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Loopring: Scaling Ethereum with a Layer 2 DEX
With the increasing number of decentralized financial projects (DeFi) on Ethereum, transaction fees and processing times skyrocketed as well. Only recently, the Yuga Labs “Otherdeeds” mint on the Ethereum blockchain has set a new record for any NFT launch in terms of fees. Due to the lack of scalability, the gas fees shot up due to the number of simultaneous transactions. This was the reason behind the sudden increase in gas prices on the network, leading to the so-called “gas wars” as buyers tried to outbid each other for a chance to mint. Read more here.
Ethereum’s First zkRollup Layer2
Fast, secure and 100x lower fees, only on L2 — loopring.org
In the spring of 2022, the well-known video game retailer GameStop announced that they also wanted to offer a marketplace for digital collectibles. From then on, the platform worked with the Loopring exchange protocol to ensure maximum speed and low fees. The project sees itself as a hub between decentralized exchanges (DEX) and the Ethereum mainchain.
About Loopring
Loopring is a crypto project that was founded in 2017. The platform is gaining popularity due to Ethereum’s scaling deficits.
At launch, Loopring was designed as an open-source protocol to ensure transparency, speed, and security when exchanging tokens on exchanges. The Loopring (LRC) coin is based on the Ethereum blockchain and is an ERC-20 token. Loopring seeks to develop a hybrid ecosystem to further decentralize the trading of cryptos and NFTs.
According to the LRC developers, entirely decentralized exchanges have certain disadvantages. Loopring wants to circumvent these and offer the potential to create the ultimate DEX.
The goal is to combine centralized order reconciliation with decentralized on-blockchain order processing. This way, developers should be able to create crypto exchanges that combine the advantages of decentralized and centralized platforms.
