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Loopring Announcement

As of early July 2023, Loopring has successfully deployed its Layer 3 (L3) on the Taiko alpha-3 zkEVM testnet, a move that promises to enhance scalability and optimize user experiences for its decentralized applications (dApps) and smart wallet.

Loopring's commitment to a multi-rollup environment is well-documented, and this recent development is a testament to that commitment. The organization's vision is to promote Zero-Knowledge (ZK) technology through its mobile smart contract wallet. The deployment of L3 on both Taiko and Ethereum is a significant stride towards achieving this vision, offering the necessary scalability to reach this objective.

The decision to deploy Layer 3 over Taiko Layer 2 is not without its merits. Loopring's platform has integrated an application-specific layer for Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi) applications. This integration promises to enhance user experience by reducing costs, a feat that is not achievable with the Ethereum Virtual Machine (EVM) alone. Furthermore, the integration can provide recursive proofs, a feature that can potentially reduce taxation costs.

Loopring

Loopring's reputation for delivering user convenience through ZK applications is well-established. Loopring was originally a protocol built on Ethereum's layer 2 that utilizes zk-rollup technology for scalability and security in decentralized finance (DeFi) and non-fungible token (NFT) applications. After a successful initial coin offering (ICO) in 2017, it became the first zkRollup-powered decentralized exchange (DEX) to launch on the Ethereum Mainnet in December 2019. Unlike Uniswap and Curve, which were developed directly on Ethereum's Mainnet, Loopring created the first zkRollup-powered DEX on layer 2. This allows for up to 3000 trades per second to be executed on the DEX at a fraction of the cost of an Ethereum Mainnet trade.

Loopring was founded by Daniel Wang and the Loopring team in 2017 with the goal of improving the DEX experience. Since then, Loopring has developed a protocol, relayer, DEX, smart wallet, and token to create a comprehensive ecosystem. Additionally, Loopring was one of the first rollups to issue its own native coin (LRC) via an airdrop in 2018. LRC is used for staking, fee payments, rewards and, in the future, governance with the introduction of the Loopring DAO.

One of the key benefits of this approach is the roll-up execution ecosystem, which offers cost advantages to a diverse range of users, including gamers, creators, and traders. These benefits underscore the limitations of relying solely on the EVM.

In the Layer 3 environment, certain taxes become cost-effective through the use of recursive proofs. These proofs are sent to Taiko, which employs a Type-1 design to facilitate the reuse of such proofs, thereby reducing computational costs.

Taiko

Taiko is a decentralized Ethereum's ZK-EVM rollup. It provides a way for developers and users of decentralized applications (dApps) that were built for the Ethereum Layer-1 chain (L1) to use Taiko's blockchain as if they were working on Ethereum L1. By doing so, dApps can be easily deployed on Taiko's network while maintaining similar security levels to those of Ethereum but with lower transaction fees than on the L1 chain.

Taiko's main goal is to prioritize EVM-equivalence, even down to the opcode level, while maintaining Ethereum-equivalence at a broader systems level. Taiko achieves this by mitigating any performance drawbacks associated with proving through its protocol design and by relinquishing Zk-friendly optimizations. Moreover, Taiko is a decentralized platform that solely relies on Ethereum public data, meaning anyone can run a node. It is also permissionless, allowing any proposer or prover to participate. Taiko is the result of a community effort, being a Type 1 ZK-EVM that is derived from the work of the Privacy & Scaling Explorations team at the Ethereum Foundation on ZK-EVM circuits.

In conclusion, Loopring's recent deployment on the Taiko alpha-3 zkEVM testnet is a significant step forward in the organization's commitment to promoting ZK technology and enhancing user experience. By integrating an application-specific layer for NFT and DeFi applications and providing cost-effective solutions, Loopring is setting a new standard in the blockchain technology landscape.