Loopring DEX is based on zkRollup technology, which can compete with centralized exchanges in terms of speed, cost, and experience while providing users with much higher security than centralized exchanges.
User asset security is the highest priority consideration in the design of the Loopring protocol. We deployed the first zkRollup protocol on Ethereum, which is currently the safest Ethereum Layer2 expansion solution. Users can access their assets under any circumstances.
Loopring does not custody any of the user’s assets, and we cannot run away or do evil. Loopring inherits the Ethereum mainnet's consistent security. Loopring Protocol uses zero-knowledge proof technology and does not rely on any external verification, consensus, or crypto-economic assumptions. Exchange operators can only operate BY the actions set by the agreement.
Centralized exchanges basically break out black swan incidents every once in a while, some are looted by hackers, and some are stolen by guards. Once a user unfortunately encounters a similar security incident, it usually means that the user's assets stored on the exchange are all zero.
Compared with centralized exchanges, Loopring provides users with a more solid security guarantee.
The Loopring protocol ensures that even if all servers are compromised, in the worst case you will only lose the ether in one or two hot wallets as a transaction fee (gas). Because Loopring Exchange cannot access your assets, it will not store any of your private keys.
In addition, even if users do not use the exchange built by the Loopring Protocol, they can still use the zero gas fee, the second-to-account, and the second-level quick transfer function. At the same time, Loopring supports a fast withdrawal function, which can be credited in as fast as 15 seconds.
Users can choose Loopring's Layer2 express channel. Loopring greatly reduces network (Gas) costs while improving the user's transfer experience.
Loopring solved the scalability problem without sacrificing Ethereum security. Our zkRollup throughput has increased by about 1000 times and can handle up to 2,025 transactions per second. Each transaction fee is only one percent of the main network, and transaction and transfer fees are only one cent. We expect our non-custodial trading platforms and payment applications to provide an experience comparable to that of centralized exchanges and gradually replace them. Loopring has solved the problem of incompatibility between scalability and security.