Loopring is a decentralised Layer 2 protocol built to enable fast, low-cost trading and payments on the Ethereum blockchain. It uses zkRollup technology to process thousands of transactions off-chain while still leveraging Ethereum’s security. This allows developers and users to trade assets, make payments, and interact with decentralised applications (dApps) more efficiently and with significantly lower fees compared to Ethereum Layer 1.
The Loopring protocol is powered by its native token, LRC, which is used for staking, governance, and paying protocol fees. As a non-custodial system, Loopring ensures users maintain full control of their assets while benefiting from fast execution and secure settlements.
Who created Loopring?
Loopring was founded in 2017 by Daniel Wang with a vision to create a high-performance protocol for decentralised trading on the Ethereum blockchain.
Daniel Wang, a software engineer and entrepreneur from China began his career as a Lead Software Engineer at Boston Scientific. He later joined Google as a Tech Lead and Senior Software Engineer, gaining experience in large-scale technology development. Before founding Loopring, Daniel also held a leadership role at JD.com, one of China’s largest e-commerce platforms, where he focused on blockchain and fintech innovation.
His goal with Loopring was to improve scalability and efficiency in decentralised finance (DeFi) by using zkRollup technology to power secure, low-cost, and non-custodial trading on Ethereum.
How does Loopring work?
Loopring operates as a Layer 2 scaling solution for Ethereum that enables fast, low-cost trading and payments while maintaining the security of the Ethereum mainnet. Instead of processing every transaction on-chain, Loopring uses zkRollups to bundle hundreds of transactions off-chain and submit them to Ethereum in a single proof. This reduces congestion and significantly lowers fees, making it ideal for decentralised exchanges (DEXs) and high-frequency transactions.
zkRollups work by creating a special proof that shows transactions are valid without sharing the full details. This proof is then sent to Ethereum to confirm everything is correct and secure. Unlike traditional systems like Proof of Stake (PoS) or Proof of Work (PoW), zkRollups don’t need people to stake tokens or use lots of energy to verify transactions.
Because zkRollups don’t require every node to process each transaction individually, they are far more efficient. Loopring’s model reduces costs while still relying on Ethereum’s PoS security, combining speed with trustlessness. This allows users to trade, pay, and interact with dApps without sacrificing decentralisation or control of their assets.
With its focus on performance, security, and non-custodial trading, Loopring supports the growth of scalable and user-friendly DeFi applications.
What is Loopring’s native cryptocurrency?
The native cryptocurrency of the Loopring protocol is LRC. It plays a central role in the ecosystem, where users can stake LRC to help secure the network and earn rewards. It is used to pay for transaction fees, power smart contracts, and incentivise the operators of decentralised exchanges built on Loopring.
LRC is also used for governance, allowing token holders to vote on important proposals that guide the development of the protocol. As Loopring continues to grow and support more decentralised finance (DeFi) services, LRC remains the core token for staking, governance, and powering secure, efficient trading.
Tip
Keen to explore Loopring a bit more? You can learn about LRC basics and get all the latest cryptocurrency news on Luno Discover.
Want to know how to buy, sell, send, or receive LRC? We’ve got answers in the following help articles:
This information is not intended to be nor does it constitute financial, tax, legal, investment or other advice; nor is it a call to trade. The information is intended as general market commentary for information purposes only. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Advisor.