Comin’ up around the bend – Loopring Fundamental Analysis

Imagine you're a magician attending a magic competition. The challenge is to teleport a particular object from backstage to a designated spot on stage without anyone seeing how it's done.

Before the competition, you visit a reputable magic shop and purchase a special enchanted box. Everyone knows this box can perform illusions, but no one knows exactly how it works.

Backstage, you place your object inside the box along with a description of the teleportation destination. The box whirs and smokes, then spits out a shimmering token. This token doesn't reveal the object itself, but it holds the magic needed to convince the judges.

Onstage, you confidently present the shimmering token to the judges. They have a magical device that can analyze the token's properties. If the token is genuine, the judges will be amazed to see your object appear at the designated spot!

Loopring’s Zero Knowledge (ZK) SNARK's technology acts like the enchanted box. It takes your private information (crypto holdings) and the trade requirements (teleportation destination). It generates a mathematical proof (shimmering token) that convinces the exchange (judges) you have sufficient funds without revealing the exact amount (keeping your balance private). This allows you to participate in secure trades while maintaining your financial confidentiality.

Loopring is a Layer 2 scaling solution tailored for Ethereum. It emphasizes secure, rapid, and economical trading and payment functionalities. By harnessing zkRollup technology, it amplifies transaction throughput while upholding asset security through the Ethereum blockchain. Loopring is crafted to empower decentralized exchanges and payment systems, streamlining crypto transactions with efficiency and scalability.

On the surface, those with a 1000-foot-high view of Loopring may only see a decentralized exchange with a history of limited composability. However, Loopring surviving two bear markets and their recent pivot toward shaping the layer-3 narrative warrants a deep dive. To that end, this fundamental analysis will revisit ZK Snark technology, hypothesize the implications of Loopring’s recent quest to simplify the user experience (UX) through account abstraction and discuss the suitability of $LRC as a viable investment in a bull market that is likely just starting to heat up.

Subscribe to Premium to read the rest.