The 0x protocol wants to facilitate exchanges and interoperability between different blockchains

This interoperability protocol aims to expand beyond Ethereum to create a network of interconnected blockchains.

In a post published on the official blog, Theo Gonella, product manager of 0x Labs, illustrated the ambitious and complex plans of the protocol for the development of permissionless exchange: the goal is to seamlessly connect the constantly expanding universe of blockchain layer-1 platforms.

The protocol, based on Ethereum, has been designed as an interoperability toolkit for various decentralised exchanges; this year, for example, it was very successful in connecting a group of more than 30 projects via their APIs.

During 2020, with the boom in Decentralised Finance (DeFi), the use of 0x also grew significantly: the protocol helped to trade nearly $4 billion through DEX and aggregators such as Tokenlon and 1inch, generating, according to 0xTracker, nearly $400,000 in fees.

Similarly, 0x’s native token, $ZRX, grew 280% from $0.259 to $0.73, before falling by 50% as the DeFi market suddenly collapsed.

Looking to the future, 0x plans to bring its vision of interoperability to several different blockchain. Gonella wrote:

„Although Ethereum is the platform on which token value has emerged the most in recent years, we believe the ecosystem is evolving towards a multi-blockchain world, with a vast web of interconnected networks forming the backbone of the Web3. Given our vision of the 0x protocol as an open technical standard for P2P exchange, it is natural that it will expand into new ecosystems as they emerge.“

According to the post, there are several growth indicators that Ethereum’s competitors would need to show to ensure that 0x dedicates development resources to them: in particular, the presence of unique digital assets, a robust developer community and a significant pool of end users is mentioned.

Gonella also recognised that modularity on different blockchains crypto Profit is a notoriously complex hurdle to tackle: problems include porting wrapped assets from one blockchain to another, the opportunity cost for users blocking their tokens in cross-chain bridges, and the necessary upgrades to the 0x infrastructure and economic model of tokens, including staking and governance.

Despite the complexity of the task, Gonella expresses strong optimism:

„We are witnessing a real Cambrian explosion of innovation and creativity, and it’s only the beginning“.