Loopring (LRC) Lowers ETH Gas Fees
In the market, the number of transactions of cryptocurrencies continues to grow. At the time of writing, there are over 17,200 digital currencies listed on CoinMarketCap. Of these cryptocurrencies, thousands are built on the Ethereum blockchain.
Recently, Loopring (LRC) made its debut in the cryptocurrency space. Despite its recent existence, this currency has already gained popularity among many cryptocurrency enthusiasts and investors. What is the reason? Let’s explore together.
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Learn more about Loopring
Loopring is a protocol or program built on top of the Ethereum blockchain or main chain (aka Layer 1). In a nutshell, Loopring is a layer 2 network protocol designed to improve the underlying network (layer 1). Among the upgrades are making the transaction process faster and less expensive, thereby improving the user experience.
You can think of a Layer 2 network like Loopring as another exit from the movie theater, so you don’t have to wait in a crowd. Loopring is built on top of the Ethereum network to help ease transaction congestion.
According to Loopring developers, its development made the protocol’s throughput (the speed at which the blockchain processes transactions) about a thousand times faster than Ethereum’s. They also claim that Loopring’s processing peaks can reach over 2,000 transactions per second (TPS).
Since transactions on Loopring take a different route, they are faster and cheaper than transactions on the Ethereum main chain. Even more interesting is its native utility token, also known as Loopring, coded as LRC.
What is LRC?
LRC is the Loopring network’s Ethereum-based cryptocurrency, launched in 2017. It is also known as the driving force behind the Loopring Decentralized Exchange (DEX) (launched in February 2020). Just like other cryptocurrencies in the market, this cryptocurrency has also experienced sudden price rises and falls with a total supply of 1,375,076,040 LRC.
In October 2021, LRC value growth leads other cryptocurrencies. Soon after, in November of the same year, the LRC cryptocurrency price reached an all-time high (ATH) at $3.80 per unit. But at the same time, as we said before, LRC is also a volatile currency. At the time of writing, the unit price of LRC is just over $0.9000.
In addition to its digital currency growing in popularity as one of the latest protocols in the cryptocurrency space, LRC has a lot of other features you need to know about. One of them is ZK-rollup, also known as the prime mover of Loopring.
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Loopring makes Ethereum transactions faster and cheaper
According to its website, the basic features of Loopring include security, high throughput, and low-cost transactions. Let’s take a quick look at these features:
- Secure Processes
- According to the Loopring website, it is an “open source, audited, non-custodial transaction and payment protocol”. In its ecosystem, people do not need to trust each other. Through Loopring, ZK-rollups can ensure that assets are always under the user’s control.
- High throughput rate
- Loopring can process thousands of payment and transaction requests off-chain in one batch, which improves transaction processing speed and eliminates the performance bottleneck of the Ethereum main chain.
- Reduced costs
- Gas consumption and overall transaction costs are reduced as most transactions and transfer settlements take place outside the Ethereum layer 1 network.
Now that we’ve seen the main features of Loopring, let’s dig deeper into its powerful driver, ZK-rollup.
ZK-rollup: the driving force behind Loopring
Zero-knowledge (ZK) rollups or zero-knowledge proofs are methods of processing transactions privately. It works by proving authenticity without providing a lot of transaction information.
It’s as if you told the security guard at a casino that you were of legal age and they let you in without asking for ID or any proof. It can also be understood that you can board the plane even if you do not show your ticket to the flight attendant.
Zero-knowledge rollup is essential for protocols in the cryptocurrency space that do not want to disclose too much information to third parties or central authorities. In short, this method avoids leaking or revealing unnecessary information.
Now, you might be curious to understand how ZK-rollups work. As the name suggests, ZK-rollups “aggregate” the collected batches of transactions into a single transaction and execute it on the main chain (such as the layer 1 Ethereum network). This operation can greatly reduce costs and speed up processing times, completing multiple transactions at once.
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More developments to come
From what we know so far, Loopring can “build protocols, infrastructure, and user-facing products for the future of finance.” It can provide strong security and reliable performance, creating a high-speed platform for exchange, payment, transaction and liquidity without sacrificing the security of the network and its users.
This cryptographically sound Ethereum protocol is also another great option if you want to save time, money, and other resources on security and compliance and focus on growing your business and other endeavors.
There’s a lot more to learn about Loopring, so be sure to do your research to understand the ins and outs of the protocol and its cryptocurrencies.
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April 24, 2024
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