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