What is loopring? Loopring is a blockchain project designed to develop decentralized exchange (DEX) and application (dApp). In this article, you can find answers to frequently asked questions such as what Loopring is, what it offers, what is LRC coin, how to get it, what is it used for. As Kriptokoin.com, we have prepared it for our curious readers. Let’s examine the issue together.
What is a loopring?
Loopring is a decentralized exchange protocol running on the Ethereum Blockchain. The software was created to encourage users globally to produce cryptocurrency exchanges with new features. The project has a native cryptocurrency called LRC coin. This cryptocurrency has use cases in various areas such as the DeFi services and DEX offered by the platform. Like the Solana blockchain, the platform aims to provide an in-house solution to Ethereum’s high transaction fee and low speed problem.
However, unlike Solana, Loopring is not a blockchain but a protocol that runs on the Ethereum Blockchain. The project aims to solve Ethereum’s scalability problem through a technology called zkRollup. Expressed as zero knowledge proof, zkRollup is a new encryption technology. Thanks to this technology, users of the platform perform very fast transactions on DEX and pay low transaction fees. Aiming to gather the best aspects of centralized and decentralized exchanges, the platform works to provide liquidity to its own decentralized exchange.
What is LRC coin? What is it used for?
LRC coin is a token that works as the native cryptocurrency of the Loopring protocol. The token was created with the ERC-20 smart contract. LRC has several use cases. LRC token is required to trade cryptocurrencies on the decentralized exchange offered by the protocol. Users pay the transaction fee expense incurred when they transact within the DEX with LRC coin.
80% of the transaction fees paid goes to the liquidity providers while the remainder is split among the project’s decentralized autonomous organization (DAO). At the time of writing, LRC coin was the 75th largest cryptocurrency with a market cap of around $1.4 billion. In addition, 1.33 billion LRC were in circulation.
What are the advantages?
The value of the project is determined by the cryptocurrency industry and the popularity of the exchanges where these assets are traded. It is predicted that the crypto money industry will appreciate in the future. With increased adoption of these assets, Loopring’s value could increase as well. LRC coin is listed by the largest and most reliable cryptocurrency exchanges in the industry. This makes it easier for users to access and adopt the asset.
What are the disadvantages?
LRC token is a non-mining token. This means users cannot earn passive income through staking and processor mining. If the popularity of cryptocurrency exchanges decreases, the LRC price may decrease accordingly.
What is a loopring? Where to buy LRC coin?
LRC coin is supported by many reliable and high-volume cryptocurrency exchanges. These exchanges include crypto exchanges such as Binance, Huobi, OKEx, FTX. Investors interested in the Loopring project can become a member of one of these exchanges and buy the token by depositing money in their wallets.
17903
