Got Scalable Decentralized Exchanges? Let’s Look At What Loopring’s Latest Protocol 3.0 Is Doing
Let’s Take A Look At What Loopring’s Latest Protocol 3.0 Is Offering
According to various reports circulating across the internet, it is being said that Protocol 3.0 will bring together a host of innovative blockchain technologies along with a zero-knowledge cryptography technique called ZKP — that will essentially allow the platform to dramatically increase its native throughput as well as make “fully-functional decentralized exchanges more competitive and financially viable for the masses”.
As many of our readers might already know, Loopring is an “open-source, blockchain-agnostic platform” that has been designed to facilitate the creation of DEXs on any public blockchain ecosystem that supports the use of smart contract technology.
At the time of writing this article, Loopring’s core dev team is focused on creating new offerings that can help mitigate the shortcomings of traditional DEXs — like poor liquidity and latency problems— while providing users with various benefits such as:
- Non-custodial trading
- Enhanced security and privacy
Lastly, it should also be pointed out that the company’s executive brass has recently signed agreements with a number of firms such as PwC China and Polymath so as to study new digital token offerings such as Stablecoins and STOs.
More On The Matter
Talking about the aforementioned protocol release and how the global crypto community was reacting to this news, Loopring CEO and Founder, Daniel Wang, was quoted as saying:
“The significance of the launch of Loopring Protocol 3.0 and its contribution to the development of truly scalable DEXs cannot be understated. This launch marks, in some ways, a considerable departure from previous iterations of our platform, and is a radical evolutionary leap towards making this exciting technology a reality for cryptocurrency users and traders around the globe. We may now see the rise of commercially-ready DEXs.”
Niche’ Technicalities to Remember
- As mentioned earlier, Protocol 3.0 substantially increases Loopring’s native throughput rate without compromising on the network’s security guarantees.
- 3.0 makes use of an advanced cryptographic technology called “Zero Knowledge Proofs (ZKPs)”.
- The latest protocol update allows for around 450 trades per second to be completed within the Ethereum ecosystem without the need of any on-chain data availability.
Lastly, talking about this latest upgrade, Loopring Lead Developer, Brecht Devos, stated that up until now, a number of tangible issues had prevented DEXs from entering the mainstream — with one of the primary reasons being scalability. However, he then added that as the global tech sector continued to advance, these exchange offerings would gradually eliminate a host of issues being faced by users of centralized exchanges on a near daily basis (such as third-party hacking incidents, personal data leaks etc).
He then closed out his statement by adding:
“Loopring 3.0 solves the shortcomings of traditional DEX models, increasing scalability and throughput with zero knowledge cryptography. Now, we’re excited to see project teams make the most of our open-sourced technology and develop DEXs and other dapps that give their users the best possible experience, and one that’s true to the decentralized ethos of blockchain technology.”