by Lumai Mubanga
Almost all cryptocurrency online companies offer some trading platforms for users. Take for example Kraken and Binance. These are well-established global companies, with established global markets, that assist thousands of traders each day. As more and more assets become tokenized, there has been a corresponding increase in platforms that specialise in the exchange and transfer of tokens from one platform to another. This is were the OX protocol finds its application.
Described as a “new” way to trade and transfer cryptocurrencies across the globe, this protocol has been built to support Ethereum based transactions particularly transactions involving ERC20 tokens between one user to another. This is designed to promote the security of transactions, feeless, and trustless. Leveraging on the smart contract technology, its speed of delivery is quick and efficient. Another co focus s the elimination of all intermediaries like brokers and banks, making it really decentralised.
In order to use this platform, you need to open a crypto wallet that uses ethereum. One example is the local coin swap. Another ethereum based Exchange wallet is Coinbase. User is encouraged to do a little bit of personal research to make an informed decision.
So, how “new” is the new way the Ox protocol work with regard to the exchange coins? If you know, the person you want to trade with, all you need is to send an Ox order via messenger or email. Then, all they need to do is accept the order and execute. Basically, this offers some kind of offline solution in addition to the fact that the designers want users to create their own exchange platforms on the OX architecture. The solution offers another option – Ox relayer.
Relayers are market places that connect sellers and buyers, basically trading places. Anyone is free to post or buy orders. Each order contains all the details to facilitate a transaction. When all the required details of the transactions are met, the trade is done and closed.
For a trade to be fully executed, a taker (the address that accepts the order and fills it) must fulfil the order by submitting the maker’s (the address who created the order) signature along with its own to the decentralized exchange’s smart contract. In compensation for facilitating this exchange, a relayer is paid a fee in 0x’s native currency.
There are many Relayers on the web users can choose from. Notable among the relayers available today are Token strove, a smart market for digital collectables, Token Mum, Token jar and many more. Although it is described as “new”, there are already companies providing similar services such as Ether Delta, iDex, Maker Market (now Oasis Dex) and Shapeshift.
The main thrust of this protocol is its ability to giver users potential to create their own exchanges, trade on Ethereum based tokens freely without charge, and remain an open protocol.