HomeCrypto for AdvancedWhat is loopring

What is loopring

What is loopring

Loopring is a software that runs on top of Ethereum's blockchain (a layer 1, or base, blockchain). This implies that Loopring aims to speed up the Ethereum experience by processing components of Ethereum transactions on its own network. Consider it like establishing a secondary road off the main highway to assist relieve congestion. Loopring's creators say that this enables the protocol to achieve throughput 1,000 times that of Ethereum, with peaks of 2,025 transactions per second. Unlike Ethereum's exorbitant costs, Loopring transactions cost less than a penny.

Other blockchains, such as Avalanche and Solana, that promise to be quicker and cheaper than Ethereum may have caught your attention. These, however, are characterized as layer 1 blockchains, as opposed to Loopring. This simply implies that they, like Ethereum, are autonomous blockchains with their own validators.

Loopring's token powers an eponymous decentralized exchange that allows you to trade Ethereum tokens like USDC, AAVE, and ETH for a fraction of the cost of decentralized Ethereum blockchain services like Uniswap. Loopring's daily volume was $13 million as of December 22, 2021, according to CoinMarketCap, whereas Uniswap had a daily volume of $1.3 billion.

Loopring achieves its high throughput and cheap cost through the use of zkRollups.

Zk is an abbreviation for zero-knowledge proofs. This is a means of discreetly processing transactions. It enables one party to demonstrate to another that something is true without disclosing any further information about the transaction itself.

A zero-knowledge proof may inform you that it is raining today without you having to look out the window, or it could show a border control agent that you are qualified to enter the nation without you having to provide your name and address. Zero-knowledge proofs are essential for bitcoin protocols that do not wish to release unnecessary information to third parties or rely on a central entity in the event of a failure.

Rollups are a sort of scaling mechanism that collects batches of transactions, then "rolls" them up into a single transaction that is processed on a base layer blockchain such as Ethereum. Rollups are a method of reducing costs and boosting speeds by processing numerous transactions at once and splitting the cost of a single transaction.

ZkRollups combines these two technologies. According to Looping, it is the most secure scaling method the industry is aware of, allowing users to access their assets under any conditions. It is appropriate for applications requiring trust lessness, such as decentralized exchanges or lenders.

The Loopring network is powered by the Loopring utility token (also known by its ticker, LRC).

Check out other levels

We use cookies to store, access and process personal data to give you the best online experience. By clicking Accept Cookies you consent to storing all cookies and ensure best website performance. You can modify cookie preferences or withdraw consent by clicking Cookie Settings. To find out more about cookies and purposes, read our Cookie Policy and Privacy Policy

Cookies settings


Cookie Control


What are cookies?

Cookies are small text files that enable us, and our service provides to uniquely identify your browser or device. Cookies normally work by assigning a unique number to your device and are stored on your browser by the websites that you visit as well as third-party service providers for those website. By the term cookies other technologies as SDKs, pixels and local storage are to be considered.


If Enabled

We may recognize you as a customer which enables customized services, content and advertising, services effectiveness and device recognition for enhanced security
We may improve your experience based on your previous session
We can keep track of your preferences and personalize services
We can improve the performance of Website.


If Disabled

We won't be able to remember your previous sessions, that won't allow us to tailor the website according to your preferences
Some features might not be available and user experience reduced without cookies


Strictly necessary means that essential functions of the Website can not be provided without using them. Because these cookies are essential for the properly working and secure of Website features and services, you cannot opt-out of using these technologies. You can still block them within your browser, but it might cause the disfunction of basic website features.

  • Setting privacy preferences
  • Secure log in
  • Secure connection during the usage of services
  • Filling forms

Analytics and performance tracking technologies to analyze how you use the Website.

  • Most viewed pages
  • Interaction with content
  • Error analysis
  • Testing and Measuring various design effectivity

The Website may use third-party advertising and marketing technologies.

  • Promote our services on other platforms and websites
  • Measure the effectiveness of our campaigns