CRYPTO NEWS AGREGATOR
Wed, Jun 10, 2020 5:00 PM by Sumit Bera

Loopring Pay: One More Layer-2 Solution For Increasing ETH Bandwidth

loopring open-source protocol
Loopring recently launched the ZK-Rollup exchange, which could theoretically reach a bandwidth of 2500 TPS. Also, the Ethereum team is optimistic about the future effectiveness of their merger projects, as it is expected that they will increase the blockchain bandwidth to 2,500–3,000 TPS and up to 2,000–10,000 TPS in combination with segmentation.

Loopring is an open-source exchange protocol that has been audited by SECBIT and is not associated with the storage of funds, which means that with the Loopring ecosystem you do not need to trust third parties. Tokens are under the control of the user, and Ethereum guarantees security. Loopring performs most of the operations, including matching orders and settling transactions, outside the Ethereum blockchain. This design significantly reduces gas consumption and, consequently, the total estimated cost to fractions of a cent. But Loopring decided to go even further in its evolution.

The Loopring developers announced the launch of the Loopring Pay service for transfers of Ethereum and ERC20 tokens using zkRollup technology.

According to the announcement, this will allow transfers to be made instantly, free of charge, and with the same security benefits as when using the Ethereum base level. Developers significantly noted that transactions with Loopring Pay require neither gas expenses nor any additional fees.

zkRollup

The zkRollup technology was proposed by the developer Barry Whitehat at the end of 2018 and is a second-level solution that allows using one transaction on the blockchain to validate many transactions in the sidechain. Scaling with the help of zkRollup is supported by Vitalik Buterin and the Ethereum Foundation.

Vitalik Buterin himself spoke about a concept called zkRollups, which, from his words, was a method of applying evidence with zero disclosure. According to Buterin, along with sharding technology, Rollups would increase the Ethereum blockchain bandwidth up to 27,000 transactions per second. This cryptographic protocol allows confirming the presence of certain data without the need for disclosure, and due to this, the anonymity of the money transfer participants is preserved.

Loopring Pay functionality is currently available through the Loopring Exchange project’s own exchange. In the future, its support will appear in a separate Loopring Wallet, as well as in other wallets and applications that want to integrate the Loopring protocol through the API.

Loopring supports scalable decentralized exchanges by batch processing thousands of requests out of the chain with reliably correct execution through ZKP (zkRollup). Base chain performance is not a bottleneck.

First, there was the idea

Loopring specializes in Ethereum scaling solutions, and until recently, the main product was a non-custodian exchange. Recently, it received support for the first implementation of zkRollup on Ethereum, which, according to the developers, will allow scaling the blockchain from the perspective of increasing bandwidth and reducing costs thousandfold, without sacrificing guarantees of self-storage of assets.

In the first three months of its existence, Loopring.io has fulfilled more than a million transactions. It was understood for the developers that exchanges can’t make a remarkable contribution to Ethereum scaling. However, a lot of users might have been interested in the simple transfer of ETH value, not in its exchange only. That’s how the decision to attract more users to zkRollup was made. The small benefit of exemption from gas commissions only added interest to this project.

That mysterious bandwidth

According to the recent news, the bandwidth of Ethereum will be increased tremendously.

Loopring Pay, implementation of sharding technology, and switching to PoS algorithm – all in all, Ethereum founders do their best to solve the main problem of the blockchain.

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