Did you know that with Ethereum blockchain we can tokenize the world? Every asset, from fiat currencies and stocks to gold can be presented as a token on Ethereum.
But there is a problem with that. With tokenization, you can get countless tokens. And these tokens need to be exchanged somehow.
Of course, decentralized exchanges can be used for that purpose, but they are slow and inefficient.
And this is what Ox protocol is trying to solve.
In today’s guide, we’ll take a deeper look at what Ox is and how it works.
What is Ox protocol?
According to its white paper, Ox is:
a protocol that facilitates low friction peer-to-peer exchange of ERC20 tokens on the Ethereum blockchain. The protocol is intended to serve as an open standard and common building block, driving interoperability among decentralized applications (dApps) that incorporate exchange functionality
Will Warren and Amir Bandeali founded the company in October 2016. In December 2017, Ox protocol held its ICO, raising $24 million.
What makes Ox different from other blockchains?
Ox protocol is used for the exchange of Ethereum tokens, and it operates similarly to decentralized exchanges.
However, decentralized exchanges have many downsides compared to Ox. For starters, they are slow and incompatible with one another.
Ox is trying to solve this by creating a standard protocol of orders.
For paying trading fees, you’ll have to use Ox’s own Ethereum token ZRX.
Which projects run on Ox?
Because of its efficiency, Ox protocol is appealing to blockchain-based projects. There is a growing list of companies that built (or will build) Dapps on Ox. Here are some of them:
- OpenANX, which is a DApp of OAX Foundation
- Blocknet, a decentralized protocol that enables the transfer of data across different blockchains
- ChronoBank, blockchain-based project trying to disrupt HR/recruitment/finance industries
Here you can find a list with more projects using Ox protocol.
Ox roadmap: Where are they headed?
On their blog, the Ox team posts regular updates about their plans, improvements, and future goals. One of these goals is focusing more on scalability, which is still a problem for most blockchain startups and cryptocurrencies.
Also, the team plans to upgrade to Ox protocol to use new ZRX token economics.
And, they plan to introduce coordinators, which are the first DeFi liquidity solution that can support competitive prices.
Ox is an exciting project with ambitious plans such as the above mentioned, so it’s worth keeping the eye on its development.
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