Loopring (LRC) is trading up more than 13% today, so it was time to take a look at the coin.
Loopring is a DEX protocol designed to enable cross-exchange of cryptocurrencies through decentralized exchanges built on top of it. Other DEXs like Airswap, Kyber Network, or Ether Delta can also utilize its services. Loopring protocol hopes to allow its wallets to become money-makers; not by extracting rent from users, but by turning wallets into exchanges or wallexes. It is a project that is very similar to 0x.
In their words, LRC is an “automated execution system” built on Ethereum that will allow its users to trade assets across exchanges. It isn’t a decentralized exchange. Rather, it facilitates decentralized exchanging through ring-sharing and order matching.
LRC intermediates trust between blockchains and exchanges, allowing trading members to retain custody of their funds. For ERC20 tokens initially.
Loopring is a decentralized trade convention and a “mechanized execution framework” based on Ethereum that will enable its clients to exchange resources crosswise over trades. It isn’t a decentralized trade. Or maybe, it encourages decentralized trading through ring-sharing and request coordinating.
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Overall, the project’s success hinges on these key features.
- Loopring currently has three cryptocurrency tokens: LRC (Ethereum), LRN (NEO), and LRQ (Qtum). Each is used to enable trades without locking cryptocurrency balances.
- Ring Miners match, verify, and settle trades via Order Rings stored on smart contracts. LRx tokens are used in the backend as intermediaries to make the trades technically possible.
- Loopring pulls trade data from as many exchanges as possible to match buy and sell orders and enable faster, cheaper peer-to-peer trades.
For the present moment, the vital thing to comprehend is that Loopring will pool all requests sent to its system and take care of these requests through the request books of numerous trades.
Recently, the company published an interesting roadmap for the year. LRC claims that its development will be centered on two core themes: innovation and focus. Its definition of “innovation” is to adopt new technologies while pursuing a philosophy of continuous improvement for the Loopring protocol. Its theme for “focus” will see a shift in the platform’s priorities; reportedly abandoning non-core research and development and instead focusing on its strengths and strategic projects.
An apparent priority for Loopring this year will be to refine its Protocol 2.X series and add some additional features.