0x is a decentralized exchange protocol that developers can use to build their own cryptocurrency exchanges. The company’s founder refers to his solution as the “Craigslist for cryptocurrencies” in that any developer can build their own cryptocurrency exchange and post it online.
Ox coin orders routing splits up your transaction across decentralized exchange networks to be filled with the lowest slippage possible. Better prices, faster response times, and lower revert rates than any other aggregator on the market
How is OX COIN used?
0x uses common smart contracts over a shared infrastructure. Its technology combines two strategies – State channels and Automated Market Marker (AMM) - that have already been suggested to overcome these problems. State channels take transactions offline, thereby reducing costs that are incurred if the transactions take place on ethereum’s network. AMMs introduce a third party to facilitate trades if the price of a cryptoasset reaches a certain threshold. Thus, AMM conducts trades between the two parties (instead of the parties conducted it between themselves) and also acts as a counterparty. 0x founders describe their system as an “off-chain order relay with on-chain settlement”. “Cryptographically-signed orders are broadcast off of the blockchain, an interested counterparty may inject one or more of these orders into a smart contract to execute trades relentlessly,” the whitepaper’s authors write. The protocol’s innovation lies in relayers, which are used to connect makers with takers. Its token – ZRW – is used to pay fees for use of the relayers.
Consequently, as the volume of orders increases on the exchange, the costs of operating the exchange also balloons. Second, the approach has fragmented users among numerous cryptocurrency exchanges. The distribution of users among these exchanges has resulted in a corresponding fragmentation of liquidity.