Loopring's LRC is an Ethereum-based digital currency. LRC is an open protocol built specifically for the creation of decentralized cryptocurrency exchanges.
Loopring is software that operates on the Ethereum blockchain. Its ultimate goal is to reward global users to manage a platform that would allow the design or implementation of new crypto-asset exchanges. Loopring will offer its platform in a variety of digital currencies, including its own native coin, LRC.
Loopring's token powers an autonomous decentralized exchange that allows you to trade Ethereum tokens like USDC, AAVE, and ETH at a fraction of the price of other decentralized Ethereum blockchain services like Uniswap.
Daniel Wang, a Chinese software engineer, and entrepreneur, first introduced Loopring in December 2017. Loopring (LRC) held its initial token offering in 2017, raising around $12,000 in Ethereum (ETHER) valued at 45 million dollars.
Because of the tightening of rules and laws in China, the maximum amount of funds earned is returned to ICO participants. The remaining funds were put towards the Loopring Foundation protocol development.
Loopring has since been updated with two new versions: Loopring v2 and Loopring v3. These new versions included new cost models and more trade execution options.
The main idea for Loopring's creation was to lower the transaction volume that a Loopring (LRC) exchange had to submit to the Ethereum (ETH) network. Loopring will, in the end, enhance transaction speed while lowering prices for all traders. Loopring combines components from both centralized and decentralized bitcoin exchanges to develop a system with a unique set of benefits that avoids inefficiencies. It provides a decentralized exchange(DEX) that facilitates buy and sell orders that link directly with each other and settles deals on a public blockchain, rather than holding user funds in custody and processing trades internally.
The Loopring working structure is basically built on two elements.
· zkRollups: Loopring provides superior performance in comparison to standard DEXs. Loopring creates a "fast lane" by aggregating all transactions and then executing them off-chain. As a result, users will be able to avoid Ethereum (ETH) network congestion. The procedure is carried out with the help of zkRollups, commonly known as a "Layer-2 scaling solution." In zkRollups, Zk stands for zero-knowledge. The total amount of LRC transactions sent to the blockchain is considerably reduced with zkRollups. Loopring trades are now cheaper and faster because of this technology (LRC).
· Order Rings: There are a number of decentralized exchanges on the market. An order to buy a certain currency in a trading pair on the DEX must be matched or paired with another order to sell that crypto coin in an identical trading pair. Loopring (LRC) is a fantastic way for mixing and matching several orders in a circular trading system. This structure is referred to as an "order ring." Each order ring will have approximately 16 orders, with each order forming a loop.
· Loopring uses zero-knowledge proofs to enable anyone to create noncustodial, order book-based exchanges on Ethereum.
· The LRC is used to make payments on L2 zero-knowledge rollups (zkRollups) while maintaining blockchain security.
· LRC tokens are used for the installation of protocol pool staking which receives 70% of the distribution.
· Loopring also offers a payment system developed for the Loopring protocol. It allows users to exchange digital assets such as cryptocurrencies.
DATE | NEWS/EVENTS | IMPACT |
07/05/2022 | TerraUSD and LUNA both collapsed, and as a result, a number of crypto platforms folded in the aftermath | -40% Decrease |
26/03/2022 | Loopring's price soared after GameStop added the NFT marketplace | +60% Increase |
27/10/2021 | GameStop has partnered up with Loopring in order to develop new NFTs and enter the Web3 gaming ecosystem | +125% Increase |
09/09/2021 | Livepeer, Loopring, and Keep3rV1 surge as Bitcoin tests underlying support | +100% Increase |
18/05/2021 | China prohibits financial and payment institutions from providing cryptocurrency facilities | -45% Decrease |
Loopring is a decentralized trade technology with high throughput. LRC is a decentralized exchange protocol based on Ethereum (ETH). Loopring was established to allow buyers to trade their assets across a variety of exchanges. To keep things simple, Loopring (LRC) is not a DEX protocol, but it does make DEX easier by utilizing two methods: zkRollups and order matching.
The Loopring protocol is continually expanding and releasing new features, thanks to the support of a large community. The Loopring protocol has the ability to drastically change the way future DEXs are designed in a crypto environment plagued by high transaction fees and low scaling rates.
Loopring