Loopring.io completed over a million transactions in the first three months. At the same time, it became clear that exchanges alone could not make a significant contribution to Ethereum expansion, and most users may be interested in a simple transfer of value, but not in their exchange. We think that if we could only attract more users to zkRollup, we could easily avoid paying gas commissions. This thought soon led to action, when community calls turned our attention to transfers (payments), ”write the developers.
Amid the latest announcement, the LRC token price has increased from $ 0.065 to $ 0.11. During the week, growth exceeded 100%.
Loopring uses zkRollup to handle Ethereum escalation issues.
Launched a DEX in December.
Last week it launched Loopring Pay so users can easily make payments.
As the world of Ethereum Layer 2 comes into focus, one player who contributed to solving scale problems on the eternally clogged network is a self-made Chinese protocol called Loopring.
Loopring Pay
Loopring has just launched a new payment product called Loopring Pay, which aspires to be a kind of PayPal for crypto. Built on Loopring v3.0, an ETH Layer 2 scaling protocol using zkRollup, Loopring Pay allows users to send ETH and ERC20 tokens without worrying about usual Ethereum congestion and expensive gas fees.
Startup Loopring has released a crypto alternative to PayPal based on the ZK-Rollups layer 2 scaling solution that could solve the current Ethereum network congestion problem.
Loopring Pay allows the transfer of ETH and ERC20 tokens in near real time and at a fee of only $ 0.00006 per transaction.
As the start-up writes in a blog post about the launch of Loopring Pay, the solution was developed in response to the huge increase in gas rates and prices, as well as delays in the Ethereum network. Currently, the biggest use case for Ethereum is value transfer via Tether (USDT), however it is also the largest consumer of gas. Loopring Pay can change this as only marginal gas fees are charged for the transfer.
From a user point of view, Loopring Pay initially works similarly to PayPal. Since all transactions are done through Loopring ZK-Rollups, this means that users must be in the ZK-Rollup to send or receive these fast and free payments. Registration is done through the Loopring.io website and ensures that the user's Ethereum address is linked to a "slot" (account ID) in the off-chain account system (Merkle tree). Matthew Finestone, Director of Corporate Development at Loopring stated:
Right now this feels basically like an "internal transfer" on the Loopring Exchange, but we'll build more skillful and payment-focused flows in our next Loopring Wallet. Also, other wallets and apps will be able to use the Loopring protocol or APIs to allow scalable payments based on Ethereum as well.
By integrating Loopring ZK-Rollups for payments in other wallets, services and portals, a certain burden could be removed from the Ethereum network. The rates resulting from ZK-Rollup based payments are marginal. As Finestone points out, all transactions on Ethereum cost something. However, due to technology, Loopring requires only $ 0.00006 per transaction.
So we can afford to offer free transfers to users. This may change at a low rate in the future.
Loopring isn't the first to experiment with Ethereum with zkRollup. The technology allows Loopring to batch process thousands of requests outside of Ethereum's core network, while allowing users to maintain custody. But Loopring was the first to launch a real technology-based product.
The Loopring Story
Founded in 2016 by Daniel Wang, a former Google technical leader, Loopring is registered in the British Virgin Islands, but has a team of predominantly Chinese developers in Shanghai.
Initially, Wang had wanted to build a decentralized exchange, but was unable to overcome the problem of Ethereum's clogged network. As a result, he decided to find a new performance solution to fix Ethereum first.
After Loopring resolved the scalability issue, the team set to work building two products in addition to the protocol. First, it launched a decentralized exchange in December 2019 that is 100% non-custodial and has a 1000 times higher performance than current Layer 1 competitors. After the exchange was established, a natural extension was to build a payment system so that the same user could trade on the exchange and transfer money through payments. One stone, two birds.
PayPal for ETH
Zhou says that building a continuous payment system is Loopring's great opportunity. "I used to work at Paypal and I can definitely see Loopring becoming PayPal for encryption," he said. "We are also going to launch a new smart wallet, called Hebao, which will allow users to create an account using an email address. No more remembering private keys.
The Loopring exchange also has its native LRC token, a token similar to most exchange tokens that allows users to bet and pay fees associated with trade and transfer.
Loopring won't be the last ETH Layer 2 solution to solve Ethereum's network problem. What differentiates one product from another will not only be technical progress, but also the strategy for going to market. If the real world already has Paypal, let alone other instant payment products, Loopring needs to identify use cases that differentiate its innovative technology.
Loopring.io completed over a million transactions in the first three months. At the same time, it became clear that exchanges alone could not make a significant contribution to Ethereum expansion, and most users may be interested in a simple transfer of value, but not in their exchange. We think that if we could only attract more users to zkRollup, we could easily avoid paying gas commissions. This thought soon led to action, when community calls turned our attention to transfers (payments), ”write the developers.
Amid the latest announcement, the LRC token price has increased from $ 0.065 to $ 0.11. During the week, growth exceeded 100%.
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