The arrival of cryptocurrencies like LoopRing to the market was a real revolution in the way of seeing, generating, managing and using money. And it is that based on an innovative technology called Blockchain, these currencies supported by blockchains suffered from an exponential boom.
Along with the appearance of new cryptocurrencies, we can also find the emergence of new platforms focused on their use and management. One of the most outstanding, both for the practicality and for the versatility it offers is LoopRing. That is why here we will talk about this platform that you should undoubtedly know.
✨What is LoopRing? ✨
If you ever dreamed of having all the currencies on the same platform through a kind of meta search engine which brings together all the exchange houses, then you should know that this is already a reality. That's right, all thanks to LoopRing.
We can say that LoopRing is a platform which is responsible for grouping all the most important exchange or exchange houses in the market in one place. This means that the user can access different currencies from the platform that best suits them or is convenient for them.
The way this cryptocurrency works is by running a chain of blocks or Blockchain. This chain comes from the one used by Ethereum, although LoopRing does not work as a cryptocurrency or exchange house as such. Rather, it is a kind of comparator or meta search engine based on an open source protocol.
Although for now this platform is limited only to the ERC20 Token, we can find that they have a plan to solve this point. Basically, it is planned to create a system that integrates the LoopRing protocol to the exchange houses of the market so that they can participate in this platform.
- Lower prices: By integrating all cryptocurrencies and exchange houses in the same environment, it is expected that their costs will be lower. Think of platforms like flight and hotel search engines, it's basically a similar principle.
- Easier integration: Thanks to the creation of a special protocol which was designed under Blockchain technology, integration is much easier. In this way, Exchanges will be able to more effectively integrate the Loopchain protocol to their exchange houses.
- Increase in liquidity: Another great advantage of using LoopRing is that it will allow you to increase market liquidity quickly.. This is because the protocol will allow access to the order books of the rest of the Exchange, which is necessary to open the offer of cryptocurrencies to the market.
- Quick shopping: Para muchos, The main advantage of LoopRing is that it will allow you to buy as many coins as you want, in different exchanges without having to make multiple transactions. You will only have to have your coins in a single Wallet and that's it, so you can operate without the need to change coins from one Wallet to another.
✨Differences between LoopRing and Bitcoin✨
- Reduction of failures: Compared to Bitcoin, LoopRing incorporates a protocol which eliminates the so-called single point of failure. This means that a faulty section of Hardware or Software is prevented from causing a general crash in the system.
- Safety: By not having to leave the cryptocurrencies in the user's wallet, the transaction is guaranteed to be much more secure. You will not have to worry about your information being leaked between Exchange and third parties, since the entire transaction is managed in the same place or platform.
- New solutions: Another difference is that, compared to Bitcoin, which has a closed blockchain that receives almost no changes, LoopRing constantly incorporates new updates. In this way, it will be possible to create a decentralized platform which adapts to the new Exchange and the new virtual currencies.
- Facilitates mining: Finally, you should know that thanks to the environment created by LoopRing through its Blockchain and improvement of algorithms and protocols, this platform encourages mining. Thus, not only does it make it easier for you to exchange cryptocurrencies, but it also makes it easier to find them by mining.
To work, LoopRing is based on the Ethereum blockchain which is known for its speed, transaction capacity and robustness. Similarly, this platform executes the ERC20 token under its own protocol which serves as the basis for its own currency, LRC.
One of the most crucial parts of LoopRing is the ability to run smart contracts. These have the characteristic that they are self-executing which helps them to be carried out without the intervention of third parties. Thus, compatibility problems as well as security and privacy problems are solved.
Another fundamental part in the operation of LoopRing is found in its protocol of the same name, which operates under the ring algorithm. And it is that under this algorithm it is that users and miners are allowed to carry out multi-platform transactions, exchange houses or multi currencies.
In addition, you should know that the LRC Token serve in two ways, the first is that they are awarded as a reward to the miners. They are also used as a commission when carrying out transactions or operations. It is expected that in the future LoopRing as a cryptocurrency will have a much more commercial use.
Finally, you should know that it is possible to mine LRC coins thanks to the design of the Ring protocol and algorithm. The so-called Ring-Miners are in charge of finding the best prices for a transaction, acting as a kind of meta sought spider user which is responsible for helping the transaction to be made at the best price.
In return, Ring Miners receive a commission in the form of LoopRing, which is previously agreed upon and can be both fixed and shared. In general, this commission comes from the price margin that it gives you to find cryptocurrencies at a lower cost.
Financial analyst and economist with a master's degree in finance.