The 0x protocol will surprise a lot of people in the coming months. Thanks to its focus on ERC20 token trading, any platform can use this protocol moving forward. Paradex is one of those exchanges taking full advantage of what 0x has to offer in its current form. This new P2P ERC20 exchange will launch very soon.More specifically, it will seemingly focus on off-chain trading, which is rather surprising. They will still an on-chain settlement contract, though.
Paradex is a project most people have never heard of. Not entirely surprising, as it seems this P2P exchange has operated in stealth mode for some time now. As the developers are almost ready to unveil this service to the public, it is evident there will be a growing demand for such P2P services. With a growing focus on ERC20 tokens these days, there are plenty of opportunities to explore. The 0x protocol will be of great help in this regard, to say the least.
Paradex is Worth Keeping an eye on
More specifically, this protocol is a simple trading standard for handling exchange settlement. There is no need to register an account or trusting a third party with your funds along the way. This is a revolutionary idea, especially when considering it removes the need for actual exchange platforms in the future. This is why Paradex is not a website by any means. Instead, it will work within users’ Ethereum wallets directly. In-wallet trading for ERC20 tokens will slowly become the new norm, by the look of things.
The team comments on the situation as follows:
“Token trading on the blockchain is very much the wild west right now. Security problems are an always-looming danger with centralized exchanges, while unreliable order matching and slow trading speeds discourage traders from existing decentralized alternatives. The experience feels immature and innately risky. Our solution is Paradex, a robust, peer-to-peer trading platform where users from all parts of the world can buy and sell ERC20 tokens on the Ethereum blockchain in a decentralized fashion”
It is not the first time we see a decentralized approach to exchanging currencies or tokens. However, none of those solutions have been embraced by the masses just yet. Whether or not Paradex will fare differently, remains to be seen. Without requiring trust or third-party reliance, the project is certainly off to a good start. With blockchain technology available to us, there is no reason to further rely on centralized services whatsoever.
Header image courtesy of Shutterstock