<p>Along with The Merge, words about layer-2 scaling solutions also attracted huge attention from the audience. People might have heard of <a href="https://www.builder.news/project-review/optimism-op-a-layer2-scaling-solution-for-ethereum-applications" alt="Optimism (OP) - A Layer-2 scaling solution for Ethereum applications" title="Optimism (OP) - A Layer-2 scaling solution for Ethereum applications" target="_blank" rel="" class="">Optimism project</a> at least once in the past 6 months of 2022, that is one of the most popular layer 2 protocols to know up to now. Another notable layer-2 project is Loopring which is based on zkRollup technology. What’s so special about Loopring? Let’s find out about Loopring review on <a href="https://www.builder.news/" alt="Builder.news" title="Builder.news" target="_blank" rel="" class="">Builder.news</a>.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed28f4baeee138a8e6023f659fee92.jpg" alt="Loopring review" title="Loopring review" width="600" height="400"></p><h2>Loopring overview</h2><h3>What is the Loopring protocol?</h3><p>Loopring is an example of a layer 2 project that enables Decentralized Exchanges (DEXs) and DeFi payment systems to be built on Ethereum while avoiding the network's severe congestion problems. By using zkRollup technology, Loopring is able to build exchanges that are free from the problems associated with expensive gas fees and are highly scalable. In details, the project enables throughput 1000 times greater than Ethereum while transaction fees are only a fraction of that. In this way, loopring helps to resolve difficulties arisen in Ethereum including high gas prices, limited scalability, and poor transaction rates by their constructing systems and applications.</p><p>Loopring recently created their own exchange and multiple layer 2 applications. These dApps are non-custodial trading and payment platforms with high performance. Loopring also created the Loopring Smart Wallet, the first Ethereum-based wallet to adopt zkRollup technology and one of the few wallets to use a “social recovery system” instead of a private key.</p><h3>Loopring relayer</h3><p>Loopring relayer is a backend system’s implementation that interacts with the protocol to make the zkRollup run. It produces rollup blocks, generates zkSNARK proofs of their validity, hosts and maintains the off-chain Merkle tree, publishes data and proofs to Ethereum and more. With regard to its use case, which ranges from orderbook matching to proof creation, the Loopering relayer has been substantially optimized.</p><h3>Loopering Layer2 App</h3><p>Loopring Layer2 App is a non-custodial exchange (AMM and orderbook) and payment platform. It offers the most sophisticated and pleasurable trading experience on Ethereum and is based on the Loopring protocol and operated by the Loopring relayer with a high level of security and no gas fees.</p><h2>Loopring review: Highlighted features</h2><h3>Run on zkRollups</h3><p>The key to Loopring's ability to offer cheaper fees and faster speeds is thanks to zkRollups. zkRollups allows Loopring to complete computations off-ETH chain and then group hundreds of transactions together into a single transaction that is sent back to the Ethereum network. These transactions are then settled directly on Ethereum's network, where Zero-Knowledge Proofs are used to confirm whether off-chain transactions are correct. Zero-Knowledge Proofs are a complex form of cryptography but in simple terms, zkRollups allow the network to validate transactions regardless of any proofs.</p><p><em><strong>&gt;&gt;&gt; Read more:&nbsp;</strong></em><a href="https://www.builder.news/crypto-insights/optimistic-rollups-zkrollups-EzsWo" alt="Optimistic Rollups versus ZK-Rollups - What is more optimal for Layer 2?" title="Optimistic Rollups versus ZK-Rollups - What is more optimal for Layer 2?" target="_blank" rel="" class=""><em><strong>Optimistic Rollups versus ZK-Rollups - What is more optimal for Layer 2?</strong></em></a></p><h3>Lower transaction costs</h3><p>Although there are still certain costs associated with using Loopring, Loopring does not have the same high gas costs as other Ethereum-based applications. The native currency of Loopring, $LRC, must be used to pay these transaction costs. These prices are lower and remain at a stable percentage regardless of market’s fluctuation.</p><h3>DAO empowering</h3><p>The transaction costs once collected from usres, Loopring layer-2 project will distribute 80% of $LRC to liquidity providers, 10% to insurers, and 10% to the Loopring DAO. How the fees they have amassed are entirely up to the discretion of the Loopring DAO. The DAO has several options, including the ability to give money and burn tokens. By paying the stakeholders who contribute and work inside the network, this fee ecology aims to sustain and strengthen the Loopring network.</p><h3>Innovative products</h3><p>Exchange and Payment, which are intended to create non-custodial AMMs, orderbook exchanges, and payment systems on Ethereum quickly and cheaply.</p><p><em><strong>&gt;&gt;&gt; Relevant:&nbsp;</strong></em><a href="https://www.builder.news/crypto-insights/an-ultimate-guide-on-automated-market-makers-PvtRU" alt="An ultimate guide on Automated Market Makers" title="An ultimate guide on Automated Market Makers" target="_blank" rel="" class=""><em><strong>An ultimate guide on Automated Market Makers</strong></em></a><em><strong>.</strong></em></p><h2>Loopring review: Tokenomics</h2><h3>Key metrics</h3><ul><li><p>Ticker: LRC</p></li><li><p>Contract: 0xef68e7c694f40c8202821edf525de3782458639f</p></li><li><p>Decimal: 18</p></li><li><p>Blockchain: Ethereum</p></li><li><p>Token Standard: ERC-20</p></li><li><p>Token type: Utility</p></li><li><p>Total Supply: 1,374,955,752 LRC</p></li><li><p>Circulating Supply: 828,954,240 LRC</p></li></ul><h3>LRC allocation</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed28f4baeee91aa8e6023f659fee92.jpg" alt="LRC token allocation" title="LRC token allocation" width="600" height="353"></p><h3>LRC release schedule</h3><p>The team presently holds 127,881,971 LRC, with every LRC token have been distributed.</p><h3>LRC use cases</h3><ul><li><p>Be ring miners' and relayers' fees.</p></li><li><p>Take part in proposals and DAO governance operations.</p></li><li><p>Burned in LRC Burn Rate.</p></li><li><p>Lock up to run Loopring DEX.</p></li><li><p>Reduce fees on DEXs by staking $LRC.</p></li></ul><h3>Where to buy $LRC</h3><p>Holders, and traders can get $LRC on both popular CEXs and DEXs including Binance, Huobi, Coinbase, Uniswap, Crypto.com.</p><h2>Loopring social channels</h2><ul><li><p>Loopring Medium: <a href="https://medium.com/loopring-protocol" target="_blank">https://medium.com/loopring-protocol</a>&nbsp;</p></li><li><p>Loopring Twitter:&nbsp;<a href="https://twitter.com/loopringorg" target="_blank">https://twitter.com/loopringorg</a></p></li><li><p>Loopring Discord:&nbsp;<a href="https://discord.gg/KkYccYp" target="_blank">https://discord.gg/KkYccYp</a></p></li><li><p>Loopring Youtube: <a href="https://www.youtube.com/c/loopring" target="_blank">https://www.youtube.com/c/loopring</a></p></li><li><p>Loopring Weibo: <a href="https://weibo.com/loopringfoundation" target="_blank">https://weibo.com/loopringfoundation</a></p></li><li><p>Loopring Reddit: <a href="https://reddit.com/r/loopringorg" target="_blank">https://reddit.com/r/loopringorg</a></p></li><li><p>Loopring Github: <a href="https://github.com/Loopring" target="_blank">https://github.com/Loopring</a></p></li></ul><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

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Loopring review: Where zkRollups become handy