0x: deMystified (V2)
Decentralised exchanges and the technology behind them is one of the hottest topics in the blockchain and cryptosphere of which 0x is the most talked about.
The acquisition of Paradex by Coinbase is a great sign that decentralised exchanges and in particular 0x are getting more and more important.
Note: This article is based on the soon-to-be-released V2 of the 0x protocol.
Terminology
Knowing the following will help you better understand this article:
Relayer: In 0x terminology, an exchange is called a relayer. Relayers have some big differences with exchanges that I will be describing further in this article.
ERC-721: Is a somewhat new token standard on the Ethereum blockchain. In ERC-721, each token is completely unique and non-interchangeable with other tokens. They are called Non-Fungible Tokens (NFT).
Maker: A user that creates an order
Taker: A user that browses the orders and executes and order
What is 0x?
0x is an open protocol for trading standard tokens (ERC-20, ERC-721, etc.) on the Ethereum blockchain. It is designed to be used in two main ways:
- Point-to-Point exchange of tokens: Allowing two parties to directly exchange tokens…
