In one publication Blog on Friday, 0x Labs Product Manager Theo Gonella, presented the ambitious plans of the protocol Moving towards a promising, albeit technically complicated, horizon of permissive exchanges – seamlessly connecting the growing constellation of viable layer 1 blockchain platforms.
The Ethereum-based protocol is designed as a set of interoperability tools for decentralized exchange of all kinds. We have had great success this year in connecting a network of more than 30 projects built using its API.
Over the course of 2020, as decentralized funding (DeFi) increased, so did the use of 0x: The protocol enabled transactions between DEX and aggregators like Tokenlon and 1 Inch totaling nearly $ 4 billion and generating log fees of nearly $ 400,000 according to 0xTracker.
In the same way, 0x’s native token, ZRX, rallied 280% from $ 0.259 to $ 0.73 before falling 50% amid the decline in the overall DeFi market.
Looking to the future 0x is now planning to implement its vision of inter-chain or cross-chain interoperability.
“While Ethereum is the platform on which most of the tokenized value has arisen in recent years, we believe we are on our way to a multi-blockchain world with a huge network of interconnected websites that are the backbone for the web 3 “. Gonella wrote. “Given our view that the 0x protocol is an open technical standard for P2P sharing, it goes without saying that the standard will expand into new ecosystems as it emerges.”
The contribution presented the growth signals that competing Ethereum chains would have to show for 0x in order to provide development resources. This includes unique digital assets, strong developer communities, and a large pool of end users.
However, Gonella recognized this too String cross functionality and compositing ability are a notoriously difficult subject.
Problems include the portability of packaged assets with different standards across chains. the opportunity cost for users locking their tokens in cross-chain bridges; and the necessary updates to the 0x infrastructure and token economic model, including staking and management.
Despite the complexity of the task Gonella took on an optimistic tone:
“We are experiencing a Cambrian explosion of innovation and creativity that is just beginning.”