Understanding the whole mechanism of Loopring order matching, Loopring ICO, and Loopring mining.
Intro
Ethereum is one of the most popular blockchain platform well known for its development of smart contracts as well as decentralized applications. Basically, the cryptocurrency project provides a template to all of its developers throughout the world in order to create their own customized applications which would enable them to run on the Ethereum blockchain. It even enables them to develop their own cryptocurrency tokens by incorporating it’s ERC 20 protocol. All such tokens which are developed based on this protocol are traded on the Ethereum Blockchain itself. Let us now understand about the loopring token, loopring ICO, and loopring mining.
The Loopring project
Loopring token is one such initiative and ERC 20 protocol based Ethereum token and specifically is renowned for its decentralized exchange as well as automatic execution mechanism. One must not get confused and it is to be kept in mind that, it is not a decentralized exchange but it provides the functionalities of a decentralized exchange through its order matching and loop sharing mechanism.
Why is it so crucial?
The Loopring project collects all the orders within its pool and then looks out for various Centralised as well as Decentralized exchanges, in order to fill the orders with the best match. This particular feature enables its customers in order to gain the benefits of cross-border exchange. Even the overall cryptocurrency market is benefited as cross exchange liquidity is provided with such an initiative and the end customers would have a broader range of options for their orders. The Loopring mechanism is highly adaptive and the users of other cryptocurrency projects such as Ethereum, NEO, Qtum, etc can use this particular mechanism within their network.
How does the mechanism work?
The Loopring mechanism can be applied to all the cryptocurrency blockchain platforms which enable the smart contract functionality. Also if direct trades between two cryptocurrencies is not available on any of the centralized and decentralized exchanges, then the Loopring protocol would identify an intermediary cryptocurrency and execute both the two trades simultaneously in order to simulate the behavior of direct trade between two cryptocurrencies.
The Loopring project team members are exhilarating the cryptocurrency initiative with rapid pace in order to achieve their roadmaps. The project team members are highly keen in order to develop the best product as possible and therefore have also initiated many bug bounty programs. One of such initiatives offered $10,000 USD to any citizen who would come forward with a critical flaw in their implementation mechanism.
The Loopring ICO
The Loopring blockchain project had managed to raise almost 15 million US dollars during the period of the Loopring ICO, as all the regulatory experts watched this unprecedented crowdfunding. Daniel Wang, the founder and the main person behind the Loopring ICO, hand made it very transparent that the interface is quite bad but the underlying mechanism and the Order matching facility is very great.
During an interview, he also mentioned that their Loopring blockchain initiative had nothing to do with the real economy but everything was based on the virtual finances. The Loopring ICO enabled the investors throughout the world in order to invest in the blockchain platform in a very seamless manner. It is absolutely worth mentioning that the Loopring ICO, just spanned a duration of 15 days itself in the month of August 2017.
Loopring Mining
Loopring mining can be initiated very easily by using various performance calculating devices such as CPU, GPU, as well as application specific integrated circuits. The Loopring mining process can be initiated through the high-end Linux systems, according to reports. Loopring mining is basically a metaphor which is not similar to the Bitcoin mining but here the users need to match the specific orders from a huge database. Specifically, Loopring mining requires the usage of the ethereum nodes along with JSON API, IPFS, etc
Closing remarks as well as future of Loopring project
The cryptocurrency blockchain platforms seem to be very futuristic in its working mechanism as it provides a cross-border liquidity which was very essential in the current cryptocurrency space it would also enable the overall market to gain stability as it is highly volatile in nature.
