Investing in Loopring: Everything You Should Know
Loopring (LRC) is a layer 2 technology project that aims to expand and boost Etherium’s capacity by more than 1000 times. The scaling improvements will not affect Ethereum’s security protocols, which makes this project a serious game changer. It also enables anyone to create responsive DEXs and offers various powerful protocols, tools, and infrastructures to streamline the creation and operation of DEX.
Due to the immense trust put into this project, the LRC coin value increased by 8% in November 2021. The coin then reached its peak value at around $3.4080. That begin said, there’s a lot more to Loopring than just value.
Read below as we try to explain more about this amazing and potentially game-changing project by Loopring.
The Loopring protocol
The Loopring team designed a program that can function on top of Ethereum’s blockchain. Its main aim is for everyone who deals in Ethereum transactions to have a faster and more seamless experience.
So, even though Ethereum is fast, no one can say no to more speed. The relieved transaction—congestion, will allow individuals and businesses to make transactions faster which will mean more profits and less time spent waiting in front of a laptop for a transaction to process.
In addition to that, this project makes Etherium more environmentally friendly as gas usage is brought down to a bare minimum. On top of that, fees are significantly reduced and everyone can enjoy Etherium transactions.
How many coins are in circulation?
Loopring’s circulating supply is around 1,245,991,469 LRC. The current LRC price is around $0.30, which makes it a good investment.
Of course, as with any crypto, you will need a wallet to store it safely. You can find the wallet as a mobile app, and its name is Loopring wallet. Of course, you will have to be careful if you are planning to invest in crypto. The market is extremely volatile, but it seems that the LRC coin is one of the best long-term investment opportunities for every crypto lover.
How does it work?
The beauty of Loopring is that it processes large batches of transactions off-chain (ETHEREUM). To achieve error-free and lighting fast operations, Loopring uses zkRollups, which are layer 2 solutions that allow computers to claim data ownership without actually sharing it. The ZK in zkRollup stands for zero-knowledge and that is the protocol that Loopring is built around.
In addition to that, looping uses rings to fill out orders. The way those rings work is that they support up to 16 orders and then a loop is created which enables a series of trades to be strung together (ring matching).
Why is it so popular?
Loopring brings together the best of both decentralized and centralized cryptocurrency exchanges, with innovative use of ZkRollups for higher throughputs and lower costs while its non-custodial technology provides an increase in security of centralized exchanges.
Loopring’s high-performance capabilities allow algorithmic traders to trade high-frequency strategies on DEXs for the first time ever.
Furthermore, Loopring uses a cryptographic solution to prevent frontrunning, which can be defined as someone executing trades before the pending transactions are completed in order to capitalize and earn profits.
How can you trade with LRC?
To initiate a trade with LRC you will have funds in your wallet. You can place orders via your Loopring wallet anytime you want, and all you have to do is sign up and log in with your private key. This wallet is where you can manage all your funds and hatch plans about your next big trade with LRC.
When you place an order, it will then be processed and communicated to the smart contract on the platform and then forwarded to off-chain relay nodes. After that is completed, you will receive your preferred currency.
Loopring is backed by a team of development geniuses that aim to make Etherium faster than any other blockchain out there. When it comes to LRC, it’s always worth taking everything into account and deciding whether it’s worth an investment.
The possibilities seem endless but we all know how many investors lost their money during the 2022 crypto crash. That being said, even though LRC is one of the most promising coins due to the fascinating technology, it’s always important to perform your due diligence and never invest more than you can afford to lose.