Loopring is a decentralized exchange (DEX) protocol in which traders can transact crypto-assets across various blockchains without being required to surrender their private keys to the custodians of centralized exchanges (CEX). Loopring, in other words, is a non-custodial cryptographic protocol that uses smart-contract algorithms to transact crypto assets without human involvement.
It thus tries to fulfill the most revolutionary promise of the blockchain revolution: To wit, decentralized Finance (DeFi). DeFi, which moves transactions from central institutions to impersonal networks, enables traders to secure themselves from malicious actors (hackers, thieves, etc.) and error-prone human beings.
The obstacle is that blockchain technology is slow. Conventional banks process transactions two hundred times as fast as Ethereum, upon which Loopring is built. In this respect, the vision of hyper-fast DEX protocol, but utterly purified of the human element, may appear to be a utopian illusion.
Even so, Loopring has traveled far to realize precisely this vision. In this article, we will examine the history of this daunting project and assess future prospects.
To scale up transactions by a hundredfold while maintaining the secure, non-custodial nature of the platform, Loopring uses what is called zkRollup protocol. Like Plasma protocol, zkRollup can be visualized as a secondary blockchain layered atop the main Ethereum chain.
The secondary, or “child,” chain can then be used to perform computation, the demanding of processing tasks, while the main chain can be used merely for storing the data thus derived. In other words, rather than processing each transaction in the main chain individually, zkRollup processes batches of the transaction, off-chain, and communicates the result to the main chain. While maintaining Ethereum-level security, Loopring can pool hundreds of transactions across several blockchains.
Loopring allows traders to retain full control over their funds. They are allowed to withdraw funds without having to undergo challenge periods of fraud proofs. At no point are they required either to surrender custody of their crypto assets or to trust the goodwill of network operators or third parties.
Loopring can process up to 2025 trades (throughputs) per second with On-Chain Data Availability (OCDA) or up to 16400 trades without. Loopering is also is cheap, charging only a tiny fraction of a cent per trade (compared to several dollars in conventional platforms,) which may eventually turn it into a standard vehicle for the deployment of high-frequency trading algorithms.
Loopring thus can be credited with going a long way in solving the most challenging problem of decentralized finance: enhancing performance without compromising security. At a time when several crypto exchanges have been victims of external hacking, and while others have been looted by malicious insiders, the world needs an alternative that is secure, transparent, and efficient. Loopring, if it can achieve its aims, has the potential to inaugurate a new age in finance altogether.
Loopring (LRC) Historical Price Analysis
After the Initial Coin Offering (ICO) in September 2017, Loopring token breached $2 in January 2018, before crashing almost immediately to 50 cents. After surging again to $1, the token then languished, for 2019 and much of 2020, at the range of 5-10 cents before climbing to the range of 40-50 cents at present.
Current Price, Market Cap, & Supply Details
At the time of writing, Loopring token is selling at 39 cents, having risen by 0.83 percent in the past 24 hours. The coin has a market cap of 484.25 million, with a total supply of 1.37 billion LRC.
Loopring (LRC) Future Price Forecast Predictions
Predicting future price is an inherently uncertain task, although with proper analytical tools and historical inference, one may venture a reasonable guess. The volatility of a given crypto asset must be taken into account, as must the environmental context of the entire crypto ecosystem.
Short Term Forecast
Long Term Forecast
*This price prediction is based on the data collected from various sources meant strictly for educational purposes only and not taken as investment advice. Users should do their own research before investing.
Loopring Price Prediction 2021
Directed by an experienced and accomplished team at its helm, Loopring is set to hold steady throughout the year even as cryptocurrency begins to interest more and more investors. As per the forecast and algorithmic analysis, the price of 1 Loopring Token (LPR) could potentially be around $0.581 in 2021
Loopring Price Prediction 2022
More and more traders, both individual and institutional, are likely to adapt blockchain to conduct algorithmic and high-frequency trades. Analysts forecast that Loopring, as one of the few platforms to offer the necessary tools for this purpose, will be in widespread use in the near future. As per the forecast and algorithmic analysis, the price of 1 Loopring Token could potentially be around $0.664 in 2022.
Loopring Price Prediction 2025
In a few years, blockchain technology will have penetrated much of society in the same way the internet did in the nineties or smartphones did in the late 2000s. Decentralized Finance will have taken the world by storm; many ordinary people will be using altcoin or stablecoin for ordinary purchases. Hardly a bank or an investment firm will remain that will not have a DEX protocol in its toolbox.
In the medium term, the future of Loopring is bright. It is likely to take over its competitors to offer traders and ordinary consumers the required functionalities at a cheap cost. Analysts foresee that, if it maintains the current momentum, it will undergo a sustained bull run for several years until 2025 and beyond.
As per the forecast and algorithmic analysis, the price of 1 Loopring token could potentially be around $1.10 in 2025.
Is Loopring a Good Investment?
Loopring owns sound conceptual foundations, cutting-edge technology, and a highly accomplished team (see below). With the blockchain revolution poised to take over the financial world in the near future, Loopring is likely to occupy its rightful position in the DeFi avant-garde.
Unlike other platforms, Loopring allows “ring-matching,” in which several orders from several traders are pooled together in the form of virtual rings. This allows orders to be split apart so that if an order cannot be fulfilled in a single transaction, it can be processed by a subsequent ring until the order is eventually filled.
However, competition is fierce, are rivals are not to be dismissed out of hand. Will Loopring compete with other Ethereum based DEX protocols such as Kyber, Bancor, or 0x protocol?
These platforms all promise instantaneous token exchange at a meager cost, although none except Loopring can boast of the innovative technology of “ring matching.” Investors will be wise to follow each of these platforms’ comparative trajectory in the coming months and years.
How to Buy Loopring?
Loopring is available in exchanges such as Bithumb, DragonEX, and Binance. You must first open an account in these exchanges and secure them with two-factor authentication. Loopring, in these exchanges, can only be exchanged for other cryptocurrencies such as bitcoin. Therefore, if you don’t have crypto already, you must first head over to Coinbase to buy your first batch of crypto with fiat currency such as USD.
More Information About Loopring
Since its beginning in Jun 2017, Loopring has put forth four major versions of the platform, called version 1.0, 1.5, 2.0, and 3.0, each more innovative than the last.
The first version offered the “ring-matching” feature discussed above; the second version (1.5) came up with an additional feature to eliminate front-running during trades; the third version allowed traders to use any ERC20 token, not just LRC, as a fee to relayers (although using LRC is still the cheapest option); and the latest version includes the aforementioned zkRollup protocol which enhances speed without sacrificing security.
The founder and CEO of Loopring is Daniel Wang, a software engineer from China. He held leadership positions in Boston Scientific and Google before founding Coinport, a centralized cryptocurrency exchange. He tried to offer “unprecedented transparency” in this exchange before moving unto Loopring DEX, the ultimate transparent network.
Jay Zhou worked in Ernst and Young and Paypal before turning to cryptocurrency. He co-wrote the original whitepaper for Loopring. He is now a mentor at Stanford, where he advises students on cryptocurrency and decentralized apps.
Loopring is an ambitious arrival in the DeFi scene and one of its best practitioners. With its fast throughput and secure architecture, it aims to transact cheap, frictionless trades across several blockchains without malicious or else fallible human intervention.
Compared to its competitors, it offers three unique features: “ring-matching” (in which orders across blockchain networks are grouped as rings so that any order that cannot be fulfilled in one transaction be split apart and conducted severally); “Dual Authoring (which prevents front-runners from running ahead of the order and stealing the trade before it is settled; and, finally, “Any Token as Fee” (which allows traders to use not just LRC but any ETH20 token in the platform.
This allows smooth operation across blockchains, as traders on a given platform can use their own preferred token. With sound fundamentals, robust architecture, and unique fundamentals, Loopring is poised to take the financial world by storm in the coming years.