Loopring is an open protocol and a decentralized exchange.
It is developing an open protocol/wallet which people can use to trade tokens right from their wallet, unlike using Centralized Exchanges or the Blockchain’s DEX.
The need for Loopring Protocol
The Loopring protocol is needed because, just as bitcoin which provides peer to peer electronic cash, the main benefits are lost if a trusted third party is still required to prevent double-spending, so too are the main benefits of decentralized assets lost if they must pass through trusted, gated, centralized exchanges.
DEX (Decentralized Exchange) has gained much traction.
DEX eliminates the need for a centralized authority to trade tokens/assets.
Funds remain in control of the user and the trade executes using Smart Contracts, this brings the end of trade manipulation and hacking-related risks.
Moreover, the user does not have to share his personal Information for KYC compliance.
DEX usually have almost no withdrawal fees, unlike Centralized Exchange.
Drawbacks of Loopring Protocol
Despite the features provided by DEX, here are few drawbacks which are being an obstacle,
- Poor User Interface
- Lack of liquidity
- Token/Coin Availability
- No cross-chain asset support
- Lack of base token to make transaction/Gas fee.
Execution by the Loopring
Founder of the Loopring who is Daniel wang.
He is the founder and his experience are as Google Tech Lead, Co-founder & VP of Yunrang Technology, Senior Engineering Director at JD.com, Co-founder & CEO of Coinport Exchange, Co-founder & VP of Hygene Online, Senior Director & Blockchain Researcher of Zhongan Technology.
CMO of this protocol Jay Zhou has experience in E&Y, PayPal Risk Operations, SJ Consulting Founder.
So, both of them are a team and they have capabilities in executing the product they promised to deliver known as ecosystem participants.
- Wallet: The wallet will be the DEX interface to the user. It has a built-in execution system that enables the exchange of tokens at each and every level to ensure better liquidation, faster execution of orders, flexibility in exchange, and most importantly lessens the trading fees.
- Order Ring: Loopring uses a different kind of Order book called the Unidirectional Order Model in which there can be an exchange or orders like TokenX/TokenY. So, orders are like Exchange TokenX at the price for TokenY. The Protocol claims that it matches order into circular trade and achieves the “trade is possible whenever the buyer is willing to pay an equal or higher price than the seller’s price.”
- Relay Mesh and Ring Mining Technology: Relay’s and Ring Mining Technology is responsible for enhancing liquidity by many folds using it’s underneath Protocol and Relay’s plays the most important part in it. Relays are the nodes that receive orders from the Wallet and it maintains a public order book and trade history. They are free in communicating with one another, know how to build their order books, and mining the order rings. Some relays choose to ring mine are “Ring Miners” who produce order rings and as reward, they get a portion of LRC or LRX which was consumed in the trade as fees.
- Loopring Protocol Smart Contract: Finally checking Ring orders from the Ringer Miner, A smart contract executes and trustlessly executes, settles the trade, and incentivizes the Ring Miners. Orders are managed off-chain and settlement are done on-chain.
- Open Protocol: Loopring is not only a DEX with a wallet-like UI but also an open protocol that can be deployed on any blockchain it wants. The main goal of the protocol is to implement it on as many blockchains as possible.
Deployment of LRN and LRQ: Loopring decides to be implemented on NEO and Qtum.
LRN: The deployment of the Loopring Protocol on NEO blockchain leads to the creation of a new token (LRX) called LRN.
Development :
- v1.4 was successfully deployed on NEO Blockchain.
- Sale for LRN where its price = 1 USD.
- Token got deployed in the month of April’18 and distributed at the end of the month.
- Airdrop of LRN to LRC holders in June.
LRQ :
- Loopring Protocol v1.4 is successfully deployed on Qtum Blockchain. There is a very good Work Progress
- We will see it’s complete deployment in Q3 of 2018 (expected)
Conclusion
Cryptic Ocean is a blockchain technology company that provides end-to-end blockchain development and blockchain consulting services to multiple business domains.
Our goal is to help companies adopt new technologies and simplify complicated issues that arise during technology evolution.
We also focus on enabling peer-to-peer agricultural transactions and processing while cutting out the middlemen.
Contact us for the best solutions about the use of blockchain technology to solve the toughest challenges faced by the world today.
FAQ’s
Is Loopring a good investment?
Loopring is a potentially excellent crypto to invest in because it is building the foundation in which a DEX application is built on.
What is Loopring?
Loopring is an open protocol and a decentralized exchange.
It is developing an open protocol/wallet which people can use to trade tokens right from their wallet, unlike using Centralized Exchanges or the Blockchain’s DEX.
Where can I buy Unibright Crypto?
Unibright could be easily purchased either cryptocurrency at Coinbase using your Credit Card or even Bank Account.
What is Unibright Crypto?
Unibright is a fairly new blockchain project that’s self-described as the unified framework for blockchain-based business integration.
Must read our other blocks on blockchain.