Picture this. You want to buy cryptocurrency, but don't trust the centralized exchanges like Coinbase. So instead you build your own open-source exchange on the Ethereum blockchain. To thank you for your effort, you receive some ZRX tokens, which are like Bitcoins but based on Ethereum. Now you just need a ZRX price prediction to figure out what to do with it!
ZRX is the 0x protocol cryptocurrency based on Ethereum. It is wholly open-sourced, like the Craigslist of crypto.
What Is ZRX?
You know Bitcoin. You know Ethereum. But have you heard of the unique Ethereum token called ZRX? It's unique because it operates on the decentralized 0x protocol. Also, ZRX has a very limited use-case, which makes ZRX price prediction a little tricky.
To understand ZRX, you need to understand Ethereum and the concept of smart contracts. But before you learn that, think for a moment about how a centralized exchange works.
For example, look at Bitcoin. If you want to buy BTC, you need to open an account on Coinbase or some other centralized, for-profit exchange. They control your access, set spending limits, and charge hefty fees to purchase coins and transfer them to your wallet.
They're also vulnerable to hacking, corruption, and outright theft. Ethereum hopes to change all that.
So you want a ZRX price prediction? First off, get rid of any preconceptions that blockchain means cryptocurrency. It doesn't. Instead, it's a revolutionary way to decentralize transactions electronically. Money is just one aspect of that. And Ethereum is another.
Thanks to Ethereum, you can use a blockchain to record any transaction, from real estate sales to shares to voting. Each item is represented digitally as a token. Theoretically, you can store anything as a token on the Ethereum blockchain. Fiat money, your car, your marriage certificate -- anything.
Even the deed to your house can be saved as a token.
Because everything is publicly recorded on ledgers on the blockchain, they can't be forged or hidden. The exchange itself is open for anyone to view.
Ethereum does this by using smart contracts. Those are basically computer codes which record the transaction. They have pre-programmed algorithms where the next step activates when a criterion is met.
For example, the smart contract knows to deposit the funds in the seller's account when a house is sold. Then it transfers the deed to the buyer. It's all there on the blockchain for everyone to see.
The 0x protocol
Next, you should understand what a protocol is. In the world of technology, a protocol is a system of rules which creates a process. And because the Ethereum blockchain contains more than 101,000 different types of contracts, things get confusing really fast. That's one reason a ZRX price prediction is so difficult.
So developers created the 0x protocol, which simplifies smart contracts by grouping them into just a few different types of contract. For instance, the transfer of physical properties such as real estate and gold and the transfer of cryptocurrency and other digital assets.
This makes transactions faster and cheaper for developers. More importantly, it means that people can exchange tokens without the need of a centralized exchange. For example, I could sell you the token for my car, and you could give me the token for $5,000.
The trade happens on the 0x Ethereum blockchain with no intermediaries. And I couldn't rip you off, because the algorithm wouldn't work until you received the car and I received the money.
What's the Point of ZRX?
Because every transaction on the blockchain requires processing power to solve, it costs developers money. We're talking about intense amounts of energy to power servers, and a lot of time spent coding. So the 0x protocol includes a cryptocurrency to pay the developers. It's called an 0x token or ZRX.
So ZRX is a form of cryptocurrency. But there's more to it than that.
Did you know that ZRX also confers voting rights? That sounds weird, but it's true! Let's dive in.
You know what open-source means, right? It means that a group of developers create something which has no proprietary licenses. It's free to all the world to use.
Also, it's open to any developer to join in and work on the project. Linux is one such project. If you've ever used the Firefox browser, then you're already familiar with open-source software. And like most blockchain projects, including Bitcoin, the 0x protocol is open-source.
0x voting rights
Because everyone who works on the 0x protocol receives ZRX tokens as payment for their troubles, they also receive voting rights in the project. If you have 30 ZRX tokens, then you get 30 votes to decide issues relating to the protocol. Developers meet online, and often at developer conferences, to make significant decisions about these things.
As an example, in 2017, a group of developers on the Bitcoin blockchain felt they could make transactions faster and less costly. They argued with the other developers, and then stormed off and "forked" the blockchain, creating a second blockchain called Bitcoin Cash.
Well, the 0x protocol hopes to stop something like that from happening with voting rights.
ZRX Price Prediction
By now you're probably wondering how much a ZRX token is worth. Is the ZRX price prediction good? After all, it must have some value.
By early 2019, a single ZRX token was worth $0.22 USD. That's twenty-two cents. But considering that ZRX had risen from $0 to $0.39 in less than a year before stabilizing at $0.22, that's not a bad return. If it were a penny stock, you would be all over it.
We predict that ZRX can rise up to $0.30 by the end of 2020, and possibly even $0.60 by 2025. However, we don't think it will ever reach a dollar. Its use-case is too narrow, and it's too niche of a crypto to attract large scale investment.
Should You Buy ZRX Tokens?
Want to know a secret? In order for the general public to buy ZRX tokens, they first need to buy Ethereum on a centralized exchange. That defeats the entire purpose of a decentralized 0x protocol, which is why most people don't buy ZRX tokens.
That said, if you do some developer work with the 0x protocol, you'll be happy with your ZRX. However, if you're simply looking for some crypto to own, you're better off with Bitcoin or Ethereum.
Leave ZRX to the specialty developers it was meant for.
Do you have any experience with ZRX or the 0x protocol? Let us know in the comments!