In the era of the digital technology boom, many businesses aim to cut output costs and build a sustainable internal financial system by using platforms and applications that save transaction costs. Understanding that need, Loopring was born very early and became an automated decentralized protocol project from China trusted by many people. So where does the attraction of Loopring exchange come from, let's find out within the article below?
What is looping?
Loopring is an open protocol platform. China has built by building on Ethereum ‘s Blockchain technology. Loopring's automatic decentralized system helps to process all Crypto transactions in the most efficient way with the desire to protect users, minimize risks and transaction costs.
Loopring was created to give all types of exchanges the opportunity to introduce new functionality, allowing them to implement cross-chain and inter-exchange liquidity. In fact, any platform that uses smart contracts in its operations can integrate Loopring.
Loopring allows traders to eliminate the need to deposit their funds on the exchange to initiate the trading process. Thanks to it, you can forget about the need to transfer money somewhere else, outside of your wallet.
Highlights of Loopring
- Loopring provides traders, members, and institutions with a decentralized automated trading system that intelligently executes their trades across all the world's cryptocurrency exchange networks protect them from counterparty risk, and reduces their transaction costs.
- Loopring is an open-source protocol, not a centralized, traditional exchange. Any object following this protocol can participate in order matching. There are two types of Loopring service fees from the order matching system: transaction fees and call interruption fees.
- Loopring is a protocol that facilitates the decentralized exchange of ERC20 tokens on the Ethereum blockchain. The loop allows for the exchange of multiple tokens as well as liquidation of the exchange for the blockchain under different circumstances.
- Loopring benefits both users and exchanges by deferring risk to both parties in decentralized smart contracts, minimizing fees and costs to generate more profitable orders through via ring matching and instruction allocation as well as a cross-platform protocol.
Working mechanism of Loopring exchange
Loopring is an “ automated execution system ” that combines Ethereum and NEO technologies . Its functionality allows users to trade assets between different exchanges. There is no need to confuse the website with a decentralized exchange. For the most part, this is just a new exchange solution that will make buying and selling easier.
Loopring works like this:
- An order is placed in the system, which will be generated through the looprinio wallet.
- Next, the order is issued as a smart contract and transmitted to the nodes.
- The buttons check the ability to fulfill orders and start searching for the most suitable courses.
- After the order round is completed, the smart contracts check to see if they can be fulfilled.
- Finally, the smart contracts will transfer the money to the recipient. The process is atomic, money goes from wallet to wallet, with no intermediaries.
Note: An order round is a process in which several trades from different exchanges are combined to meet each other's conditions.
What is Loopring (LRC)?
- LRC is an ERC-20 token on the Ethereum blockchain. LRC is the coin of Loopring DEX , a decentralized exchange that integrates the Loopring protocol.
- In which, Loopring Protocol is the token conversion protocol. Same role as Kyber Network, Bancor Network, 0x Protocol. In Loopring Protocol, LRC is the token for Ethereum's token conversion protocol, in addition to LRN (NEO) , and LRQ (Qtum).
- Token Name: Loopring.
- Ticker: LRC.
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Decimal: 18.
- Contract: 0xbbbbca6a901c926f240b89eacb641d8aec7aeafd.
- Token type: Utility.
- Total Supply: 1,373,873,440 LRC.
- Circulating Supply: 1,245,991,468 LRC.
Token Sale: Has been successfully opened for sale since 2017 and is currently selling continuously, with steady liquidity.
Token Use: LRC is the foundation token of the Loopring decentralized exchange, so the LRC token is used to:
- Being a Fee Model pays Ring Miners to receive and maintain Order Books. Specifically, when a user creates an order book, an amount of LRC Token will be paid to the Ring-Miners as a fee.
- Participate in Decentralized Governance
LRC Token is burned in LRC Burn Rate. This method will help reduce the amount of LRC
- Token circulating in the market. LRC will be destroyed (burned). We know that wallets and Ring-miners will receive LRC with roles in Loopring Protocol as above. Some of that will be burned to reduce the total circulation.
How to earn & own LRC
- Buy LRC directly at exchanges
- Receive LRC Token from Bounty, Airdrop or gratitude programs organized by Loopring exchange
Wallets & Exchanges
- Storage wallet: LRC l à standard token ERC-20 should be stored in the wallet as: MetaMask, MyEtherWallet, Trust Wallet, for flooring, .. .
- Exchanges: Currently, LRC is being traded on many exchanges such as Loopring, Coinbase, Huobi, Binance, OKEx, etc.
Loopring Development Team
Loopring project was established in June 2017 and operates under the management of Loopring Foundation – a non-profit organization in Shanghai, China. Here are the three key members of the project:
- Daniel Wang (Founder and CEO): He used to be technology leader at Google, co-founder of Yunrang, senior technical director at JD.com, co-founder & CEO of Coinport exchange, Senior Director & Blockchain Researcher of Zhongan Technology.
- Jay Zhou (CMO): He graduated from Stanford University, is the founder of SJ Consulting, Risk Management at PayPal, and is an expert in Blockchain and Cryptocurrency.
- Johnston Chen (COO): Chief Information Officer at 3NOD, Product Specialist in Finance.
Loopring has been a decentralized exchange for a long time and has undergone development as directed. Notable stages passed include:
- May 2016: Officially introduced the project
- May 2017: Announcement of Whitepaper
- June 2017: Announcement of the plan to sell Loopring Tokens
- August 2017: End of fundraising with a token sale
- November 2017: Announcement of the smart contract (smart contract) Loopring12/2017: Listing LRC coin
- Feb 2018: Open source ring-mining software launched
- April 2018: Announced e-wallet version of Loopring protocol
Up to now, Loopring is continuing to develop and expand the features on its exchange and LRC still holds an important responsibility of governance throughout along with the sustainable development of the exchange.
In the above article, Review Invest has provided general information about Loopring exchange and LRC token. So far, Loopring has undergone a long development period and is one of the reputable projects to solve the problems of quick and low-cost token conversion.
A new feature of Loopring Protocol mentioned in their plan is that they will apply this solution to other Blockchain Platforms in the future such as LRC (Ethereum – already), LRN (NEO – already), LRQ (QTUM – future). The development prospect of the floor is quite large. However, you should research and consider carefully before investing.