Loopring : Using Smart Contracts To Exchange Digital Assets On Any Platform
Loopring is a decentralised exchange that’s building a blockchain to exchange digital assets without relying on intermediaries, whose actions we can’t control. Using smart contracts, it facilitates instant settlements on popular platforms like Ethereum, Neo and Qtum. Definitely an altcoin to keep an eye on.
(LRC)
Loopring
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Table of Contents
- 01 Ring Mining
- 04 Team
What is Loopring?
Loopring is an open protocol for building decentralised exchanges. With smart contracts, it can trade digital assets between off-chain operators bringing interoperability to the blockchain space. It enables people to have control over their own crypto-assets during the whole trading process instead of giving their money to centralized platforms. https://www.youtube.com/watch?v=LmCuoi1hCiU With all of the digital assets that are being created at an unprecedented rate, there is an obvious fuse case for linking them all together. The problem is that doing this requires trusting an intermediary or centralised exchange. Philosophically this goes against the spirit of cryptocurrency. Sending copies of your ID to what is essentially a startup is a daunting prospect, and exchanges are continually hacked because to use them users have to surrender their private key. Remember the Mt Gox hack? It is the most spoken about exchange hack, but since then there have been hundreds potentially thousands of other exchanges some small others very large that have suffered the same fate. The Binance phishing scam in early 2018, Bitfinex’s 72 million in missing tokens. Even Coinbase was hacked earlier this year.
Is Loopring A Decentralised Exchange?
Loopring is not a DEX, but a modular protocol for building DEXs on multiple blockchains. We disassemble the component parts of a traditional exchange and offer a set of public smart contracts and decentralized actors in its place. The roles in the network include wallets, relays, liquidity-sharing consortium blockchains, order book browsers, Ring-Miners, and asset tokenization services. Order Rings are the heart of trading on Loopring. It uses something called a unidirection order model. Rather than filling or partially filling the buy and sell orders on the platform, it mixes and matches multiple order on the platform. Since every order is just a exchange rate between two tokens and order rings can include up to 16 different trades in a singe order ring, there should be better liquidity than there is on most certralised exchanges

Ring Mining
Relays are nodes that receive orders from wallets and the underlying liquidity building relay mesh. They use this information to maintain public order books, trade history, and broadcast orders to other relay nodes. Ring mining is a feature not a requirement of relays. Ring mining is done completely off-chain, and it is a computational heavy process. Relays are free in how they choose to communicate with one another, how they build their order books, and how they mine order-rings (mining algorithms). I just want to reiterate at this point that Loopring is more of a tool kit for building decentralised exchanges than it is a decentralised exchange Different exchanges built on the platform are free to choose how consensus is reached and what mining algorithms are used.Smart Contracts and Asset Tokenization Services
LPSC are A set of public and free smart contracts that checks the order-rings prepared by the ring-miners. Like other smart contracts their purpose is to automate and automatically settle and transfers tokens without user intervention. Actions built into smart contracts can incentivizes ring-miners and wallets with fee and keep order books up to date.
Should I Invest In Loopring?
I think that along with Kyber Network and OmiseGo, Loopring is one of the most likely solutions for decentralised asset exchange and building interoperability between the various blockchains and ecosystems in the space. The LRC token has consistent daily trading volumes around 10 million USD. It is a top 50 altcoin that's held its value better than most altcoins in the current bear market. It is listed on popular exchanges like Bittrex and Binance. There is an active community, on Reddit and Telegraph, and the team and founder Daniel Wang host frequent AMA sessions. A lot of hype and news worthy events around this cryptocurrency are generated from partnerships with different cryptocurrencies. The team has proven their ability time and time again to from these partnerships. This is a long term hold. What Loopring are trying to do will take years to reach mass adoption. Short term, we have speculative pumps to look forward to.
Team
Loopring is a Chinese cryptocurrency lead by founder Daniel Wang. According to his LinkedIn page, he has previous experience with cryptocurrencies. In March of 2014, he founded a company called Coinport. They offer a bitcoin payment processor that is very popular in China. Prior to this he was worked for a company called JD.com as a high-level engineer.