Cons and Pros of 0x

In our beginner’s guide to 0x, we have explained how it is a decentralized exchange meant for the Ethereum blockchain, meant to facilitate easy exchange of ERC-20.

It also serves as an easily usable platform for both smart contracts and dApps, both blockchain tools the Ethereum blockchain is particularly known for. While this is a great concept that is able to offer a number of plus points in its favour, it naturally has some cons as well.

In this article, we will list out some of the major pros and cons of 0x (pronounced zero-X) so that crypto and blockchain enthusiasts can make informed decisions. Having a thorough understanding of the pros and cons of a certain platform or coin is after all, imperative for one to understand if it would be a good fit for his or her needs.

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Pros of 0x

1. Listed in Several Decentralized Exchanges

0x, which aims to make decentralized exchange as easy as possible, has found many takers among the various decentralized exchanges of the crypto world. This has helped to drive adoption of both the protocol as well as its cryptocurrency ZRX.

2. Innovative Concept

As explained in our beginner’s guide to the same, the concept that underlies the 0x protocol helps to realize the goal of decentralization in the crypto world by basing it on the precepts of blockchain technology.

At a time when concerns about centralisation in the cryptocurrencies and blockchain networks are becoming rampant, 0x brings in a very innovative concept to tackle the issue.

3. Feeless Transactions

Of the many benefits that a decentralized exchange can enjoy over centralized ones is that it does not charge a separate fee that could be heavy on the pocket.

Instead, a user just has to pay a transaction fee to the relayer in terms of ZRX coins and the required gas amount to Ethereum blockchain. Besides that, no extra fees are charged.

4. Credible and Functional Protocol, Already Running dApps

The 0x protocol has already managed to host dApps as well known as the prediction marketplace Augur. Dharma and dydx are other examples of dApps run using the 0x protocol. The fact that it has been running dApps successfully points to its credibility as a protocol.

Cons of 0x

1. Restricted to The Ethereum Blockchain

The 0x protocol is one that was designed exclusively to be of use to the Ethereum blockchain and ERC-20 tokens run within it.

Now that Ethereum is also facing competition from emerging networks like NEO and the crypto world is seeing increasing popularity of various kinds of blockchain networks beyond Ethereum, this characteristic of 0x may prove to be an immensely restrictive factor.

In order to grow and develop instead of stagnating, it is imperative for 0x to move beyond just Ethereum and design solutions that are more universally applicable.

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2. Has Not Managed To Make A Dent On The Reputation of Centralized Exchanges

A large chunk of the top cryptocurrency exchanges are centralized, including Binance, which leads in terms of per day trading volume.

Now, the 0x protocol has still not managed to make a dent in the business or credibility of these exchanges, despite its advantages in terms of lower fees or less of downtime issues.

In order to succeed, it is essential for 0x to translate its pros from just being plus points in paper to a practical edge over centralized exchanges.

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