Crypto Spotlight: LRC
We recently introduced Loopring (LRC) to the Wirex app. But what is it? Let’s have a look at LRC.
What is LRC?
LRC is the Ethereum-based token of Loopring, an open protocol designed for creating decentralised crypto exchanges. Its main purpose is to solve the problems associated with centralised crypto exchanges - crypto itself may be decentralised by nature, but the exchanges we buy it on tend to be centralised.
Decentralising exchanges reduces the risk of fraud due to higher levels of transparency, plus greatly reduces transaction fees. Loopring is not a decentralised exchange as such, but a decentralised exchange protocol - it implements users’ trades of ERC-20 tokens across the world’s crypto exchanges, reducing the risk involved and lowering the costs, too.
Who created LRC?
The Looping Foundation was created by Chinese software engineer and entrepreneur, Daniel Wang, in 2017.
Wang previously worked as a senior engineer at Google, as well as other large internet companies such as JD.com. In 2014, he founded a startup that offered a centralised crypto exchange service.
What makes LRC unique?
The Loopring protocol combines elements of both centralised and decentralised exchanges to create a hybridised product which takes the best bits of both. The protocol’s native token, LRC, sits at the heart of the Loopring ecosystem - LRC stakers both govern the protocol and earn rewards.