Review on Loopring by Gabriel Medina
Exchange protocol that drives decentralization
LoopRing (LRC) is a decentralized exchange protocol based on Ethereum that will allow us to exchange assets through exchanges. However, it does not operate as a decentralized platform, but rather offers us an opportunity to exchange cryptocurrencies between different exchange houses. Although for now it only uses ERC20 tokens, the goal is to create an exchange network that ensures the best prices from all merchants.
The project was born in 2016 with the aim of bringing the necessary technology to promote decentralization to the exchange market, since the decentralized platforms that already exist were only guided by the names of traditional centralized exchanges.
Loopring is a decentralized protocol that runs on the Ethereum blockchain and uses its ERC20 token on which its own LRC currency is based. It also integrates Ethereum smart contracts into its system.
LRC tokens currently have two applications on the platform: one as a commission per transaction and as a reward for miners who help validate transactions.
LoopRing coins can be mined and therefore ring-miners receive rewards in LRC.
LoopRing has also designed its own wallet through which you can directly buy ERC20 cryptocurrencies. It is available in a web version Loopr and for mobile phones with iOS. As it is the standard Ethereum token, it is also available in most wallets that support ERC20.
The future goal of LoopRing is to increase the liquidity of cryptocurrencies and make it possible for the financial system to change its structure towards a decentralized and fair model for consumers.
Pros
- The funds that are deposited will be in a special contract and the validators resolve the orders outside of Ethereum.
- It is not necessary to give personal data or KYC.
- Virtually free deposits, withdrawals and registration.
- Free, instant inter-address Loopring transfers.
Cons
- This platform is still under development and does not have serious audits for now.
- You do not have an associated wallet yet (although it may be launched soon).
- The browser that you will use to access the exchange will generate a cookie with important information about your Loopring account. If you lose it, you could lose access to your funds (although you can make a backup).
