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About Loopring
Key Points
- LRC is the Ethereum-based cryptocurrency token of Loopring, an open protocol for building decentralized crypto exchanges.
- In 2020, the average daily trading volume of the entire cryptocurrency market fluctuated between $50-$200 million.
- Loopring combines centralized order matching with decentralized on-blockchain order settlement.
- LRC tokens became available to the public during an initial coin offering (ICO) in August 2017.
- The Loopring protocol was first deployed on Ethereum mainnet in December 2019.
Founder and CEO
- Daniel Wang, a software engineer and entrepreneur based in Shanghai, China.
About Loopring: Empowering a New Era of Decentralized Trading
Introducing Loopring (LRC): A Revolutionary Decentralized Exchange Protocol
LRC is the Ethereum-based cryptocurrency token of Loopring, an open protocol specifically designed to facilitate the creation of decentralized crypto exchanges.
In 2020, the daily trading volume of the entire cryptocurrency market oscillated within the approximate range of $50-$200 million. The majority of this trading activity is facilitated by centralized cryptocurrency exchanges — online platforms operated by private companies that custody users’ funds and facilitate the matching of buy and sell orders.
A plethora of drawbacks plague these platforms, prompting the emergence of a novel exchange paradigm – the decentralized model – aimed at mitigating these shortcomings. Nevertheless, fully decentralized exchanges are not immune to their own set of limitations.
Loopring’s ambitious objective is to synergistically merge the benefits of centralized order matching with the security of decentralized on-blockchain order settlement, thereby creating a hybridized product that leverages the strengths of both centralized and decentralized exchanges.
The LRC token was first made available to the general public through an initial coin offering (ICO) in August 2017, whereas the Loopring protocol was initially deployed on the Ethereum mainnet in December 2019.
The Visionaries Behind Loopring: Meet the Founders
The founder and current CEO of the Loopring Foundation, responsible for overseeing the development of the Loopring protocol, is Daniel Wang, a seasoned software engineer and entrepreneur based in Shanghai, China.
Wang holds a Bachelor’s degree in Computer Science from the University of Science and Technology of China, and a Master’s degree in the same field from Arizona State University, demonstrating a strong academic foundation in the realm of computer science.
Prior to founding Loopring, Wang accumulated a wealth of experience in prominent tech companies, having held various managerial and executive roles. Notably, he served as a lead software engineer at Boston Scientific, a renowned medical device manufacturer. Additionally, he was the senior director of engineering, overseeing search, recommendation, and ads systems at JD.com, China’s e-commerce giant. Furthermore, Wang’s impressive resume includes stints as a tech lead and senior software engineer at Google.
Notably, Wang has also co-established several ventures, including Yunrang (Beijing) Information Technology Ltd. and Coinport Technology Ltd., a cryptocurrency services firm.
Unveiling the Distinctive Characteristics of Loopring
At its core, Loopring seeks to synergize the benefits of both centralized and decentralized cryptocurrency exchanges, thereby crafting a protocol that harnesses their distinct strengths while mitigating their respective inefficiencies.
Centralized exchanges presently dominate the crypto trading landscape. Despite their popularity and convenience, utilizing a centralized exchange entails a multitude of risks, primarily stemming from their custodial nature. As these exchanges hold users’ funds in escrow between deposit and withdrawal, these assets are susceptible to partial or total loss due to potential hacker breaches, internal malicious activities, or regulatory interventions.
Another significant hurdle faced by centralized exchanges is the opacity of their operations: the fact that trades are not settled on the blockchain, but rather recorded in the exchange’s internal ledgers, creates an environment conducive to price manipulation by the exchange itself, and enables the unauthorized use of user funds while in custody.
In recent years, a novel trading paradigm has emerged to mitigate these issues: the decentralized crypto exchange (DEX). By eschewing the traditional model of custodial fund holding and internal trade processing, DEX facilitates direct connections between buy and sell orders, with trades settling on a public blockchain.
While mitigating the risks of custodial and transparency, decentralized exchanges (DEXs) also introduce their own set of drawbacks, primarily lower efficiency (in comparison to their centralized counterparts) due to the limited capabilities of the underlying blockchains and the issue of fragmented liquidity.
Loopring protocol endeavors to harness the benefits of decentralized exchanges while mitigating their inefficiencies through pioneering hybrid solutions. By centrally managing orders and settling trades on-blockchain, and aggregating up to 16 orders into circular trades, thereby transcending traditional one-to-one trading pairs, Loopring aims to significantly enhance the efficiency of order execution and bolster the liquidity of DEXs.
The Circulating Supply of Loopring [LRC] Coins: A Closer Look
The issuance of LRC tokens is governed by the decentralized, autonomous, and tamper-proof smart contracts that underpin the Loopring Protocol, ensuring a secure, transparent, and immutable token creation process.
The primary method of acquiring LRC is through a process known as ring mining, which serves to enhance the liquidity of the Loopring network. Unlike traditional pair-based matching, the protocol facilitates the mixing and matching of up to 16 orders for diverse cryptocurrencies, culminating in a circular trade, aptly termed an order ring.
Within the Loopring network, nodes are incentivized with LRC tokens for aggregating individual orders into cohesive order rings, maintaining publicly accessible order books and trade histories, and, in certain instances, broadcasting orders to other relays.
The Security Paradigm of the Loopring Network
Loopring operates seamlessly across the Ethereum and Neo blockchains, with plans underway to integrate the Qtum blockchain. Each of these networks boasts its own unique token: LRC and LRN, respectively, for Ethereum and Neo; upon launch, the Qtum network token will be designated as LRQ.
These tokens are underpinned by the robust hash functions inherent to their respective underlying blockchain platforms: LRC, secured by Ethereum’s Ethash; LRN, fortified by Neo’s dual-layered SHA256 and RIPEMD160; and LRQ, reinforced by Qtum’s proof-of-stake PoSv3 algorithm.
Where to Acquire Loopring (LRC): A Comprehensive Guide
LRC is listed on a multitude of reputable exchanges, including but not limited to:
- The esteemed Coinbase Pro
- Bilaxy, a prominent exchange
- OKEx, a leading digital asset platform
- Binance, a renowned cryptocurrency exchange
Associated Resources:
Loopring is an integral component of the burgeoning decentralized finance (DeFi) ecosystem — delve deeper into this realm at CoinMarketCap Alexandria
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