The expansion of cryptocurrencies right now is dizzying, and there are already several ongoing attempts to scale up the speed of transaction processing and reduce transaction fees. While the Ethereum blockchain is the one that’s putting in the most work to make cryptocurrency transactions faster and cheaper, at the end of the day, the upgrades aren’t in place yet. This is where the Loopring protocol comes into the picture.
Developed by former Google software engineer Daniel Wang, the Loopring Project aims to multiply the operating speed of the smart contracts system that exists now. In doing so, the project is attempting to overhaul Ethereum. It also uses Zero-Knowledge (ZK) Proofs, which authenticates information without the exchange of exact details. Additionally, the Loopring Project facilitates trustless and anonymous transactions.
According to the claims of several developers, the project can scale up Layer 1 blockchains by a whopping 1,000x. It can also achieve transaction speeds of 2,025 TPS (transactions per second), which is nothing short of remarkable. Right now, the Ethereum blockchain can only handle around 14 transactions each second. The costs are significantly reduced by the Loopring Protocol as well, especially when you compare it with Ethereum, which is still notorious for its sky-high transaction costs (up to $200 per transaction).
This is how the Loopring Protocol works – it moves the processing to a secondary layer within the blockchain, which decongests the primary chain. Through ZK Rollups, the Loopring Protocol unlocks incredible speeds. Transactions are verified minus access to attached personal data. After validation of a transaction is complete, it can’t be reversed, altered, or tampered with.