Loopring Adds ZK Proofs For Faster DEX Technology
The new version allows up to 450 trades per second.
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Loopring, a platform for commercial development of decentralized exchanges, has announced the release of its third generation protocol. Loopring 3.0 will combine blockchain tech with Zero Knowledge Proofs to dramatically increase throughput in developed networks, the company said in a press release.
According to the announcement, the new protocol aims to make DEX’s more competitive with centralized exchanges. To achieve this, Loopring deploys an open sourced, Ethereum-based code to circumvent some of the problems facing decentralized exchanges, such as low liquidity and high latency. The new protocol will also offer benefits such as non-custodial trading and improved privacy.
Loopring is confident that the third generation network can bring DEX’s to the commercial mainstream. Says Daniel Wang, CEO of Loopring:
“This launch marks, in some ways, a considerable departure from previous iterations of our platform, and is a radical evolutionary leap towards making this exciting technology a reality for cryptocurrency users and traders around the globe.”
The new implementation comes with a dramatic improvement in DEX scalability, offering 80 to 450 trades per second depending on the availability of off-chain data, Loopring said in the announcement. In contrast, previous version of the protocol could only process two trades per second.
“[T]here’s no doubting that decentralized exchanges represent the future of crypto trading,” Devos added, noting that DEXs can help solve “the multitudinous issues faced by users of centralized exchanges in their day-to-day transactions, such as the risk of hacks, personal data leaks, or blocked funds.”
DEX’s, while currently not as fast as centralized systems, can help resolve these problems. With a fully operational and scalable DEX, users can feel confident in their sovereignty over their finances and personal data.
Whether or not Loopring 3.0 can bring DEX’s up to par with competing centralized exchanges has yet to be seen. However, the degree to which it succeeds in doing so may be the degree to which decentralized exchanges find mass adoption.