Interoperability has turned into a very critical issue in the world of blockchains. It is a challenge most blockchains are still facing, and projects that aim at this challenge usually become popular. 1inch is one of such projects. In this article, we will go through 1inch, and explain the challenge it aims to overcome, as well as its method for doing so. Stay with us.
What is 1inch? The aim of 1inch
1inch is an Ethereum-based platform that aggregates different decentralized exchanges. Its main aim is to find the best price, and offer it to the users. For example, imagine you want to trade a coin like Ether, and you want to do it through decentralized exchanges. Since different decentralized exchanges have different algorithms and offer different prices, a platform like 1inch is needed to find the most appropriate rate. For this reason, 1inch is called “a DEX aggregator”. 1inch uses APIs for finding the best route and the best trading rate. Ensuring the security and reducing the gas costs are two primary aims of 1inch.
How does 1inch work?
1inch consists of 3 protocols: aggregation protocol, liquidity protocol, and limit order protocol. We will go through each of these protocols separately.
Aggregation protocol provides liquidity from different decentralized exchanges, and distributes it among different decentralized exchanges to find the best rate. It has a “pathway algorithm” for finding the best route in less than a second.
Liquidity protocol is an automated market maker (AMM) that lets users automatically trade their assets using liquidity protocols. Users who want to stake their 1INCH tokens and earn rewards can use this protocol.
Limit order protocol
This protocol offers flexible limit orders. This protocol is fee-free, it offers dynamic pricing based on supply and demand, and supports multichain transactions.
Who created 1inch?
1inch was created by Sergej Kunz. He is a crypto expert and the owner of the cryptomaniacs YouTube channel. He has 15 years of experience as a software engineer and security specialist. He developed the idea of a DEX aggregator in May 2019. With the help of a colleague called Anton Bukov, he launched 1inch, and then expanded his team in the passage of time.
The 1INCH token; market cap and price history
1INCH is the native token of this platform. At the time of writing, each unit of 1INCH is being traded at $0.89. 1INCH’s market cap is more than $468M, and it is the ninetieth-largest cryptocurrency by market cap. 1INCH’s all-time high goes back to May 2021 when its price went over 7 dollars. Nearly 571 million units of 1INCH are in circulation. It has a total supply of 1,500,000,000 units, and no max supply has been determined yet.
As we previously mentioned, 1inch is an Ethereum-based platform, and its token is an ERC-20 token. So, you can use all Ethereum wallets for storing it. However, 1inch also has a native wallet called 1inch wallet. Some of the best options you can consider for storing 1inch include:
- Ledger (hardware)
- Trezor (hardware)
- 1inch wallet
- MyEtherWallet (software)
- Trust Wallet (software)
1inch is a practical platform that lets users find the best price and trading rate. It also reduces the gas price by distributing the trades between different decentralized exchanges. In this article, we tried to go through 1inch and its functions in simple terms. Have you ever used 1inch, or do you think you will do so in the near future? Share your opinions and experiences with us.