0x announces launch of protocol that will allow the exchange of Bitcoin for Ethereum without the use of exchange
The interoperability protocol aims to expand beyond Ethereum and create cross chain functionality
In a recent post, 0x Labs product manager Theo Gonella set out the protocol’s ambitious plans to direct development to a promising horizon: perfectly connecting the growing constellation of layer 1 blockchain platforms.
The Ethereum-based protocol, designed to be an interoperability toolkit for decentralized exchanges of all types, has had remarkable success this year by connecting a network of over 30 projects under construction with its API.
Over the course of 2020, with the Decentralized Finance (DeFi) boom, so did the use of 0x: the protocol facilitated almost $4 billion in solution between DEXs and aggregators such as Tokenlon and 1inch and generated almost $400,000 in protocol fees, according to 0xTracker.
Similarly, the native 0x token, $ ZRX, had a 280% increase from $.259 to $.73, before a 50% drop amid the wider collapse of the DeFi market.
Looking to the future, however, 0x now plans to bring its vision of interoperability between chains.
„Although Ethereum is the platform on which most tokenized value has emerged in recent years, we believe we are moving towards a multi-blockchain world with a vast interconnected network forming the backbone of web3,“ wrote Gonella. „Given our vision of the 0x protocol as an open technical standard for point-to-point exchange, it is only natural that the standard will expand into new ecosystems as they emerge.
The post exposed the signs of growth that Ethereum’s competitive chains associated with exhibiting for 0x to devote development resources, including unique digital assets, robust developer communities and a large number of end users.
Gonella also acknowledged that cross-chain functionality and composability are a notoriously difficult problem, however.
Problems include pattern-packaged asset portability between chains, opportunity cost for users blocking their tokens on cross-chain bridges, and upgrades required for a 0x infrastructure and token economic model, including betting and governance.
Despite the complexity of the task, Gonella set an optimistic tone:
„We are seeing a Cambrian explosion of innovation and creativity, and this is just beginning.