Tokenization of the economy: 0x protocol (ZRX)

Tokens have many benefits. You can store them securely, without trusting any third party to keep them safe. You can buy and sell them quickly, even internationally. But perhaps most importantly, they allow for the creation of global markets that don’t currently exist yet.

Tokens are unique digital assets that can be owned and stored in a cryptocurrency wallet. Someday, when we buy a house, rather than getting a paper contract, your proof of ownership may be a token, securely stored on a public Blockchain which has a notary’s role, so that anything can be tokenized: starting with money, stock shares, real estate, video game items, anything.

Basically if you can own it, you can tokenize it. But, why is that important?

Tokens have many benefits. You can store them securely, without trusting any third party to keep them safe. You can buy and sell them quickly, even internationally. But perhaps most importantly, they allow for the creation of global markets that don’t currently exist yet.

Let’s look at an example: an user owns a house and he wants to sell it. In the world of tokens, he’s got two options. First, sell his home the traditional way by using intermediaries like lawyers, agents and title companies. This can be slow and expensive. His second option would be to tokenize his house. When it’s time to sell, the owner and the buyer can use a smart contract to securely swap ownership of the token for the sale price of the house. The buyer gets the token representing ownership of the house and the seller gets cryptocurrencies. Cutting out intermediaries and trading assets P2P (peer to peer) would make the sale simpler, faster and less expensive. The seller may get a higher price for his house too, since he can now sell it on a global marketplace where millions of buyers can participate.

To make the vision of a tokenized world come to life, Ox is building the open source infrastructure that will enable frictionless P2P exchange of tokens, ultimately creating a world that is more efficient, transparent and equitable.

Do you think that Ox will be able to create digital representations in all forms?

First let’s answer the following question: What is the Ox protocol?

This protocol is a new way to trade tokens and cryptocurrencies with other people using the P2P system (Peer-to-Peer) so you don’t have to rely on an intermediary like a bank or a broker. All you need is a crypto wallet that supports Etherium, like Coinbase wallet or MetaMask. Let’s look at an example of how Ox works. Say you want to trade an Etherium token for another. If you know who you want to trade with, you can send them an Ox order via instant message or email. Then all you need is accept the trade and it will execute.

Think of it like trading cards with a friend, except it is electronic and more secure. If you don’t have anyone to trade with, you can visit an Ox relayer. Relayers are maketplaces that connect buyers and sellers. There’re like digital bulletin boards where anyone can post a buy or sell order. Each order contains everything needed to make a transaction happen. After you find an order you like, you just confirm it with your crypto wallet and the Ox protocol securely completes the trade.

That’s how easy it is to trade cryptocurrency with Ox.

                                                       Source: relayer.network

Several relayers exist today and the Ox team expects many more to appear over time. Any developer can create a relayer using Ox’s open source software, and relayers can serve and endless number of different communities. For example, gamers might use a relayer to trade in-game items, music fans might use a relayer to buy concert tickets, and businesses might use relayers to buy and sell file storage and processing power. These are just a few examples and there are countless more. 

Just as the internet enabled millions of unique websites, Ox hopes to enable millions of unique global marketplaces. And that could make the global economy more efficient for everyone.

“The way how the tokenization can help to make the global economy more efficente is called: “tokenomics” (Token Economics).”

The Ox token (ZRX)

The Ox protocol is a new way to trade tokens and cryptocurrencies with other people. It’s an open source project, built on the top of the Etherium Blockchain. Because it’s open source, that means that Ox protocol changes frequently. Almost every day, Etherium adds news features and developers write new code for Ox.

So, how does Ox evolve without breaking the project that uses it today?

That’s where ZRX token comes in. ZRX is an Etherium based token that interacts with the Ox protocol. Today, ZRX is used to pay fees to Ox relayers. When you make a trade through a Ox relayer, you pay them a small amount of ZRX. In the future, however, the Ox team plans to use ZRX for an additional purpose. They plan to give people who hold ZRX tokens complete control over how the Ox protocol changes over time. By allowing Ox to adopt upgrades without down time or disruption to markets, relayers and Ox users always have access to the latest technology.

This allows the Ox protocol to evolve publicly over time, guided by a global community of people who are incentivized to improve existing projects, while remaining focused on Ox’s future.

Respecting the market price and ranking of the native tokens of Ox protocol, we can find it in the CoinMarketCap index in the 43th position with the figures that can be seen in the following table below.

Source: CoinMarketCap

 

Since its launching in August 2017, it had an “all time value” of 2.53 dollars achieved in January 2018 and an “all time low” value of 0.1039 in August 2017. Its total supply is 1,000 millions of units and at this moment the circulating supply is higher than 713 millions.

                                         Source: CoinMarketCap and Flipside Crypto

The marker FCAS has a value of 879 out of 1,000 due to factors such as its etherium based technology with off and on chain features that give a fast data transmission via smart contracts, due to its great technical team and its voting system to process upgrades.

“0x protocol and its native token ZRX both are great tools to “tokenize” the economy which is also called “Tokenomics” or “The Economy of Tokens”.

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