Loopring the Solution to high Ethereum gas fees?
As Ethereum users continued to cry about high transaction fees eating up their DeFi profits. Vitalik Buterin simply stated that the answer was already here. Use Looping! Essentially, the implication is that Layer 2 solutions with over 2500 TPS already exist for trading, we just have to embrace them.
To those replying with "gas fees are too high", my answer to that is "well then more people should be accepting payments directly through zksync/loopring/OMG". Seriously, scaling to 2500+ TPS for simple-payments applications is here, we just need to... use it. https://t.co/J2KMJyLKv6
— vitalik.eth (@VitalikButerin) September 1, 2020
What is Loopring?
Loopring is a decentralized exchange for trading tokens and making payments that use ZK-Rollups. Technology that can drastically lower transaction costs for end-users. As a result, the protocol can support 7000 trades per Ethereum block. To keep it simple, using zero-knowledge proofs takes all of the computation off the blockchain. It reduces the amount of data needed in a transaction.
Loopring also has a native token LRC, which holders can stake. This allows you to reduce fees, earn rewards, and help secure the protocol.
The solution to Eth scalability… With traders unhappy over the high gas fees to complete swaps on Uniswap. We should see Loopring DEX reaching new trading volume highs. The team is listing tokens with active communities such as YFI and BZRX. Along with, liquidity mining programs to support new markets.
- LRC itself has enjoyed the summer DeFi craze, as investors sought to buy into Eth scalability solutions.
Upcoming releases…Wider adoption looks imminent with the release of their app which will enable easy trading via mobile. Furthermore, Loopring 3.6 release in Q4 will solve the main user complaint of long deposit and withdrawal times.