What Is Loopring (LRC)? How It Works & Where To Buy It?

Loopring is an innovative open protocol that is a layer-2 scaling solution for decentralized cryptocurrency exchanges (DeFi). The protocol aims to utilize the best features from centralized and decentralized exchanges to create the most optimized exchange.

LRC is the governance token of the Loopring protocol. LRC is currently the 67th largest cryptocurrency by market capitalization.

How Loopring (LRC) Works

The principle behind the Loopring protocol is to enhance the scalability, functionality, and affordability of current crypto exchanges through its zkRollup.

There has been a considerable amount of controversy surrounding gas fees and congested blockchain networks – especially with Ethereum gas fees having hit a high of $200 recently.

Many individuals are well versed in how to use centralized exchanges but don’t necessarily understand the risks involved. One of the main risks involved in the custodial nature of centralized exchanges is exchanges holding funds for individuals, without individuals holding their actual tokens safely in a wallet.

In the history of crypto, there have been hundreds of exploits of exchanges where users have lost their investments because of hackers. It may not seem like a necessary thing to do but individuals are always encouraged to try and safeguard their tokens as best as possible.

The Loopring network aims to solve a host of these issues that currently plague the crypto space. The Loopring team has worked hard to bring about solutions to some of the most prominent issues that plague the crypto space.

What makes Loopring work so efficiently is the unique way in which it can share liquidity by combining up to 16 orders into circular trades. Loopring aims to use this to solve previous issues that various mechanisms faced. Instead of offering only one vs one trading pairs, there is a combination of trades that helps the protocol to share liquidity effectively.

The implementation of zk-Rollups allows for the system to perform various functions, credibly, without necessarily needing to know the details. It’s a sort of verification system that bolsters credibility and plays an integral role in the growth of the Loopring ecosystem.

What Is Loopring (LRC) Used For?

The Loopring protocol essentially improves the functionality of existing decentralized and centralized exchanges with its unique value proponents.

Traders are now able to utilize a Loopring exchange because it offers them an enhanced trading experience that can process more than 2,000 transactions per second. This gives non-custodial exchanges the same functionality as other centralized exchanges.

Additionally, holders of more than 250,000 LRC tokens that stake Loopring tokens get access to the on-chain data availability.

Another unique built-in feature is the deflationary mechanism of Loopring. A Loopring token/tokens can be slashed due to bad actors that aren’t acting in the best interests of the network. This ends up having a positive impact on the Loopring price – this isn’t always the case with every project but in economic terms, scarcity is generally linked to price appreciation.

Like most other cryptocurrencies, the LRC price experiences daily fluctuations. Experienced traders can capitalize on these price movements and make a profit on a decentralized or centralized exchange.

Where To Buy Loopring (LRC)

LRC has cemented itself in the list of the top 100 cryptocurrencies in the world. This is largely thanks to the unique value proposition that the protocol has – it improves decentralized finance in ways that were previously deemed to be inaccessible.

LRC tokens can be purchased on several crypto exchanges. But, before purchasing LRC tokens, you’ll need to deposit fiat onto a specific exchange, and sequentially LRC tokens will be credited to your LRC digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store the LRC.

Five of the most popular crypto exchanges in use are:

1. Binance
2. Coinbase
3. KuCoin
4. Gate.io
5. Crypto.com

When purchasing any crypto tokens on an exchange users can opt to transfer those tokens to a more secure wallet. Users can choose one of the more popular and trusted digital wallets like Metamask or Trust wallet, for example.

Most individuals choose to keep their tokens off-exchange because there have been several exchange hacks over recent years. Choosing to send tokens to a digital wallet or hardware wallet is generally considered to be the safest way to store tokens.

FAQs About Loopring (LRC)

How long has Loopring (LRC) existed?

Loopring was initially launched in 2017 and has since undergone multiple upgrades. The CEO of Loopring Foundation is Daniel Wang who is an influential and well-respected software engineer.

Loopring held its initial coin offering in August 2017 and raised more than $45,000,000 – the ICO token price was 1 LRC = $0.06.

Currently, the trading price of LRC is still more than 8x the initial coin offering price.

What’s controversial about Loopring (LRC)?

There is always controversy when it comes to crypto projects. There are always communities of people that either align with a project or don’t believe in a project. Projects spend lots of money on marketing and also run slander campaigns against their competitors.

Let’s take a look at the top controversy surrounding Loopring (LRC).

• Stiff competition – Loopring protocol is changing the way a decentralized exchange can function more optimally. Even though there are unique features like a Loopring wallet and a focus on off-chain functionality, several competitors are offering similar scaling solutions.

  The Loopring platform allows DEXs to operate similarly to centralized cryptocurrency exchanges but so do other projects like 0x and Kyber.

How many Loopring (LRC) tokens are there?

At the time of writing, Loopring (LRC) has a circulating supply of 1.33B LRC.

The total supply of Loopring (LRC) is 1,373,873,439.

Can Loopring (LRC) be mined?

Loopring (LRC) can’t be mined. The LRC token is the governance token of the Loopring protocol and utilizes a proof of stake mechanism.

The Loopring cryptocurrency acts as a layer-2 scaling solution for the Ethereum network among others. However, users can earn additional yields by staking their LRC tokens by using various DeFi products like staking and liquidity provision.

What is the market cap of Loopring (LRC)?

The market cap of Loopring (LRC) is the total amount of coins in circulation multiplied by the current market price of Loopring (LRC).

Loopring (LRC) Market Cap = 1.33B LRC x $0.52 = $694 million (67th largest market cap).

Note that the market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of Loopring (LRC)

Loopring protocol has established itself as a credible and innovative scaling solution. However, there are several similar crypto projects.

As mentioned, Loopring’s competitors include:

• OX
• Kyber Network

What Are The Future Plans For Loopring and the LRC Token?

The Loopring protocol has already managed to amass a huge community and has attracted a large number of developers and retail investors. The growth of the DeFi sector has surged in recent months which has led to a tremendous demand for DeFi products like decentralized exchanges.

These DEXs offer users innovative ways to earn additional yields by participating in staking, liquidity provision, and farming. Loopring DAO continues to pioneer sustainable ways to maximize user experience, and earning potential and still provide users with lower fees than they’ve become accustomed to in the crypto space.

The team at Loopring is planning on improving the scaling solutions, improving the affordability of transaction fees, and bolstering the user adoption of the protocol.

Pros And Cons Of Loopring (LRC)

Pros:

• Enhanced scaling solutions – The Loopring protocol offers very unique scaling solutions that can facilitate more than 2,000 transactions per second.
• Real solution – There is a definite need for a layer-2 scaling solution that caters specifically to DeFi protocols. Loopring has made using the Ethereum network and other networks much more accessible and affordable than it previously was.
• Relatively high user adoption – Loopring DEX and the Loopring project as a whole have already amassed a large number of users. The solution has quickly grown to host users seeking to participate in DEXs that have previously been unable to participate (due to high gas fees and network congestion).
• Governance token – The LRC token allows individuals to help secure the network and obtain voting rights for holding LRC tokens. The mechanism helps users play an integral part in the future of the protocol, and reap the benefits of the protocol’s success.
• Low transaction fees – Loopring’s transaction cost is incredibly affordable compared to other protocols and this has been one of the major reasons that the protocol has performed well in recent years. When compared to the Ethereum network, Loopring’s pricing is unrivaled and allows a larger portion of users access to DeFi.

  Going forward, transaction fees are going to continue playing a key role in the adoption of decentralized exchanges, DeFi, and the progress of crypto in general.

Cons:

• Competition – Although Loopring has grown in popularity over recent years, it is still facing steep competition from other similar blockchain solutions. The competitors of Loopring have quickly grown their communities, established major partnerships, and provided users with much-needed solutions. If Loopring network wants to become a key player in the layer-2 sector, the project will need to remain innovative and offer better solutions than its competitors.