A key purpose of this blockchain is to facilitate the exchange of cryptocurrencies by pooling orders from many different exchanges. To fulfil the orders, the network matches them with the order books of all the exchanges that participate in the Loopring network. Both centralized and decentralized crypto exchanges can participate in the network, and this helps to provide increased liquidity to the exchanges. The blockchain has become extremely popular as it offers faster settlements for all trades.
Briefly about Loopring
Loopring was created by Daniel Wang, a software engineer who is based in China. The network uses a variety of tools, protocols, and infrastructures to streamline the creation and operation of DEX platforms. Since it uses zk-rollups technology, it is able to process thousands of transactions in a second.
Loopring offers fast, secure and cheap layer two transactions on Ethereum with their first zkRollup.CryptoLists.com
Loopring blockchain is not a decentralized exchange. Instead, it works as a layer 2 Ethereum network and facilitates DEX platforms using ring sharing technology. Its native cryptocurrency is the LRC coin, but it uses many other altcoins.
Utility of Loopring?
The main purpose of this blockchain is for the development of DEX platforms. It allows users to swap tokens without paying any gas fees. A major benefit of this network is that it combines the benefits of centralized and decentralized crypto exchanges, and it also offers quick settlements.
Loopring
Loopring Consensus Method: Other
Release Date: September 8, 2018
Advantages at Loopring
+ With zk-rollups construction, the Loopring protocol is highly scalable.+ Users have to pay very low fees for the transactions.
+ Loopring network enjoys the full security guarantees of Ethereum.
+ Transfers made on Loopring blockchain are extremely fast.
Disadvantages
- Loopring has to deal with regulatory issues of centralized exchanges.- Order books are visible to miners, and this can result in delays.
- The network experiences a lot of competition.
- As a decentralized network, Loopring network isn’t regulated by the government.
Costs
▪ Rated at 10/10Layer 2 transactions on this blockchain do not have any gas fees. However, if you are sending money to a new account that has never interacted on the layer 2 protocol, you will have to pay a small fee of a few cents on the US dollar. In the future, all transactions on the blockchain will attract a fee of a few cents. Transferring funds from the Ethereum blockchain to this network will cost you the regular gas fee of about $20, but once this process is complete, you will be able to transact without paying any gas fees.
Reputation and Buzz
▪ Reputation rated at 9/10▪ Buzz rated at 8/10
Loopring blockchain is a popular network as it makes it possible for individuals to make transactions without paying any gas fees. The company has managed to build a large online community, and crypto traders are generally interested in the success of the network. This protocol has more than 208,000 followers on Twitter, and you can join this community to follow updates on the blockchain.
FAQ
Who created Loopring Blockchain?
This layer 2 protocol was created by Daniel Wang, and he still serves as the CEO of the company. He previously worked at ZhongAn Insurance, and he graduated from the University of Minnesota.
Is Loopring Blockchain proof of stake?
Loopring blockchain does not use proof of stake or proof of work, and it is instead based on a three-layer Merkle Tree. This method makes it possible for the network to handle thousands of transactions per second.
Will Loopring Network overtake Ethereum?
No, it is impossible for Loopring to overtake Ethereum as it is a layer 2 solution of Ethereum. It is also worth noting that Ethereum enjoys the first-mover advantage and has been the second largest blockchain for a very long time.
What is the LRC token?
LRC is the native cryptocurrency of the Loopring blockchain, and you can buy it many crypto exchanges. These include Coinbase Pro, Bilaxy, Binance, and OKEx.
Screenshots from Loopring
Native crypto coin for this blockchain? Learn more about Loopring (LRC)
LRC is the native coin for Loopring. It is therefore also worth reading more about that on the link below.›› Read our full Loopring review here
