I wrote the initial GME and Loopring post, which seemed to help and educate a lot of people on their potential partnership.
As Loopring rocketed yesterday, I wanted to try to explain why so many people are buying LRC. This coin has pure fundamentals, and provides one of the most incredible solutions to a problem we all complain about.
No More Gas Fees (You read the correctly)
Ethereum is a beast (ETH bull here) which is the future of cryptocurrency– but the Gas fees really can affect us. We are tired of paying $150+ in Gas fees, just to transfer or buy $100 worth of a cryptocurrency. That with long delays just to process a transaction can be brutally painful for our wallets!
Therefore, Loopring is being purchased and was the number one cryptocurrency yesterday. Loopring is a secure layer 2 protocol which allows users to transact without gas cost and without delay, while still enjoying the full self-custodial security of Ethereum.
Yes, in the future, there may be more services coming out to reduce Gas fees, but we have this here and now. And it works beautifully.
How does it do this?
Loopring uses a data structure called a Merkle Tree. It’s like an off-chain database where your assets are recorded and represented off the chain. However, you can still trade, make transfers on Ethereum without paying gas fees, as it all happens off chain.
Yes, trading is free. You can literally go from one currency to another. I could take my ETH, and swap this to USDC – no gas cost at all. With Gas these days, that would save me about $200.
Once you’re ready, click ‘Swap’ and your transaction will be executed instantly. No delay, no gas fee. Your L2 balance will be updated.
Its Blazing Fast & Your Funds Are Safe
As Loopring processes all activity off chain, it compresses all transactions into one transaction, and does all the hard work before it processes on the Ethereum network. This means it uses Ethereum’s security protocol, bit can process with a much higher throughput.
Its security is so good that if Loopring stops working, your funds are completely safe. As long as Ethereum exists, you can always withdraw your funds from the rollup.
So, it’s Faster, Safe and What Else?
Loopring also extends this technology to its exchange. The Loopring Exchange is a DEX which has an ANM, an orderbook and a mobile smart wallet. Liquidity staking is also there for anybody who wants to provide their assets to get a return.
With the potential GME partnership, Loopring allows companies to build platforms using its system. For example, a NFT platform, which has the scalability, security and speed of a CEX, whilst being able to cut gas fees as any company will take advantage of Loopring’s Layer 2 protocol.
The Loopring Smart Wallet is perfect for holding assets safely (you have the ability to lock your wallet), but allow perfect for traders who want to take advantage of cryptocurrency swings without having to pay huge gas fees per transactions. You only need to pay a fee to open a wallet. Simply open a wallet, activate it on to L2, and your ready. It’s also near instant to process a transaction.
To Trade: No Gas Fees
To Add Liquidity: No Gas Fees
To Swap Tokens: No Gas Fees
It’s blazing fast – no more delays or price slips waiting for a transaction to be processed due to high gas fees.
I hope this helps you understand why Loopring is rocketing, and why people are so excited. GME is just one potential partnership it could gain. With an exciting announcement coming in Q4 (mentioned by the Loopring CEO), this is about to rocket up the cryptocurrency coin rankings.