What is Ox Protocol?

What is Ox Protocol?

Ox Protocol (ZRX)

Website

Whitepaper

 

By allowing anyone to own and transfer assets, the Ethereum blockchain has become revolutionary. It has become the host to a variety of digital assets that are being developed every month. Soon there will be thousands of digital assets that are tokenized and move into the Ethereum blockchain. As the token space grows, so does the needs to exchange, it grows to and becomes compounded. The OX protocol comes in here. Ox protocol will act as a critical infrastructure for the token economy by allowing smart contracts to seamlessly and programmatically exchange Ethereum-based assets.

Ox is a decentralized exchange protocol that has raised an undisclosed sum in a bid to serve the growing economy of tokens created on the Ethereum blockchain. In an attempt the decentralized exchanges, OX operates as a non-profit foundation despite the VC funding. The words are according to Ox co-founder and CEO Will Warren. Warren went on to say that they don’t extract any value from anyone who uses the platform. Ox is an open protocol that users can use without expecting any value being charged. People can build applications onto protocol in the manner they please.

What does the Ox project do?

Ox protocol facilitates the exchanges of the ERC20 tokens. Any company and individual can utilize the Ox protocol to operate a decentralized exchange. It enables transactions of ERC20 tokens between one user to another in a secure, feeless, trustless and in a quick manner through Ethereum smart contracts. Ultimately, every asset, including stocks, fiat currency, and commodities can be represented as a token. The main aim of Ox is to allow all Ethereum tokens to be traded efficiently, with no barriers.

Centralized exchanges like Poloniex, GDax or Bitfinex are vulnerable to security failures including being hacked regularly. All exchanges experienced downtime as the cryptocurrency rose. On the other hand, decentralized exchanges are slow and illiquid. Actions like posting, actual trading and canceling of orders require gas to perform and time to confirm, which makes the process dramatically slow. This bloats the Ethereum blockchain.

OX combines strength and avoids the weakness on the Ethereum blockchain in order to provide users with quick and trustworthy services. By having off-chain order relay with the on-chain settlement, it solves the problems in the Ethereum blockchain as all actions are done off-chain. While Ox is a protocol, they also have a product called the OX OTC. This product uses the protocol to showcase the way the Ox protocol works.

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