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What is 1inch Network? - An Introductory Guide To 1inch DEX Aggregator And Swap Exchange 

 

By Damian David Mar 8, 2023

 

 

The 1inch network is a decentralized application(DApp) with a state-of-the-art aggregation protocol that provides users with the best swapping routes and prices in the cryptocurrency market.

 

In simpler terms, the 1inch network works like a search engine for cryptocurrency swaps, and the search results only provide the best paths or routes you can use to execute a swap or make an exchange with respect to the best price and efficiency.

 

 

How Does 1inch Network Work?

 

The trade of cryptocurrencies are made in exchanges, both decentralized (DEX) and centralized (CEX). Each of these exchanges are distinctive or different and this makes the terms, methods and prices that is used to trade cryptocurrencies with them different as well. The difference between these exchanges is what gave birth to Arbitrage Trading, but Arbitrage Traders merely corrects these differences consistently without actually providing a permanent solution to it.

 

The differences between these exchanges are mostly put into consideration by users of cryptocurrency because they have to constantly compare rates between different exchanges to be able to find the one most suitable for their transaction. Think of it like going to buy a mobile phone and then knowing that different stores in your neighborhood sell the phone for slightly different prices and then you have to visit each of the stores to haggle and conclude on the best price.

 

What if there was a way to buy the phone from the exact store with the best price without having to visit all the stores in your neighborhood to haggle and compare prices? If you replace these stores with DEXs and CEXs and replace the phone with cryptocurrency, the way to buy the phone without visiting all the stores in your neighborhood is through The 1inch Network.

 

In a technical description, the 1inch Network makes this possible by using two core features which are the 1inch dApp and the 1inch Aggregation Protocol. The 1inch dApp works by providing a web based decentralized application (dApp) that is compatible with multiple chains using smart contract functionalities. And the 1inch Aggregation Protocol is the architectural embedment of this web based dApp is a technology created by the 1inch Network itself and tagged the "Pathfinder". It works just as the names implies but applying it to the solution the 1inch Network provides.

 

The Pathfinder uses a smart contract router to conduct a deep search and decide on the best path or route to which will provide the most profitable results of your swap or crypto exchange in the 1inch Network. Assuming you're to swap ETH to USDT using the 1inch Network, the Pathfinder looks for the best route from different protocols and chains that will provide both fast and cost effective results. 

 

And this route can be from ETH to BSC to USDT or ETH to USDC to BNB to USDT but as long as it will give the user the most profitable results, then the Pathfinder will route the swap through it, all while still in the 1inch Network.  

 

Added Utility Of The 1inch Network 

 

1inch Liquidity Protocol: The 1inch Exchange added a native Automated Market Maker (AMM) to its platform, this AMM protocol was formerly known as Mooniswap and it still exists as Mooniswap as of March 2023. The 1inch Liquidity protocol was built to provide liquidity in form of AMMs and also protect users from front-running.

 

1inch Limit Order Protocol: Users of the 1inch network can create limit orders and RFQ orders off-chain efficiently, and then the execution of these orders on the on-chain will be carried out effectively as well. The 1inch Limit order protocol is gas efficient and extremely flexible allowing users to leverage maximally on this protocol.

 

1inch P2P Transactions: The 1inch Network P2P Transactions functionality allows users to exchange mostly ERC20 standard tokens on any EVM protocol directly and without the need of an intermediary. This process is efficient and seamless and the 1inch Network is still creating ways to make it even better.

 

1inch Mobile Wallet: The 1inch Network made a mobile wallet available for its users that can be gotten from the PlayStore and AppStore on both Android and iOS respectively. This wallet offers maximum experience and Web browsing functionality with the 1inch Network. It is non-custodial and laced with adequate security features.

 

What Is 1inch Foundation?

 

The 1inch Foundation pioneers and facilitates activities, initiatives, events and developments that will improve the overall wellbeing and image of the 1inch Network, its community and its substructures at large.

 

It is a non-profit independent organization that is tasked with the effort of keeping the 1inch network relevant and evolving. The 1inch Network is accredited for the development and issuance of the 1INCH Token.

 

What Is 1inch DAO?

 

The 1inch DAO also called the 1inch Decentralized Autonomous Organization is the apex of governance and decision-making in the 1inch Network. Since the 1inch Network is a decentralized application, the governance is distributed amongst every holder of the 1INCH Token.

 

Holders of the 1INCH token can decide on what will happen on the 1inch Network Smart contracts by voting. The 1INCH token succeeding it's launch was airdropped to users of the 1inch Network preceding the launch, however it can still be bought on multiple exchanges like Binance, Huobi Global, Coinbase, Kraken, KuCoin, and OKEx.

 

What Is 1inch Core Contributors?

 

The 1inch Core Contributors are a group of expert hands of developers responsible for the building and maintenance of various features and utilities of the 1inch network. 

 

The most prominent contributor of the 1inch Core Contributors is the 1inch Labs. They are tasked with building and maintaining the network, enhancing functionalities and making available APIs.

 

How To Use 1inch dApp

 

● On your web browser, type in "app.1inch.io" and press enter.

 

● On the top right of your screen(for PC) or the bottom end (for mobile) tap on "Connect wallet" to connect to a supported wallet.

 

● You'll be given an option to choose from 10 different networks namely; Ethereum, BNB Chain, Polygon, Optimism, Arbitrium, Gnosis Chain, Avalanche, Fantom, Klaytn and Aurora.

 

● You'll also be given an option to select from 18 different wallets.

 

● After selecting the options of your choice give permission to 1inch in your selected wallet to connect.

 

● After it has successfully connected you'll be redirected to the 1inch web app and your balance will be shown.

 

● Select the coin or token you wish to swap and load the amount to swap.

 

● There are two ways to swap on the 1inch network namely; The Fusion Mode and The Legacy Mode.

 

● If the assets you're swapping are of substantial amounts The Fusion Mode will be automatically activated. Using Fusion Mode to swap guarantees zero transaction cost at the best market rates.

 

● But if the assets you're swapping are not substantial the Legacy Mode will be rather activated.

 

● The Legacy Mode conducts swaps at the best rates with the most minimal transaction fees.

 

● You can switch to "Aggressive" under the Legacy mode to make your swap faster but this will increase the transaction fees.

 

● Click on "Swap" to execute the transaction and check your wallet for the swapped assets.

 

What is 1inch Token?

 

1inch is the native cryptocurrency of the 1inch Network responsible for the economic structure and the governance structure of the 1inch Network. It is an Ethereum (ERC-20) standard token and compatible with all EVM protocols.

 

1inch was launched in December 2020 about a year after the launch of the 1inch Network and one year after that in 2021, $175 million worth of 1INCH tokens was sold in a private token sale with institutional investors.

 

At the time of writing, 1INCH is worth $0.5222 with a total market cap of $434,036,482. The total supply of 1INCH tokens is unknown but circulating supply is reportedly 830,442,634 1INCH tokens according to CoinMarketCap.

 

Is 1inch And Ethereum Similar?

 

1INCH token is an ERC20 issued native token of the 1inch Network which can be used on any Ethereum based protocol. It is built and functioning on the Ethereum Blockchain but it is not to be confused with the Ethereum Coin - ETH.

 

Is 1inch Network Safe?

 

According to multiple sources the 1inch Network is the most audited platform in the DeFi ecosystem. This potentially means it is practically safe in respect to the number of reliable top audit teams in the blockchain industry that have audited it.

 

OpenZeppelin, Consensys diligence, SlowMist, Haechi Labs, CoinFabrik, Certik, Hacken, Scott Bigelow, MixBytes, and Chainsulting are the known audit teams of the 1inch exchange. Personal research is however advised before making a major financial investment.

 

Why Choose 1inch Network?

 

Swapping your crypto assets with the best rates and the best transaction fees shouldn't be underrated if you're doing it successfully with two or three clicks. Because that's what the 1inch Network provides, a solution that will save you the stress and inconvenience of scrolling through multiple DEXs and CEXs Just to look for the best rates for your cryptocurrency transactions. 

 

Another thing that shouldn't be taken for granted in the 1inch Network is its ability to provide swaps with the best rates and also for zero gas fees or transactional fees using its "Fusion Mode". Better still, it provides other deFi functionalities like liquidity, limit orders, P2P, and a non-custodial wallet. What could possibly serve as a better DEX aggregator?