0x overview using the Feynman Technique
This post is one of a series of posts I am writing where I try to apply the Feynman Technique to a number of different crypto token projects. You can find the rest here. None of this should be taken as investment advice. They are just meant to be simple introductions to the projects.
0x allows anyone to create a market to trade other Ethereum tokens without the need of using a third-party. It does this by creating a software program that handles a trade between three different types of people.
The first type is the person who indicates what tokens they would like to trade and for how much. The second type is the person, or entity, that keeps track of these trades. The third type of person in this market is the person who indicates that they would like to trade with the first type.
The key part in this market is the second party that keeps track of what trades have been created. Many different people or entities can fill this role. They have the ability to choose how much it costs others to participate, decide whether or not to broadcast trades publicly or privately, and set up any other restrictions they decide.
The 0x token is used to pay this party their fees. The token can also be used to vote on changes and improvements to make to the overall system.
Since 0x is open and available to anyone in the world with a computer and the internet, there can be many different people who fill this role. This creates competition and therefore should provide token traders with lots of different options depending on what they are looking for.