Loopring is an Ethereum-based platform designed for the development of decentralized exchanges, allowing users to trade assets between exchanges.
What is Loopring?
It is a protocol developed under the umbrella of the Loopring Foundation founded by Daniel Wang. It is defined as a system that allows users to trade assets between exchanges. Loopring, built on the Ethereum blockchain, is a layer-2 protocol that aims to facilitate decentralized trading. It aims to facilitate trade through order matching. It pools the orders sent to the Loopring network and fills it through the order books of multiple exchanges. Loopring was created to increase the liquidity of the decentralized cryptocurrency exchange DEX. Centralized exchanges are currently the main trading channel of crypto trading services.
While quite popular, there are a few risks with using centralized exchanges. One of them is that it is based on trust. Centralized exchanges keep users’ funds between deposit and withdrawal processes. It runs the risk of being partially or completely lost due to potential cyber attacks, malicious people within the stock market, or regulatory interventions. Also, one of the other problems is the lack of transparency. The fact that trading does not happen on the blockchain makes price manipulations possible by the exchange. In addition, it also causes the user to use their funds for unauthorized purposes during escrow. Loopring protocol offers advantages while reducing or eliminating the disadvantages of decentralized exchanges with innovative solutions. In addition, Loopring aims to increase the efficiency of order transactions while increasing the liquidity of DEX.
What is LRC Coin?
The cryptocurrency of Ethereum-based Loopring is LRC Coin. The LRC Coin, created in the ERC-20 standard, has many use cases. LRC Coin is used to trade cryptocurrencies on the decentralized exchange offered by Loopring. In addition, users pay the transaction fee incurred as a result of the transaction in the DEX with LRC Coin. LRC Coin is a non-minable token. For this reason, users cannot earn passive income through staking and processor mining.
How Loopring Works
When users want to trade, they do not need to deposit money on the exchange to start trading. With Loopring, funds always stay in user wallets and are not locked by orders. Users have full rights over their money when performing transactions. It allows an order to be canceled, corrected or increased before it is executed.
Where and How to Buy LRC Coin?
LRC Coin is the native cryptocurrency of the Loopring platform. It is listed on many cryptocurrency exchanges. As an example of these; Binance, KuCoin, Kraken, Coinbase Exchange, Bitstamp, Uniswap (V2), Bithumb, Bittrex, OKX, Gate.io.
Investors who want to buy LRC Coin must first become a member of one of these platforms. Identity must be verified after membership and account creation. After all the information is entered completely, the desired amount of LRC Coins can be purchased on the trading page. Purchased LRC Coins can be used in transactions or stored in wallets for later use.
