Bitcoin Global News (BGN)
October 18, 2018 -- ADVFN Crypto NewsWire -- With the recent news about ZRX’s addition to Coinbase, a recap of its utility bears mentioning.
A fair amount of beginners to the Blockchain industry look at ZRX, sitting at about 22nd place on Coinmarketcap and think it is just another Cryptocurrency to speculate on.
The fact is, they could not be more wrong.
To kick things off, ZRX is a utility token and not truly a Cryptocurrency coin. Its usage is essentially two fold. First, like Ethereum’s Gas, ZRX allows users of the overarching 0x protocol to pay related trading fees on the network. Second and perhaps more importantly, ZRX holders can influence the future developments of the 0x protocol. In other words, ZRX tokens count as votes for the network’s future, thus indicating it runs on decentralized governance.
Related to all of this, it is important not to get convinced that this token runs alone, on its own network. In reality, it is still dependent on the ERC20 standard and therefore basically exists as a sidechain to the Ethereum blockchain. Therefore if the Ethereum network runs into serious trouble, so does ZRX, though with the network’s entrenched value in so many existing projects, this does not seem likely to happen.
With all of this, it may be said to be easy to see where ZRX’s internal value lies, relative to the network that it works on. Still, the external value appears to be conspicuously missing from this conversation.
The easy answer to this is that for the most part, any external value remains to be seen. If you are not quite sure what we are speaking about when we mention external value here, just think about widespread adoption.
How do we convince a wide number of businesses to expect any product?
It has to be meet some need for them that existing solutions do not meet, at least, in most cases. In the case of ZRX, this would mean that the 0x protocol would need to be adopted by businesses, outside of the Crypto space.
Based on current news, this has yet to happen. Even so, with Coinbase’s support, perhaps further adoption is closer than it looks.
By: BGN Editorial Staff