Loopring, an Ethereum-based protocol that offers cutting-edge cryptography for Decentralized Finance (DeFi) applications, has been garnering increased attention from investors over the past few hours amid persistent rumors of its integration with GameStop’s (GME) NFT platform.
As a refresher, Loopring is essentially a Layer 2 Ethereum blockchain that utilizes a new type of cryptography, dubbed the zkRollup (zero-knowledge rollups). Instead of settling transactions on the main Ethereum blockchain, zkRollup allows key calculations to be performed elsewhere without requiring confirmation from the Ethereum network. This process allows the establishment of decentralized exchanges without the associated high fees and slow transaction processing speed. A zero-knowledge proof makes a claim regarding the accuracy of a particular data set without actually sharing that data. For instance, it may allow age verification for certain sites without actually revealing the age of the user. zkRollups bundle hundreds of transactions into a single one, thereby boosting the scale and efficiency of the network. These bundled transactions are then settled on the blockchain using zero-knowledge proofs to ensure the accuracy of those off-chain transactions.
So, how does a Loopring exchange work in real-life? Well, users first send their funds to a smart contract managed by the Loopring protocol. From there, user-identifying information is moved off-chain, and the associated trades are batched together and matched for efficiency gains. Each batch of transactions is then added to the Ethereum blockchain using zero-knowledge proofs that allow for a complete reconstruction of those off-chain transactions. Loopring claims that it can process over 2,000 trades per second by using this method. Loopring’s native cryptocurrency, the LRC, is used by decentralized exchange operators to provide the mandatory “lock-up capital”. The locked-up LRC can be confiscated in case the operator violates certain terms and conditions. Users who stake LRC win the right to 70 percent of the exchange fees, while 10 percent of these fees – paid in the form of LRC – are burnt, thereby ensuring an overall deflationary environment. The total supply of LRC is capped at 1.395 million tokens.
A Partnership Between Loopring and GameStop?
This brings us to the crux of the matter. Source code from Loopring’s GitHub profile suggests that the protocol’s developers are preparing to integrate with GameStop’s much-hyped NFT platform. As noted by GMEdd, the code makes certain interesting references:
“The amended code in the branch “NFT-DEV”, under the GitHub commit titled ‘NFT feature‘, makes reference to “gameStopMeta” and an IPFS URL.”
Bear in mind that the IPFS is a distributed system for storing and accessing files and data and was used by GameStop during its first iteration of an NFT platform reveal.
We’ve continued to note that, in the approaching era of cloud-based gaming, GameStop needs to think out of the box to strike gold, as its brick-and-mortar stores are already facing extinction. In the prevailing paradigm, the company’s recent push into the arena of Non-Fungible Tokens (NFTs) is a solid initiative,, and Loopring’s alleged involvement is only adding more confidence. To wit, GameStop has activated a dedicated website for NFTs that references players, creators, and collectors, thereby indicating an incoming ecosystem to cater to the gaming community. As NFTs are now being used to develop and monetize video games, GameStop’s interest in this field is logical.
While it still remains to be seen whether the much-vaunted partnership between Loopring and GameStop materializes, investors are already jumping on the bandwagon. To wit, the LRC has now recorded gains of over 50 percent in just the past 24 hours, with the coin currently trading around the $1.07 price level.
Nonetheless, Loopring’s current price is still far below the all-time high of $2.59 recorded back in January 2018.
Most focused cryptos among retail
(live estimates past 12h)#1 $LRC
#2 $ETH
#3 $DOT
#4 $BTC
#5 $ADA
#6 $BTCI
#7 $JASMY
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#9 $ANKR
#10 $SHIB
#11 #CATGIRL
#12 $MANAFollow retail flows https://t.co/ZAlldqTXHr
— Breakout Point (@BreakoutPoint) November 2, 2021
Given the budding interest around Loopring, we would not be surprised if the coin were to take out its current all-time high should the partnership with GameStop materialize.
Do you think a partnership between GameStop and Loopring is just around the corner? Let us know your thoughts in the comments section below.
The post Loopring (LRC) Is Poised To Take Out Its Current All-time High Should the Project’s Rumored Partnership With GameStop’s (GME) NFT Platform Materialize by Rohail Saleem appeared first on Wccftech.
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