What is Loopring (LRC)?
Future of LRC Cryptocurrency and know how to buy LRC

#1 - Loopring (LRC): The Basics

What is Loopring (LRC)?

  1. Loopring is an open-sourced token exchange protocol for decentralized exchanges. The protocol operates on three different blockchains; namely Ethereum, Neo, and Qtum. It is an “automated execution system” that facilitates trade across different cryptocurrency exchanges. Loopring trades are done via a set of smart contracts that are open and free and can be used by Decentralized Applications (dApps). The Loopring protocol project is being governed by Loopring Foundation, a non-profit organization located in Shanghai, China.
  2. Looprints wishes to serve as an open standardized base for the development of decentralized applications that integrate cryptocurrency exchange functionality. The platform does not require the token holder to deposit or lock their token in exchanges for trading. This means that even during the trade, all the tokens remain on the blockchain in their respective addresses.
  3. LRC token or more specifically “Loopring token on the Ethereum blockchain” is the native cryptocurrency of the Loopring platform. The token has two primary functions: Firstly, it is used as a gas to fuel the smart contracts and secondly, to be put in the Loopring smart contracts as a reward for order-ring makers.

Loopring Development

  1. Loopring foundation was founded on June 22, 2017, by Daniel Wang who also serves as CEO of the Foundation. Daniel came up with the idea of Loopring in October 2016, due to his experience with shortcomings in centralized exchanges. Other than Daniel, Jay Zhou (CMO) and Johnston Chen (COO) are also part of the core team.
  2. Prior to Loopring, Daniel has been involved in other projects on multiple levels. He has co-founded Yunrang Technology and Coinport Exchange and has been Senior Director & Blockchain Researcher at Zhongan Technology. In addition, He has also served as Google Tech Lead.
  3. The Foundation held its token sale between August 1–16, 2017. The sale was launched with a soft and hard cap of 50,000 and 120,000 Ether, respectively. At the end of the token sale, the foundation was able to reach the hard cap, which was worth $45 million at that time. Loopring had minted a total of 1,374,956,262 LRC tokens.

 

#2 - What are the benefits of Loopring?

Loopring Technology

  1. Loopring is not a decentralized exchange (DEX) in itself, but a blockchain protocol that can allow the creation of decentralized exchanges on multiple blockchains. Loopring protocol disassembles centralized components of exchanges and adds open standard smart contracts and other decentralized components that are vital to prevent issues like front-sunning, Sybil or DOS Attacks, and other fraudulent acts.

Loopring order-ring

Loopring orders are based on Unidirectional Order Model (UDOM). UDOM orders are defined in token exchange requests, selling and buying amount (amountS & amountB). Instead of a single order, UDOM can pair up to 16 orders in a circular trade, which increases the overall liquidity and also helps in price improvements. However, UDOM is only applicable in case of an equal or greater exchange rate than the rate that is defined by the user.

The Loopring platform includes several decentralized actors in its ecosystem, where each actor performs an important role in the ecosystem. The combined effort of these participants enable the functionalities on a cryptocurrency exchange.

  1. Wallets: Users will require a wallet interface to store tokens and place token exchange orders as most of the trading will occur directly from within their wallets. Users will be incentivized in their wallets with shared LTC fee with miners, for placing new orders.
  2. Consortium Liquidity Sharing Blockchain/RelayMesh: Loopring has developed a consortium blockchain which can facilitate near real-time order sharing. It features a relay-mesh network for orders and liquidity sharing, which allows new nodes to join an existing network by running Loopring relay software. Once joined, new nodes can start sharing liquidity with other relays over the consortium blockchain. Nodes also have the liberty to run independently without joining the consortium.
  3. Relays/ Ring-Miners: Relays are nodes that are responsible for receiving orders from wallets and those that are shared on relay-mesh. The nodes also perform additional tasks, such as maintaining order book and sharing orders with other relays. Some relays can choose to create new order-rings by combining and arranging different matchable orders into an order-ring, This is called Ring-Mining and is an off-chain process. Relays that create new order-rings are called Ring-Miners.
  4. Loopring Protocol Smart Contracts (LPSC): Relays rely on the events broadcasted by LPSC for updating their trade history and order books. LPSCs are a set of open-sourced and free smart contracts that are responsible for following functions:
    1. – Checking and verifying order-rings that are received from ring-miners.
    2. – Settling transactions and transferring tokens on users’ behalf.
    3. – Incentivising wallets and ring-miners with LRC fee.
    4. – Broadcasting the above-mentioned events to relays.
  5. Asset Tokenization Services (ATS): Loopring depends on Asset Tokenization Services, which are run by trust-worthy entities. ATS enable Loopring protocol to allow trading of assets that are otherwise can not be directly traded on the protocol. ATS can facilitate the trading of tokens of supported blockchain with both physical assets and virtual assets on other blockchains.

Exchange Process

  1. A token exchange order is placed by the user from within his wallet. Once the order is processed, users also need to attach LRC tokens for rewarding order-ring miners.
  2. Loopring smart contracts are authorized by the wallet to access the information about the token type and amount specified by the user in the first step. However, the tokens do not leave the user’s wallet during when the order is being processed.
  3. The order is then forwarded to the network with a uniques digital signature. And then, the order is relayed by the wallet to nodes in the network.
  4. Relays update their order books by listening to the events broadcasted by the Loopring smart contract and forward the orders to other relays and ring-miners for starting the order processing.
  5. The ring-miners then pair the order with other orders. This process is called ring-matching. Then the order is partially or fully fulfilled by the ring-miners on an equal or greater exchange rate.
  6. Loopring smart contracts then perform cross-checks on data that is provided by the ring-miners. After the data has been verified, smart contracts settle the order either fully or partially, which depends on the amount of the tokens in the user’s wallet. Ring-miners are then compensated by either a margin or the LRC fee.

 

#3 - How to Buy and store Loopring token?

How to Buy Loopring Token?

  1. LRC token is available on several leading cryptocurrency exchanges, such as Binance, Upbit, Bittrex, CoinExchange, HitBTC, OKEx, IDAX, Gate.io, and others. LRC is mostly paired with Bitcoin and Ethereum.
  2. Since Loopring token is available on many exchanges, users can be overwhelmed when comparing rates across exchanges. Here, CoinSwitch can help users to make trading a pleasant experience.
  3. CoinSwitch is the largest cryptocurrency trading platform that allows trading of over 350 cryptocurrencies with more than 45000 possible pairs. Users can take advantage of live price charts aggregated from all exchanges to compare and trade LRC in real-time.

LRC Storage

The Loopring team provides an official web wallet with DEX integrated, called Loopr Wallex. Loopring will reward 20% of order-ring matching fees to the wallets that help users producing new orders. The development team is also planning to launch the native wallet on iOS. Other than official wallet LRC can also be stored on third parties Ethereum compatible wallets. Some popular options are listed below:

  • MyEtherWallet
  • Metamask
  • Coinomi
  • imToken
  • Ledger Nano S
  • Trezor

 

#4 - What is the future of Loopring?

Trend So Far

  1. As of August 2018, Loopring holds a market cap of over $128.4 million, which makes it 66th largest cryptocurrency by market capitalization in the cryptocurrency market. There are more than 572 million LRC tokens circulating in the market.
  2. Loopring began trading on the cryptocurrency market in August 2017. After its launch, Loopring witnessed a gradual increase in its price which continued until January 2018 when it touched its all-time high price of $2.59. Followed by this exponential increase, LRC price declined rapidly due to the market volatility at that time.
  3. Another increase in LRC price was observed during the last week of April 2018, when the Foundation announced airdropping its LRN token (Loopring token on Neo blockchain) to LRC token holders. As of August 2018, the price is floating near $0.224199.

Also Read: Complete Analysis of Loopring | Live Loopring (LRC) Price Charts And Predictions

Price History

Date

Open

High

Low

Close

Volume

Market Cap

Jul 31, 2018

0.256742

0.258787

0.231316

0.238758

12,373,000

146,875,588

May 01, 2018

0.929455

0.967196

0.867648

0.945355

28,863,300

531,716,800

Mar 01, 2018

0.556207

0.566393

0.529397

0.544842

3,988,730

313,407,328

Jan 02, 2018

0.457477

0.519139

0.426574

0.487843

10,427,400

130,916,648

Nov 01, 2017

0.159958

0.204511

0.151581

0.180812

3,133,780

45,775,416

Aug 30, 2017

0.118854

0.176763

0.076650

0.104810

200,829

-

Future Trends

For most of 2018, Loopring has demonstrated a bearish nature with some occasional improvements. Some analysts believe it to be a good investment for a long-term. As per the predictions, LRC price should reach over $3.0 by 2023, which is nearly a 1251.4% rise over its price in August 2018. However, the fluid nature of cryptocurrencies has always made them hard to predict, so these predictions are also not untouched from volatility and are likely to be changed in the future.

 

#5 - How is Loopring different from other cryptocurrencies?

  1. People might perceive Loopring to be similar to Binance, Kucoin and some other exchanges with their own tokens. However, as discussed earlier, Loopring is not a DEX but a modular protocol that can be integrated into DEXs and dApps to allow them cross exchange trading.
  2. Loopring token should also not be compared with Bitcoin and other peer-to-peer transactions oriented cryptocurrencies. Although LRC can also be used for P2P transactions, the motive of its creation is to use LRC as gas and rewards on the Loopring platform.
  3. Unlike most cryptocurrencies, Loopring is a blockchain agnostic protocol, which means that it can easily be implemented on any public blockchain that supports smart contract functionality. So far, it has been implemented on Ethereum, Neo, and Qtum and Loopring team has plans for expanding the protocol to other blockchains in the future.

 

#6 - Should you invest in Loopring?

  1. As cryptocurrencies are being adopted rapidly by mainstream businesses, the need for better cryptocurrency exchanges is also rising with it. Loopring protocol is trying to be successful where the centralized exchanges have failed. The biggest advantage it has is its ease of implementation by dApps and DEXs.
  2. Loopring is being developed by a team that has a rich experience in relevant industries and has been able to deliver results on time. Apart from the development team, Loopring also stands to benefit from a board of expert advisors, most notably, Hongfei Da who is the founder of Neo blockchain project.
  3. Loopring has managed to score many partnerships over time, such as Neo, Obsidian Capital, Alpha Chain, Vite, FBG Capital, Matrix CIB, China Growth Capital, etc. The protocol has been fairly popular as well, As of August 2018, Loopring protocol has been or is being integrated into several dApps and wallets like: imToken, QBao, Tokenest, DEXLAB, GTEX, CPOO, MyToken, Tokenest, and some others.
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