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bZx is bringing something new to crypto

Due to the advent of 0x system, it has brought about the evolution of decentralized exchanges (DEXs). Although these decentralized exchanges tackle some of the existing issues associated with older DEXs, they still lack the features of many of the prominent centralized exchanges. Individuals seeking to partake in margin trading or margin lending are propelled to divert their liquidity to coin exchanges and centralized token thereby exposing them to risk and other dangers. In addition, decentralized margin is fraught with significant technical challenges. The major challenge is the development of a dependable oracle that has the security capabilities of centralized exchanges. Another challenge limiting the growth of decentralized margin lending is its inability to secure liquidity troubled positions. The bZx protocol seeks to address these issues and proffer solutions to the problems.

bZx is a trading protocol, peer-to-peer margin funding and is considered as the first fully decentralized protocol. It is equipped with Ethereum coupled with the integration of the 0x protocol. bZx is not regarded as an exchange, but a protocol that can be structured into the existing exchange infrastructure. The components of bZx includes; bZx.js Library, bZx Portal and bZx Smart Contracts. The bZx.js Library are designed in form of an asynchronous JavaScript library that comes with all the functions that facilitate the interaction with bZx smart contracts on-chain. Furthermore, software developers can make use of this library to create an interface linked to the bZx protocol. For bZx Portal, it is a decentralized application equipped with web features that functions as the front end of the bZx protocol. The bZx smart contracts are incorporated into the bZx protocol to facilitate monitoring, liquidation, opening and lending of ERC20 token trades.

In order to facilitate interaction with the bZx smart contracts, it starts when a lending order is transmitted to bZx. Sol. Regardless of the activities the person wants to carry out, whether he/she wants to borrow funds or lend funds, this lending order is created after the acceptance of the terms and conditions via the third party relay. Although this order can be transmitted via any medium, but it always come up via the relay. The BZRX token performs two main functions which include the governance of the bZx protocol and the offering of rewards. This token perform functions similar to the ZRX token utilized on the 0x protocol. Both of them harmonize the networks of rational economic agents registered on the protocol and they also facilitate decentralized, continuous updates to the protocol. The most popular directions for governance include multi-signature wallets and the Aragon leading to a DAO. It is obvious that multi-signature wallets depict an unnecessary attack surface.

By Q4 2018, some features would have been added to facilitate the smooth running of bZx protocol. For instance, the development of token governance, the integration of Oracle marketplace and the development of the cross-chain asset. In conclusion, the bZx protocol encourages experimentation and flexibility and at the same time decouple the valuation and liquidation of assets to encourage competition thereby reducing the fee of the Oracle provider.  website whitepaper telegram twitter medium

Author — Coltpython

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