1inch: Revolutionizing DEXs and Optimizing Crypto Trading Experience
1inch is an innovative application based on a comprehensive technology suite.
The 1inch dApp functions as a DEX aggregator, scanning various DEXs and hundreds or even thousands of liquidity providers to find the best price for a desired transaction. Users specify the crypto they want to sell and the one they want to buy, and the dApp takes care of the rest. Similar to websites that help you find the best price for car loans or plane tickets.
Initially, when 1inch first launched, the dApp only scanned a handful of DEXs to find the best prices. Today, 1inch utilizes an algorithm called Pathfinder, which searches for liquidity providers on Ethereum, Binance Smart Chain, and Polygon blockchains to find the best price. The dApp can split transactions among multiple partners to achieve the best price and has facilitated over $50 billion in crypto trades on the Ethereum network alone in its first two years.
Supporting the dApp involves depositing crypto funds into 1inch Network liquidity pools, allowing users to earn transaction fees through the 1inch liquidity solution.
In June 2021, 1inch replaced the Ox-based limit order engine with a new protocol developed in-house. The 1inch limit order feature enables users to set a price for buying or selling crypto assets. The transaction is queued until the specified price is reached and is then automatically executed.
1inch's limit order solution allows users to set various non-price conditions for the execution of their orders. For instance, orders can be executed based on the results of a national election provided by an oracle on the blockchain.
Founders of 1inch: Exploring the Blockchain Universe
1inch was born as an exciting adventure, and this story found its beginning at the ETHGlobal hackathon held in New York. However, this innovative project has deeper roots.
Two Russian programmers, Sergey Kunz and Anton Bukov, came together in 2017 with common interests in blockchain technology, smart contracts, and security. Bukov frequently appeared as a guest on Kunz's Russian CryptoManiacs YouTube channel and eventually became the permanent host.
Kunz and Bukov conducted smart contract security audits for Russian companies and began participating in crypto hackathons worldwide for entertainment. Along the way, the CryptoManiacs team became known for covering their hotel and flight expenses with the cash prizes they earned from competitions.
Although the team didn't win significant awards at the 2019 ETHGlobal competition, they returned from New York with a DEX aggregator code. Continuing to work on the code, Kunz and Bukov enjoyed the collaborative process, leading to the establishment of 1inch Limited in July 2020, with Kunz as the CEO and Bukov as the CTO.
1inch successfully raised $14.8 million through four funding rounds. This success reflects the determination of 1inch's visionary founders and their innovative perspective on the future. All eyes are now on how 1inch, under the leadership of these visionaries, will continue to pioneer developments in the crypto world.
Introduction of Governance System for 1INCH
Token, beyond just cryptocurrency.
In a groundbreaking move, 1inch introduced the 1INCH token to the market on Christmas Day in 2020, aiming to redefine the landscape of decentralized governance within its platform. Unlike traditional cryptocurrencies designed as investments, 1INCH serves primarily as a governance token. Holders of these tokens actively participate in the decision-making processes, casting votes on policies and strategies that impact the 1inch ecosystem.
Emphasizing its distinct purpose, a blog post from 1inch explicitly states, "1INCH tokens are not for sale. They are a reward for using 1inch products." This unique approach reinforces the idea that 1INCH tokens are not intended for speculative trading but rather as a reward mechanism for engaging with the 1inch platform.
Beyond facilitating decentralized governance, the 1INCH token plays a pivotal role in securing funds for ecosystem development, encouraging active participation in governance, and enabling staking for network security. Users can earn 1INCH tokens by lending to 1inch Network liquidity pools.
What sets 1inch apart is the seamless integration of its native tokens into the user experience. Users of the 1inch DEX aggregator and other services are not required to visit external exchanges to purchase 1INCH tokens, making it an essential but not obligatory component for utilizing the platform's services.
In addition to the 1INCH token, 1inch introduces a second token known as CHI. Functioning as an ERC-20 "gas token," CHI leverages the Ethereum Storage Refund protocol and other technologies to significantly reduce gas fees for crypto transactions on the platform. CHI's value is tied to Ethereum's gas price, and it is issued or burned based on the fluctuation of gas prices, providing users with a strategic way to minimize transaction costs during periods of elevated gas fees.
As 1inch continues to pioneer innovative solutions within the decentralized finance space, the 1INCH and CHI tokens stand as testaments to the platform's commitment to user engagement, governance, and cost-effective transactions.
Using 1inch to trade cryptocurrencies
1inch operates beneath the surface, orchestrating calculations with its proprietary Pathfinder algorithm to determine optimal conditions for crypto swaps involving two, three, four, or more exchanges. The algorithm is designed to split transactions across multiple exchanges or providers to ensure the best possible rates.
Currently, 1inch supports swaps between coins and tokens that adhere to ERC-20, ERC-721, ERC-1155, and BEP-20 standards. This broad coverage encompasses the majority of widely used cryptocurrencies. Notably, 1inch indicates the potential for extending support to other tokens through external extensions.
However, these intricacies are shielded from users. The 1inch interface prompts users to specify the types of tokens they own and which one they wish to purchase. Subsequently, the screen displays the best offer along with a range of other options. Clicking on "Swap now" executes the transaction, and users can choose from standard, fast, or instant processing options. For those willing to pay a higher gas fee, expediting the swap is also an available choice.
The prevalent concern of high gas fees in today's landscape is addressed by 1inch. All 1inch transactions present users with gas costs and provide options to minimize these costs. Users can often save on gas fees by paying with the 1inch CHI token. This can be effortlessly done by checking the confirmation box on the swap screen.
Beyond straightforward swaps, users can set target prices for future transactions or earn profits by depositing cryptocurrencies into liquidity pools utilized by DEXs and DEX groups. The 1inch dApp transparently displays potential returns, allowing users to visualize the earnings from making their crypto funds available for a day, a week, or a month.
As 1inch continues to offer a seamless and efficient trading experience, users can explore diverse options while staying informed about gas costs, maximizing their potential gains in the ever-evolving world of cryptocurrency.
HOW TO USE
The most effective way to use 1inch is to visit the website and attempt a few buy and sell transactions. While the user interface is simple, it provides enough flexibility to exert high-level control over crypto swaps. 1inch allows users to explore transactions and prices before making buy and sell decisions.
Getting started with 1inch is easy. Simply create an account, connect your wallet, and define the crypto swap you wish to execute. The platform offers a user-friendly interface that provides ample information for users who want to explore transactions and prices before engaging in buy and sell activities in the cryptocurrency market.
In the dynamic world of cryptocurrencies, 1inch stands out as a pioneering DEX aggregator, tirelessly scouring hundreds and even thousands of sources to ensure users secure the best possible prices in every crypto transaction.
This groundbreaking service is seamlessly integrated into a user-friendly dApp, accessible on both web platforms and mobile devices.
Notably, 1inch has introduced two distinctive tokens into the market. The first, 1INCH, serves as an "instant governance" token, playing a crucial role in financing the operations of the 1inch network. On the other hand, CHI operates as a gas token, empowering users to minimize gas fees while conducting transactions through the 1inch dApp. It's worth highlighting that both tokens are not designed as investment opportunities for investors.
The introduction of these tokens exemplifies 1inch's commitment to funding network operations and enhancing user experiences by reducing transaction costs. As 1inch continues to shape the decentralized finance landscape, it remains at the forefront of innovation in DEX aggregation and token functionalities. The platform's user-centric approach and groundbreaking solutions make it a noteworthy player in the ever-evolving crypto sphere.
