The crypto world has undergone major changes since the introduction of bitcoin. However, as much as the world of cryptocurrency promises to provide a decentralized system, it is not without challenges. The biggest challenge is separating cryptocurrency from the centralized systems. Currently, the service providers of cryptocurrency are centralized hence making the whole idea almost vague. The fact that wallets are prone to attacks, will obviously discourage you. Additionally, most of the wallets are centralized which beats logic. However, the recently introduced cryptocurrencies are trying to come up with a new protocol that would change these vulnerabilities.
For instance, Loopring (LRC) is a new cryptocurrency that not only provides you with a decentralized automated execution platform but also gives its users a crypto token exchange platform, shielding users from counterparty risk and reducing the cost of trading.
Loopring is a crypto coin that continues to develop and seems to have a very bright future. In this article therefore, we are going to discuss the history of Loopring, its founders and its features. This will be aimed at giving you a better understanding of the crypto coin.
History of Loopring
The cryptocurrency was founded by Daniel Wang, a former JD.com employee. He was also the co-founder of Yunrang technology. Loopring was created to solve the centralized exchange risk problems. All the transactions in the platform are cleared through the smart contracts on the blockchain system. Currently as of this writing, there are about 1.4 billion Loopring coins in circulation. The currency can be used to pay some of the transactions for exchange and a deposit for exchange registration.
Other members of the team behind this cryptocurrency include;
- Jay Zhou
- Joe Mikhail
- Hoss Ma
- Leon wang
- Freeman Zhong
- Da Hongfei
- Alex Cheng
- Simon Zhu
Loopring was created to reduce the friction of trading between different centralized exchange platforms and hence allowing complete decentralization. The LRC (Loopring) protocol is a decentralized token exchange. This means that any number of applications that are decentralized can run through this platform which is different from the old fashion singular consumer platform. The platform plans on unifying the different liquidity for instance exchange platforms by using a wallet that will be Loopring enabled.
This will in turn allow faster connectivity than ever and make the exchange rates better. The best part of this technique is that the system will be able to bypass most of the security protocols in exchange platforms for instance exchange registration. It will be done by allowing in-wallets transfers hence this will boost the levels of security in the cryptocurrency and more importantly, it will boost the decentralization aspect.
Understanding Loopring & Its Features
Some of the features of this cryptocurrency include;
Risk free – for any transaction to take place in a decentralized system, one has to authorize the movement of the funds from their wallet. For this to be possible, smart contracts are allowed the chance to get access to your wallet. In the end, your funds will always be within your control. This will be beneficial to the users. Let’s say a given exchange disappears or their systems is hacked, you will still be able to own your assets without having to suffer the risk of losing them
Decentralization – as explained in the risk free section, decentralization means you have full control of your funds, when its being traded and what is being traded except when it is deployed by the smart contracts. The only option one can try to stop trade in such platforms is by shutting down the entire internet which might be difficult to do.
Order sharing – this means that your order is not supported by other blockchain protocols hence your order will be split into various small pieces therefore you will get the chance to benefit most from different exchange platforms. In short, you will be selling the highest bid possible and in turn buying the one of the cheapest ask in every platform you are participating in.
Ring matching – most exchange platforms will always match up the sell and buy orders. The Loopring platform will be able to long a ring match format on the orders in order to match them. The platform uses an internally build balance sheet to create the rings around participating exchange platforms hence this will increase the liquidity which will in turn offer top of the art order matching technique.
Cross-chain protocol – the founders of this platform have envisioned a blockchain agnostic even though it is still based on the Ethereum platform. Additionally, this project has been backed by different cryptocurrencies which include Qtum and NEO hence the idea will involve more than just one cryptocurrency.
To better understand how the Loopring functions, we are going to use a case study. Let’s say you want to trade crypto A for B, you will have to find a cryptocurrency platform that supports both of the cryptocurrencies. If you find an exchange platform can only support one of the cryptocurrency, you will have to go and register on another exchange platform that will support the other crypto B. This will be a long procedure that will consume most of your time. To top it all up, you will also have to give your personal details just to get access to that account.
After you get a new account, you will have to do a few preliminary trades just to authenticate how the platform works before resulting to your initial transaction. Additionally, you will have to incur more withdrawing and transaction fees. When you are ready to trade, you need to hope for more liquidity because if its less, the transaction may be difficult to complete. With Loopring, you are assured that the platform will be able to solve the above problems.
Additionally, having the chance to carry out your trades from your wallet, you will be able to reduce the chance of hack attacks as compared to other cryptocurrencies. Moreover, this way, you are able to get access to a variety of counterparties which is more than the ones you will be able to talk to in a given exchange platform.