Review on Loopring by francis fernandez
Loopring: fully compatible exchange networks within the same blockchain
Loopring is a digital currency that works under the Ethereum blockchain, which is used for the exchange of crypto assets between different exchange networks through the purchase and sale of digital currencies; by using smart contracts that operate from your own wallet.
Under this operating mechanism; smart contracts act as managers of the Loopring tokens to carry out the sale and purchase once the agreed price is achieved. The platform's virtual currency is known by the acronym LRC and due to its hosting on the Ethereum chain it uses the ERC-20 token to manage exchange transactions in smart contracts. LRC tokens are used only to award rewards to miners and to pay fees for trading operations on the Loopring network. The purpose of this project is to create a comprehensive ecosystem of exchange platforms that guarantees the most convenient prices by entering the Loopring encrypted code in the order register of all other exchange networks. This favors an increase in the level of liquidity. In this sense, the main advantage that Loopring offers is to provide users with the possibility of acquiring cryptocurrencies without mobilizing the funds in their wallet but only with the use of their account.
This in turn reduces the risk of electronic fraud in other wallets or exchanges. This mechanism undoubtedly advances towards a decentralized process of exchange platforms. Thanks to the ring algorithm of the Loopring programming code, your miners can perform operations with multiple tokens
Under this platform, how is the exchange carried out?
The buying and selling process is carried out under a smart contract between two members. Once the buyer user makes the request for currency, the order is sent to the network for validation by the miners. Loopring obtains the data and, after verification, authorizes the transaction through a smart contract.
PRO:
Pros
- Allows you to make exchanges without leaving your native wallet.
- It allows to make purchases of cryptocurrencies without blocking the funds in the wallet.
- Avoid the risk of electronic fraud by keeping the funds within the same platform. Has flexibility to interact with other exchange networks.
Cons
- It does not support fiat money.
