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What Is Loopring?

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Nov 21, 2022
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5 min read
what-is-loopring

This blog post will cover:

  • About Loopring (LRC)
  • Where did Loopring (LRC) come from?
  • What are the advantages of Loopring (LRC)?
  • What are the disadvantages of Loopring (LRC)?
  • How to buy Loopring (LRC) on SimpleSwap?

About Loopring (LRC)

Loopring (LRC) is a decentralized crypto exchange protocol that has an automated execution system based on Ethereum. Put it differently, Loopring is a tool that uses smart contract algorithms to convey crypto assets without human intrusion. This is an exchange solution that simplifies buying and selling processes. Loopring's goal is to create the excellent-in-class zkRollup exchange and payment protocol on Ethereum that will be in demand all over the world.

The zkRollup protocol can be described as a secondary blockchain on top of the Ethereum main chain. The secondary chain (or "child" chain) is used to perform calculations when processing is required. The main chain is needed to store the received data. ZkRollup processes packets of transactions off-chain (instead of processing separately each transaction on the main chain) and delivers the result to the main chain. By maintaining security at the Ethereum level, Loopring can consolidate transactions across multiple blockchains.

In 2017 Loopring launched the LRC token which was used to pay off on-network fees. The token sale raised $45 million from 12,000 investors. LRC is the ERC-20 token. The project uses the LRC Burn Rate mechanism to burn tokens, thereby increasing the value of tokens on the market. LRC tokens are used to pay off the commission for Loopring transactions.

Where did Loopring (LRC) come from?

Loopring was established in 2017. The main feature in the first version of the project was the "matching rings" feature. Several pro­posals from several traders are integrated into virtual rings. This allows splitting orders. When a proposal cannot be completed in one transaction, it can be completed in a subsequent ring until the final processing. Tokens are moved within the formed group of 2-16 applications. The creators added the function of eliminating the lead when trading in the second version (1.5). The third version allows traders to use any ERC20 token as a relay board (not just LRC). Then the aforementioned zkRollup protocol was added. It increased the speed of processes without compromising security. So, the project continues its development. Each new version is more innovative than the previous one.

Loopring was invented by a software engineer, Daniel Wang. Wang graduated from the University of Science and Technology of China and has a Bachelor of Computer Science degree. Before Loopring, Wang held several management and leadership positions. He worked at Boston Scientific and Google. Wang is also a co-founder of several companies: Yunrang (Beijing) Information Technology Ltd. and cryptocurrency company Coinport Technology Ltd.Jay Zhou worked at Ernst & Young and Paypal before switching to cryptocurrency. He co-authored the original technical paper for Loopring. Now he is a tutor at Stanford who consults students on cryptocurrency and decentralized applications.

What are the advantages of Loopring (LRC)?

  • Loopring protocol security
    
    Ethereum's zkRollup protocol is one of the most secure scaling mechanisms in the industry. This implies that users can access their assets under any circumstance. No one (from an ordinary person to a state) can stand between a user and their Ethereum-based assets.
  • Great for business clients
    
    The open and cryptographically secure open-source Ethereum protocol saves businesses time and money in regulatory compliance.Loopring also can be used for payment functions - as a fast and gas-free line for users to deposit and withdraw Ethereum-based assets.
  • High-speed recording protocol
    
    ZkRollup's throughput is over 2025 trades per second, while transactions and transfers cost a fraction of a cent. Also, Loopring has enough performance for algorithmic traders and market makers to deploy legacy HFT strategies on the DEX for the first time.

What are the disadvantages of Loopring (LRC)?

  • Not all exchanges are willing to implement Loopring
    
    In order to have a higher rank within the protocol, exchanges need to buy and hold LRC tokens. In addition, they need to open information regarding their inner working processes, including their order books.

How to buy Loopring (LRC) on SimpleSwap?

If you want to become an owner of the Loopring cryptocurrency, then look for SimpleSwap and follow these instructions:

  • For example, you want to swap BTC for LRC. Select the currency you want to exchange (e.g. BTC) in the first drop-downlist. Then enter the amount you want to swap.
  • Select LRC in the second drop-down list. You’ll see the estimated amount that you’ll get after the exchange.
  • Click the Exchange button.
  • Enter the Recipient's Address. LRC will be sent. Be careful and make sure you use the correct address.
  • Create the exchange.
  • You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the BTC to LRC exchange.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.

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