Loopring (LRC) Research

Loopring (LRC) Research Details

Loopring (LRC) Loopring

INTRODUCTION

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.


HISTORY AND FOUNDER

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 45million 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 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.


REASON TO BUILD THE PROJECT

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.


BASE OF PROJECT

The Loopring working structure is basically built on two elements.

·       zkRoolups- 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 zkRoolups. 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 "orderring." Each order ring will have approximately 16 orders, with each order forming a loop.


USE CASE

·       Loopring uses zero-knowledge proofs to enable anyone to create non-custodial, orderbook-based exchanges on Ethereum.

·       The LRC is used to make payments on L2 zero-knowledge roll-ups (ZK-Rollups) 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.


MAJOR NEWS AND EVENTS

DATE

NEWS/EVENTS

IMPACT

22/03/2022

GameStop has partnered up with Loopring in order to develop new NFTs and enter the Web3 gaming ecosystem

+46% Increase

27/10/2021

GameStop has partnered up with Loopring in order to develop new NFTs and enter the Web3 gaming ecosystem

+125% Increase

18/05/2021

China prohibits financial and payment institutions from providing cryptocurrency facilities

-45% Decrease


CONCLUSION

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: zkRoolups 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.


DISCLAIMER

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto products are currently unregulated and subject to market risk. Please seek independent financial advice or do your own research before investing.