What is Loopring (LRC)?

By Roberto D. | CryptoFarm | 14 Apr 2020

Publish0x has introduced, or is about to introduce, Loopring (LRC) payments, but what is this cryptocurrency? Let's do some clarity.

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What is Loopring (LRC)?

Loopring is a protocol that allows a decentralized exchange of Erc20 tokens on the Ethereum blockchain.

Loopring allows multi-token transactions; these offer advantages to both users and exchanges by incorporating the risk into specific decentralized smart contracts, minimizing commissions.

To understand the usefulness of Loopring, you need to observe the problems of a centralized exchange.
In these cases, users must first deposit their tokens on the platform before they can exchange them with other tokens.
The tokens are sent to the exchage wallet where they effectively become an exchange debt owed to the user.

Subsequently, the users will exchange these their credits (towards the platform) with other users' credits, within the platform itself.
Finally, when users want to withdraw their credit, they will have the tokens sent to their own external wallet.

This actually causes a number of problems:

The lack of security (in this model, users have no control over their tokens.
It is true that this allows instant transactions on the exchange site, but with a certain amount of risk, in fact if the site closes or freezes, users actually lose their tokens;
The lack of transparency (everything could happen to the user's tokens when they are kept in the centralized exchange wallets);
The lack of liquidity (users within the platform can exchange only the token pairs supported by the platform itself, and only with sales or purchase orders from other users on the same platform.

So if there are not enough orders for a given currency the market is too "not very liquid", and the prices consequently too high, or too low.
Furthermore, if a given pair of tokens that a user wanted to exchange is not supported, they must transfer their funds to other exchanges (where the currency in question is supported).

Some more info ..

The Loopring team is very solid and very experienced.
All team members have worked in key positions in companies such as Google, PayPal and E&Y.

Daniel Wang is the founder; he was Tech Lead in Google, co-founder of Yunrang Technology, Senior Engineering Director in JD.com, Co-founder and CEO of Coinport Exchange, co-founder of Hygene Online, Senior Director & Blockchain Researcher of Zhongan Technology.

Ay Zhou is the CMO, and worked in E&Y, was Risk Operations in PayPal, and founder of SJ Consulting.

Johnston Chen is the COO, and was Chief Information Officer at 3NOD.

Loopring is currently in the top 100 of the ranking of the best cryptocurrencies by market capitalization.

From a speculative point of view, it is a currency to be purchased and held in the portfolio with a medium-long term operating perspective (9-18 months).

Given its popularity and diffusion, it is currently possible to buy LRC on the best known exchanges: Binance, OKEx, Bittrex, Yobit, CoinExchange HitBTC, etc ...

I personally recommend Binance.

What do you think of the introduction of Loopring on the platform? I would be happy to hear your opinion.
Thanks for your time and see you soon!

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