Loopring (LRC) – What You Really Need to Know
What is Loopring?
Loopring is a decentralized protocol for the exchange of tokens and an automated execution system. With Loopring, which is built on Ethereum, it is possible to trade assets across exchanges. Loopring pools all orders that are sent to them and fill them through the order books of multiple different exchanges.
Every exchange, centralized or decentralized that integrates Loopring can offer their users cross-exchange liquidity, reduced counterparty risk, and best price offers. With Loopring funds of traders remain in their wallets until an order is filled, this means there is no lock-up or deposits of funds. Looprings mechanism allows orders to be broken down into multiple smaller orders so that they can be filled through various exchanges and with the best prices.
Users who wish to make a trade submit their order to Loopring, signing it off with their private key. This data is sent to the Loopring smart contract as well as several relayer nodes. The relayer nodes are maintaining an order book, and when your order is matched, the smart contract exchanges your desired tokens with your funds.
So-called “Ring-miners” make sure that several broken down orders are filled until the whole order is completely filled. This is called “forming a ring.” For this specific tasks, Ring-miners get compensated in Looprings native token, LRC. Although Loopring is blockchain agnostic, LRC is an ERC20 token.
Loopring was founded by Daniel Wang, and an ICO was held from 1. to 16. August 2017. The project is based in China and 45,000,000 USD was raised.
Can Loopring be mined?
Loopring cannot actually be mined. The term “mining” is used as a metaphor here, the job of a Ring-miner is to find matchable orders on various exchanges to form a “ring.”
This requires a lot of data processing and the use of a database, Ethereum nodes, a JSON API, etc.… high-performance Linux servers are probably best suited for this task.
What differs Loopring from other Cryptocurrencies?
Looprings closest competitor is probably Bancor Network. Loopring aims to reduce counterparty risk and costs for trading and help its users always to get the best offer.
What sets Loopring apart from the competition is the use of ring orders and ring matching.
How much is Loopring worth today?
What is the total and the circulating supply?
The total supply of LRC is 1,374,956,262. The circulating supply at the time of writing is 572,074,043 LRC.
Where can you buy LRC?
You can buy LRC on several cryptocurrency exchanges, most notably Binance and Bithump.
Can LRC be sold for cash?
You can sell LRC for cash on several cryptocurrency exchanges that have fiat-pairings, most notably Bithump.
It is working on releasing an open-source ring-mining software and an open-source wallet with Loopring support in 2018.
Verdict and Rating
5/10 Very innovative project and brings a real benefit in the form of increased liquidity and decreased counterparty risk. Very good from a technological point of view, but not that good for Investors. The supply is way too high for investing purposes.
DisclaimerThe writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
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