Loopring Joins Cryptocurrency Bandwagon

Loopring, popularly known as decentralized exchange protocol, has emerged as a crypto token found in digital exchanges and equipped with automated execution platform. The token is built on Ethereum enabling end-users to buy and sell assets across multiple exchanges.

Founder Daniel Wang explained Loopring is not really an exchange but makes possible the exchange process through ring-sharing and matching of orders. The platform makes use of smart contracts like Ethereum, Qtum, and NEO.

With Loopring, traders are not obliged to deposit money to any exchange. Funds are kept in their wallets providing them with absolute control over their finances during the trading process. Thus, they can increase, decrease, or cancel orders before these are finally executed.

As a protocol, Loopring addresses issues and provides benefits relevant to those who are still new in cryptocurrency investments. The so-called ͞" automatic execution system͟" reduces trading costs as well as protects users from counterparty risk in case the other party fails to fulfill obligations. ͞"We create the financial structure of the future by bringing together the liquidity of virtual currencies.͟" Mr. Wang said.

Features of the Protocol

Loopring has several unique features that include reduced counterparty and exchange risk which means members are not compelled to entrust their tokens to exchanges for safekeeping. They hold on to the currencies avoiding threats like Distributed Denial of Service and bankruptcies.

It is decentralized or executed instantly through a decentralized Blockchain smart contract while controlling their funds. The order-sharing means the Loopring mechanism breaks order into several pieces; identifies quality exchanges as well as times for trading; and, uses logic for optimization of trading results.

Ring-matching is another ideal feature. Loopring facilitates an interface between the Blockchain platform and exchanges as a result of its decentralized nature. The balance sheet allows users to achieve significant liquidity in the market in two ways. It generates liquidity within the system and splits orders positioned across marketplaces at the same time.

Meanwhile, Loopring may be performed so tokens compatible with ERC-20 on said platform can be purchased or sold under this protocol. ERC-20 refers to a technical standard or model for smart contracts on Ethereum. ERC means (Ethereum Request for Comment). 20 means the number designated in such request.

Fears of Crypto Traders and Owners

The creators of Loopring know that crypto currencies are becoming more popular and traders or investors continue to join the bandwagon. However, downsides also surface such as the worries produced by recurring news that a centralized crypto exchange was hacked or reached the threshold of bankruptcy.

At the same time, some users experience trading on decentralized exchanges with lackluster volume with many bids either highly opportunistic or have insufficient funds. Besides, they need to store coins in several exchanges for fast execution of trades on fast-moving trade prospects.

It is necessary to move tokens frequently between owners’ wallets and the CEX to prevent huge losses to hacked accounts. The user must have sufficient ETH in their digital wallets before transferring tokens to the exchange’s account.

Benefits of Loopring

However, Mr. Wang underscores the benefits of the matching technology of Loopring. This platform can break trades across a number of counterparties for efficient execution compared to other decentralized exchange protocols. HEX, CEX, and DEX wallets can adopt this system making potential for liquidity more effective than competitors.

The straightforward and security aspects allow trades from wallets preferred by users. There are also fewer addresses and passwords to remember. These cases highlight the advantage of using Loopring. ͞"We present these opportunities to users. Those who want to share experiences may send us a message. Our bottom line is to highlight the protocol’s potentials,͟" Daniel added.

At an early stage, Loopring does not take market price orders because these are ranked according to time of placement. There is a ͞"sending order command͟" in which senders broadcast their orders to all exchanges connected to its protocol for partial or complete execution of orders.

Tokens are kept in the Blockchain addresses of users during the process of trading and exchanging. Clearing and settlement of transactions are performed within the ETH smart contract.

Roadmap and Vision

Loopring’s management is all set for its thrust onwards. The year 2018 is seen as an aggressive year for the realization and expansion of said protocol. Some of the landmarks on this plan include support from ERC 223 as well as hybrid trading with tokens (ERC 20 and non-ERC 20); availability of iOS and Android mobile wallets; implementation of decentralized governance or control; and, additional Blockchain platforms specifically Qtum and NEO.

The final point is part of an integral move so Loopring can turn into an authentic cross-Blockchain platform. The integration with NEO and Qtum will enable crosschain commerce. However, it will call for additional tokens which are LRQ for Qtum and LRN for NEO so the goal can be attained.

About Loopring

Loopring is headed by Daniel Wang who was former Google Tech head. He was also co-founder and Vice President of Yunrang Technology. Daniel operated a centralized crypto exchange known as Coin Port. This was in 2014. In an interview with media during that time, Mr. Wang admitted he tried to deal with issues that exchanges encountered. He found out it was not possible since said problems have been inherent to the centralized exchange prototype.

The Chief Marketing Officer is Jay Zhou who was with Ernst and Young in the past. He was one of the founders of SJ Consulting and worked in the Risk Operations Unit of PayPal. The Chief Operating Officer is Johnston Chen who was with 3NOD as Chief Information Officer.

Advisers include executives from Zhongan Tech (Xuefeng Li - Expert in token exchange & regulation); NEO founder Da Hongfei; and, Hitters Xu (Bitcoin Startup Camp founder, Anti Financial Blockchain director, and Nebula Blockchain founder with specialty in community operations and public Blockchain technology). Loopring is supported by several companies and organizations.

Check out the website of Loopring at https://loopring.org/en/index.html for additional information and inquiries.

Author- https://bitcointalk.org/index.php?action=profile;u=1188306;sa=summary