Loopring (LRC) – All you need to know

What is Loopring?

Loopring is decentralised exchange software that lets you buy and sell cryptocurrency. A developer can use its software like a template to build their own exchange and Loopring binds all these together, matching trades and providing liquidity across the whole network. Holders of the LRC token can earn rewards paid out of the trading fees.

Exchanges are just one wing of the booming world of decentralised finance. All of these platforms are about offering somewhere to trade crypto assets without a central institution running things. Loopring’s version is built on top of the Ethereum network and dates to 2017, when it was created by Daniel Wang, a Chinese software engineer.

How does Loopring work?

Loopring works by batching orders together across its network of exchanges and then adding them to the Ethereum blockchain all at once. This makes it possible to match virtually any order – with liquidity pooled from every exchange – and to execute them almost instantly.

It does this with a technique known as ‘zero knowledge proofs’, or ‘zkRollups’. This is basically just a quicker way of verifying everyone has the money they say they do, and means Loopring can perform hundreds of transactions and add them to the blockchain in one go.

The key part of all this is speed. Combining transactions on Loopring makes it possible to run thousands of trades per second, whereas the speed of the Ethereum network on its own is restricted to less than 20. 


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