“Ethereum’s 2.0 upgrade seems a long way from being completed, there is help happening now” –Paul Ebeling
The blockchain-based project Loopring has developed a layer 2, or companion system, technology to help Ethereum scale, or increase capacity, ahead of its upgrade by as much as 1,000X, according to the info we have researched. Plus, the improvements in scalability do not affect the Ethereum protocol’s security.
Investors are so confident in Loopring’s technology the price of its LRC currency rose by 8,250% between May 2020 and the coin’s all-time high of $3.83 in November 2021.
Loopring is a program designed to work on Top of Ethereum’s layer 1, or base, blockchain. This means that Loopring seeks to make the experience of using Ethereum faster by processing elements of Ethereum transactions on its own network.
Loopring’s developers say it helps the protocol reach throughput approximately 1,000X greater than Ethereum, with peaks of 2,025 transactions a sec. Unlike Ethereum’s high fees, transactions on Loopring cost less than a US penny.
You have heard of other blockchains, such as Avalanche and Solana, that also claim to be faster and cheaper than Ethereum. But, unlike Loopring, these are known as layer 1 blockchains, meaning they are independent blockchains with their own validators like Ethereum.
Loopring’s token powers an eponymous decentralized exchange that lets you trade Ethereum tokens, like USDC, AAVE and ETH, at a fraction of the cost of decentralized applications native to the Ethereum blockchain, such as Uniswap.
As of 22 December 2021, CoinMarketCap listed Loopring’s daily volume as $13-M; Uniswap, the most popular DEX (decentralized exchange), posted daily volume of $1.3-B.
LRC launched in Y 2017 and primarily powers Loopring’s decentralized exchange , which launched in February 2020. When using the DEX, you have to pay in LRC each time you process a trade. Precisely 80% of the money goes to liquidity providers, and the remainder is split between insurers and Loopring’s DAO (decentralized autonomous organization).
Some analysts believe LRC’s price is pegged to the success of Ethereum and rival scaling systems and layer 1 blockchains. Some think the need for scaling will dissipate if Ethereum scales itself, while Ethereum’s co-founder, thinks the 2 advancements will complement each other.
Have a prosperous Christmas week, Keep the Faith!