What is Loopring?
Loopring is a decentralized protocol based on Ethereum network that provides parties (sellers and buyers) with an opportunity to exchange tokens and coins at best rate possible. Launched on August 30, 2017, it lets users exchange their cryptocurrencies on the platform with ring-miners automatically calculating the most efficient option.
Ring Miner Fee Structure
When you create an exchange order on Loopring, you specify:
- the maximum fee, and
- the percentage of the margin (that is between the price that you anticipated and a better deal if ring miner finds one) that you’re prepared to pay to ring miner.
When the deal is done, ring miner can choose which fee option to be paid. This model of fee generation is beneficial to both miner and users because it motivates miner to find you the best possible deal.
Loopring Competitors and LRC Token
The idea of providing an exchange protocol that eventually will replace the centralized exchanges is nothing new. You can find something similar in Komodo or 0x platforms, for example, while QUOINE is developing their exchange protocol that will link with Forex exchanges. Nevertheless, Loopring might catch its wave in the ocean of cryptocurrencies by trying to work together with centralized exchanges and DEXs.
Loopring token has a ticker symbol LRC; it is an Ethereum based token and can be stored in any ERC20 compatible wallet. LRC is used as a fuel for the Loopring protocol and the ring miner fee payments.