0x is a publicly available as well as standard procedure used for the direct exchange of digital coins or tokens on the Ethereum blockchain. The most straightforward explanation of 0x is that it consists of designing tools and smart contracts that allow programmers to set up their own decentralized exchanges (DEXs), wallets, or trading areas without going through the hassle of starting from scratch.
The main idea of 0x is to make token trading better. Instead of redirecting customers to a centralized exchange that could possibly take their money, smart contracts act as the communication channel thus the trading is done amongst the users. This also means the trades are more transparent, hacking has become less of a threat and the control over the users’ assets is completely out of the question.
With the 0x protocol, developers can add trading capabilities to any application or platform. A good example is when a wallet integrates 0x, and then the users are able to perform a token swap in no time. Moreover, the protocol is designed using an off-chain order relay plus on-chain settlement method, which leads to lowering gas fees and enhancing the speed of transactions.
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The ZRX token is the main currency of the network and is used for governance and fee distribution. The open-source nature of it allows anyone to not only use but also modify the 0x project as per their needs. To summarize, 0x is the foundation of decentralized trading enabling the emergence of a more transparent and effective digital currencies ecosystem not only on Ethereum but also beyond.