We introduced Loopring (LRC) to the Wirex app back in June this year. But in case you’re still not familiar with it, let us give you the LRC lowdown.
LRC is the native token of Loopring, a DeFi protocol that allows developers to build their own decentralised crypto exchanges.
It aims to create an interconnected system of trading platforms which lets buyers and sellers access multiple platforms from a single dashboard and be matched together to make a trade.
Exchanges built on top of Loopring manage to avoid the slow transaction times and high costs commonly associated with decentralised exchanges, thanks to the use of a type of cryptography called zero-knowledge rollups, or ZK-Rollups. These reduce the number of transactions that need to be confirmed by the Ethereum network, by enabling Looping exchanges to take place elsewhere.
LRC sits at the heart of the Loopring ecosystem. Those who stake LRC tokens govern the protocol and earn a portion of the trading fees paid to it by way of reward.
The token can also be bought and exchanged in the Wirex app at live OTC rates, as well as spent in real life with your multicurrency Wirex card.
The Looping Foundation was created in 2017 by Chinese software engineer and entrepreneur, Daniel Wang. Wang previously worked as a senior software engineer at Google and a senior director of engineering at JD.com. In 2014, he founded a centralised crypto exchange called Coinport.
There’s been increased interest in ZK-Rollup solutions lately, in part thanks to Ethereum’s own Vitalik Buterin stating that he believed them to be a long-term fix for the network’s scaling issues. This has led to a recent LRC rally, which saw the token appreciate by close to 1000%.