Loopring: Everything you need to know

Industries come and go but there are very few of them which manage to break all records and make a name for themselves, one of which is the crypto industry. Crypto is one such industry that has been gaining quite a lot of attention from potential investors across the globe. Lately, it has constantly been booming and has witnessed a surge in growth and popularity and is expanding at a rate that was never anticipated. 

Having said that, I believe that most of you here today are already aware of the industry but if for some reason you still don’t know what it is. Let’s talk about that first, shall we? Cryptocurrency is nothing but a decentralized blockchain-based platform or simply a form of virtual currency, which can be used for a variety of purposes including the purchase and sale of goods and services as well as for the trade and exchange of currencies over crypto exchanges online. 

For further clarification, being decentralized, the industry has the capability of working outside the overall control and jurisdiction of central authorities and operating freely without any unwanted government interference. Also, talking about blockchain technology, the entire industry uses this particular technology in order to function, while using it for the purpose of verifying and recording all transactions that take place over the network in order to eliminate the risk of double-spending and counterfeiting entirely. 

However, it is worth noting that, the industry was not always this successful, instead, when it was first introduced a couple of years ago, there were just a handful of investors wanting to invest and honestly, not many currencies were available either. But, on the contrary, looking at its exponential growth, investors from all around the world and many people with celebrity status like Tesla CEO, Elon Musk have also been intrigued to invest in cryptocurrencies.  

Some major factors for this huge success of the industry include its portability, high-profit margins, ease of use, convenience as well as its extremely volatile nature. Being volatile, the price fluctuations in the marketplace are almost instant, thus making it very difficult to predict, even for experts in the field. You should probably know that, if you can make huge profits using cryptocurrencies, if not done right, you could end up having significant losses as well. So, it is important for you to be vigilant while dealing with virtual currencies.  

As mentioned, there are a lot of currencies available today in the marketplace and some of the most popular currencies to choose from include Ethereum, EverGrow Coin, Bitcoin, Ethereum, Binance Coin, Dogecoin as well as Baby Doge to name just a few of course. 

Now that you have a brief backstory about the crypto world, you will be able to have a much better understanding of what we have with us today, Loopring. To know more, I suggest you read further!

Everything to know about Loopring (LRC)

Loopring or as commonly referred to as LRC is nothing but an open protocol that has been designed focusing on the building of decentralized cryptocurrency exchanges. The Loopring Foundation was founded by Daniel Wang, who is also the chief executive officer for the platform and manages the overall development of the Loopring Protocol. 

In other words, Loopring is an Ethereum token that is said to describe itself as an audited, open-sourced as well as a non-custodial exchange protocol, which aims at allowing users on the platform to develop a non-custodial, order book based exchange on the Ethereum network by simply leveraging zero-knowledge proofs. 

In addition to this, Loopring is one such protocol that majorly emphasizes on scalability. Also, practically speaking, with more and more participants in the Ethereum network, the transactions tend to become more plentiful. As a matter of fact, without having any proper means or channels to process these transactions, they can cause massive congestion in the pipeline, thus increasing the transaction fee significantly. 

This is where Loopring comes into play. The protocol resolves all such issues by allowing its users on the network to simply settle transactions off-chain. As a result, this definitely makes the overall transactions faster on-chain, while also allowing users on Loopring to avoid high Ethereum fees. Think of it this way that, as Ethereum lunges forward towards new highs, transaction fees on the platform will naturally rise. 

As a result of this, Loopring seems like an inviting option to investors and traders who are looking to avoid high prices. Furthermore, the said protocol focuses on incentivizing a global network of users in order to operate a platform that is known to allow the development and creation of new types of crypto-asset exchanges. 

Being one of a few emerging protocols for decentralized finance (DeFi), Loopring is said to use multiple virtual currencies, including its very own native utility token, LRC in order to provide for the platform. Apart from this, Loopring claims its platform will be allowing exchanges that are built on top of it to sidestep the high costs and slower speeds associated with decentralized exchanges on the popular Ethereum network by using a completely new type of cryptography known as zero-knowledge rollups or zkRollups. 

Now for some of you wondering, what role does it play? Let me help you with that. With zkRollups, the platform assets its exchanges can offer much faster trade settlements, and instead of settling trades directly on the Ethereum blockchain, zkRollups allows Loopring exchanges to complete all the key computations elsewhere. Thus, decreasing the number of transactions being submitted to the Etheum network and significantly increasing speed, while reducing costs, as mentioned previously. 

It is worth noting that, in 2020, the trading volume of the entire crypto market on a daily basis fluctuated in the approximate range of about 50-200 million dollars. As a matter of fact, most of the trading that has been done was conducted with the help of centralized crypto exchanges. Just like any other, these exchanges do have their downsides as well and in order to overcome those, decentralized crypto exchanges came into existence, which also had some limitations obviously!

As per research, the best aspects of both centralized and decentralized exchanges can be procured by combining centralized order with decentralized matches on blockchain order settlement that effectively creates a hybridized product. This indeed can be referred to as Loopring’s purported goal.

Speaking of LRC tokens, they became available to the general public about four years ago, back in August 2017 during an initial coin offering (ICO), while the Loopring Protocol was first released on the mainnet nearly two years ago, back in December 2019.

What makes Loopring special?

As mentioned previously, the main idea behind Loopring was to combine the elements of both decentralized as well as centralized crypto exchanges in order to create a protocol that is able to enjoy its unique upsides, while eliminating inefficiencies. Currently, centralized exchanges are seen as the primary mode of operations for services related to the trading of cryptocurrencies. 

Not just that, while being extremely convenient and popular, centralized exchanges are known to carry several risks, the biggest of all is its custodial nature. Due to the fact that these exchanges hold funds of their users for them between the points of withdrawing and depositing, those funds usually come under the risk of being fully or partially lost because of potential hacker attacks as well as spiteful actors inside the exchange or regulatory interventions for that matter. 

As previously mentioned, Loopring protocol seeks to take advantage of decentralized exchanges, while eliminating their inefficiencies with the help of innovative hybrid solutions. By settling trades on blockchain but managing orders in a centralized manner as well as combining about 16 orders into circular trades instead of strictly following one-to-one trading pairs, Loopring definitely expects to increase the overall efficiency of order execution, while enhancing the liquidity of decentralized exchanges (DEXs). 

Investing in Loopring (LRC)

As of today, the price of Loopring is about 1.30 US dollars with a twenty-four-hour trading volume of 4,401,236,486 dollars. Not just that, in just the past twenty-four hours, the value of the Loopring has gone up by 73.02 percent, and with the current market cap of 1,720,159,660 US dollars, LRC is currently placed at #78 position as per the CoinMarketCap rankings.

Also, it is worth mentioning that, the current circulating supply of Loopring is nearly 1,323,986,433 LRC coins with a maximum lifetime supply of about 1,374,513,896 LRC coins. In just the past week alone, the price of Loopring has gone uphill by 202.16 percent.

Reading so far, you must have gotten a fair understanding of the platform and by now, you should be able to figure out on your own whether or not investing in Loopring is the right thing for you to do. Seeing what it has to offer when combined with its performance in the recent past as well as its plans for the near future, I certainly believe that Loopring can prove to be a profitable investment in the near future, which is likely to provide you with good returns and it is a possibility that your current investment may increase in value. But again, nothing can be said for sure!

As mentioned at the very beginning, crypto is a highly volatile marketplace and is extremely uncertain. Thus, It is very important for you to understand the fact that, just like any other currency in the crypto marketplace, Loopring does have its own risks as well and you should invest only if you are willing to take those risks and bear any and all losses if at all necessary.

If you are wondering, where can you buy Loopring? Let me help you with that. Currently, Loopring is available on all major crypto exchanges but, some of the popular exchanges that have LRC listed on them include Binance, OKEx, BKEX, Mandala Exchange as well as CoinTiger to name a few. 

In conclusion, what are your thoughts on Loopring? Do let us know in the comments below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!

Also read: Alchemy Pay: Everything you need to know