Ethereum co-founder Vitalik Buterin has some positive things to say about Loopring, the zero-knowledge proof protocol that offers high throughput, security through its non-custodial protocol and lower transaction costs.
Ethereum, despite having come a long way and being the foundation for so many DApps and services, still has quite a long way to go before it can definitively become the “decentralized world computer.” The Ethereum network has proven itself useful for the launch of many services, and is the bedrock of decentralized finance (DeFi).
Perhaps the most well-known application of Ethereum is the collectible game CryptoKitties, which made the rounds at its peak - and raised much discussion about the transaction capabilities of Ethereum. The network experienced a bottleneck at the peak of CryptoKitties popularity. The game was a good test of Ethereum’s capabilities.
Vitalik tweeted in response to a few Twitter users, mentioning Loopring in a discussion about transaction performance. In combination with sharding, the horizontal scaling solution that splits the Ethereum network into “islands”, the network could theoretically reach an impressive transaction performance of 160k transactions per second. Ethereum currently performs at a rate of about 15 transactions per second.
The transaction performance improvements comes from the zkRollup construction. ZkRollup combines transactions, instead of handling them individually. The scaling solution could revolutionize the way exchanges operate going into the 2020s. Vitalik himself has previously talked about zkRollups.
In the time since the CryptoKitties bottleneck, Ethereum has steadily moved towards improving throughput, though it has experienced many delays. Ethereum 2.0, which is expected to bring a level of performance suitable for global use, is expected in 2021 and has many in the community excited for it.
2020 is an important year for Ethereum, with many changes set to take place before Ethereum 2.0 arrives. The next stage of Ethereum will bring Proof-of-Stake and better network performance, and many investors are hopeful that Ethereum will be able to live up to its potential with the changes.
Loopring Achieves x500 Improvement in December 2019
Loopring launched version 3.0 of its Loopring Protocol in 2019 and the new version has seen some remarkable numbers. Loopring 3.0 went live on the Ethereum mainnet in December 2019. The team announced that the first DEX that would be built on Loopring 3.0 would be WeDEX.
The numbers show that Loopring v3 is doing fantastically well, with over 393,518 trades already complete on the WeDEX beta, at a rate of about $0.0315 per trade. When larger block sizes are enabled, the team expects further improvements of an unprecedented degree, with cost savings & throughput experiencing a 500x improvement.