The LOopring Protocol is one of the core layers to help scale Ethereum in the future. It has tremendous potential, and its developers will introduce some core changes in the near future. Loopring 3.6 will be something to look forward to, even for those who have yet to incorporate the technology.
Different Onboarding Process
Using Loopring in its current form requires creating a special “account” to access this layer-two scaling solution. It is not the most problematic aspect, but certainly something that can be improved upon in the future. Removing the need for this account to benefit from zkRollup, for example, is something the Loopring team is actively exploring as of right now. Making it easier to obtain layer-2 Ether tokens is crucial to have more service providers incorporate this technology
Moreover, changing this onboarding procedure will bring more regular Ethereum users to Loopring in the future. It is in everyone’s best interest if these scaling solutions gain more attention and usage. After all, no one likes paying high gas fees to move assets across the Ethereum network. With Loopring’s zkRollup technology, those fees become a distant memory.
Combining Different Transaction Types
Evolving the Loopring ecosystem will require addressing the different types of transactions. Including different types in one and the same block will be beneficial in different ways. It will help increase the block size to reduce overall costs and transaction times. For some types of transactions, this may only be a small change, but for the overall ecosystem, it will be a major upgrade.
More Overall Flexibility
One of the big changes coming to Loopring 3.6 is the increase in flexibility. More specifically, users can perform cross-account and inter-layer transactions as they see fit. In terms of making this technology more accessible and versatile, changes like these will play a crucial role moving forward. It will take some more internal testing and auditing before this concept is deemed fully ready, but things are progressing nicely.
It is evident that the DeFi segment needs some crucial improvements before it can be taken to the next level. Loopring will introduce one of the much-needed changes. The new version will include support for AMMs and orderbook-based trading on layer-2. As a result, it will become possible to settle between regular orders and AMM pools directly. A very exciting development, as it will address the high gas fees associated with using decentralized finance projects.
The big question is what this will mean for the industry itself. Supporting AMM trading is a big step, yet it is still up to projects and developers to integrate the technology. Determining how many service providers will move from Ethereum to Loopring is a guessing game. In theory, everyone should do so as soon as possible, but it may take some time before everyone is prepared to do so. Making DeFi more robust, cheaper, and faster is an option well worth exploring.
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