0x (Ethereum) [Part 3 of 4] (Significance of it)
The basic idea and the mechanism of the 0x exchange have been discussed in the last two posts. This is the Ethereum blockchain based a leading exchange treated as a decentralized cryptocurrency exchange. I would like to cover this exchange with some details in this series. So this is the third part on this topic and I would like to share the significance of this decentralized and specialized crypto exchange on the ETH network.
As the exchange is on the ETH network, 0x is available in its interoperability with other Ethereum-based protocols and applications. This means that assets traded on 0x-powered DEXs can easily interact with other DeFi protocols like lending platforms, decentralized autonomous organizations (DAOs), etc. By pooling liquidity across multiple DEXs and relayers, 0x creates a facility for users to access deeper and more liquid markets. This is a very good opportunity for users as it reduces slippage and ensures that users can execute trades at fair & competitive prices.
This is completely different from centralized exchange. In a centralized exchange, the Central body controls users' funds and acts as custodians of assets. But 0x operates in a trustless and decentralized manner. Users retain full control over their assets at all times. This is the beauty of all DEXs. Here trades are executed directly on the blockchain without the need for any middle or central party.
0x is completely decentralized and governed by a decentralized autonomous organization (DAO) called the 0x Community. ZRX token holders have the power to vote on protocol upgrades, improvements, decision-making, changes, etc. In that way, the protocol remains responsive to the needs & preferences of its whole users.
~ Regards,
VEIGO (Community Mod)
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