Loopring (LRC)

A brief summary about Loopring (LRC), and what makes it unique.

Loopring (LRC)

What is Loopring?

Loopring is a protocol which is customized to build decentralized crypto exchanges. It combines the Centralized order matching feature of Centralized exchanges and the blockchain based order settlement system of DEXs to create a hybrid exchange. Currently, centralized exchanges that are controlled by private enterprises account for a majority of the trading volume of crypto currencies. Since the control of such large amounts of user funds lies inherently in the hands of a private authority, DEXs have emerged to address issues of control, transparency and data privacy. LRC is the native token of the Loopring protocol.

Why buy LRC?

Loopring utilizes the advantageous features of both these models to create a hybrid exchange which can combine up to 16 orders in a circular trade which greatly increases the speed, efficiency and liquidity of the exchange. Since centralized exchanges act as custodians of user wallets, a single targeted hacking attack can cause the entire system to fail, leading to huge financial losses for investors. Moreover, transaction data is stored in private records of the central enterprise, which can easily manipulate them to influence prices of coins. DEX trades are settled on a decentralized public ledger in the form of a blockchain.

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