What is The 0x Project? The Most Comprehensive Guide Ever Written
What is 0x Project?…
0x Project: The Future of Cryptocurrency Exchanges. Cryptocurrencies are all the rage right now and as FOMO spreads far and wide more and more people want to be a part of this economic revolution. However, this is where we hit a snag. In order to join this revolution, people need to go through centralized exchanges which have immense problems of their own.
0x Project: The Future of Cryptocurrency Exchanges
This is why decentralized exchanges and the 0x Project in particular, are so important. In this guide, we will explore how the 0x Project works. However, before that, let’s look at what exchanges, in general, are.
What is a Cryptocurrency Exchange?
Image Credit: Bite my Coin
The exchange serves one of the most critical functions in the crypto ecosystem. It basically acts as a portal between the Fiat world and the crypto world. There are usually two types of exchanges:
- Fiat to Crypto.
- Crypto to Crypto.
Fiat to Crypto
Fiat to Crypto exchanges helps you buy Cryptocurrencies in exchange for Fiat money. Coinbase is a perfect example of this kind of exchange. Coinbase helps you buy BTC, BCH, LTC, and ETH in exchange for Fiat currency.
Crypto to Crypto
Then we have the Crypto to Crypto exchanges. These exchanges help you exchange certain cryptos like BTC, ETH, BCH etc. for other cryptocurrencies. Binance is a fine example of a crypto-to-crypto exchange.
While they do offer pretty valuable services, the problem is that they are all centralized, which makes them vulnerable. This is an extremely risky proposition when you consider the sheer amount of money that these exchanges deal with each and every single day. Let’s look at the 24-hour volume of the top 5 exchanges in the world: