled, thanks to the Off-chain order which comes with free listing while the Indexable/discoverable orders emit orders that are indexable by subgraphs with its “pre-sign” functions.
Gas optimized: 0x V4 is now the most affordable protocol to ever swap Nfts on Ethereum, it is 41% cheaper to use than other NFT protocols, this is due to the optimized gas efficiency of the contracts.
Collection orders: With 0x protocol V4, Users can now sweep gas floors of a collection with even more gas efficiency.
More token standards: 0x protocol is adding a lot of flexibility to Web3 with its off-chain order feature. With 0x V4 users can now swap(buy and sell) all major token standards like ERC20, ERC721, ERC1155, and many more.
Macro-Adoption and Ecosystem growth
0x protocol volume has been up only despite the macro-economic condition of the market,, 0x is the most trusted infrastructure solution for businesses building decentralized exchange functionality into their apps.
Even when the volume of the protocol seems opaque, Most people can probably easily figure out the volume of Uniswap, Sushiswap, or a CEX. But most people don’t realize the volume of 0x. In fact, with over $157 billion in volume exchanged across 43M+ trades and 0x remains the most expansive ecosystem of integrators.
Feel free to visit the 0x analytics dashboard to further explore the growth of the 0x network. 0x has been grinding more and capturing market share.
Ecosystem expansion to non-EVM chains: 0x partnering with Pyth indicates, that there is a possible non-EVM future for them as well. Pyth Network is one of the biggest data providers in the space but is heavily focused on the Solana ecosystem.
Just as Game recognizes game, Coinbase partnered with 0x to power their new social marketplace for NFTs.Thanks to the latest gaseless 0x Protocol, Coinbase now provides better ways to discover, buy, sell, and connect around NFTs at the lowest transaction costs for their users.
0x Labs joins Greylock’s esteemed portfolio of companies, after raising $70M Series B led by Greylock to continue expanding Web3’s core exchange infrastructure. Indeed, this is a good start in onboarding the next 100x wave of users, businesses, and institutions as 0x Labs continues expanding its team and products.
Nonetheless, I’m as well excited about 0xpo Summit 2022 which will be on November 3, 2022, in San Francisco.
The 0x Mission remains: To Build a Tokenized World Where All Value Can Flow Freely.
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