Epicenter brings you in-depth conversations about the technical, economic and social implications of cryptocurrencies and blockchain technologies. Every week, we interview business leaders, engineers academics and entrepreneurs, and bring you a diverse spectrum of opinions and points of view. Epicenter is hosted by Sebastien Couture, Brian Fabian Crain, Friederike Ernst, Meher Roy and Felix Lutsch. Since 2014, our episodes have been downloaded over 8 million times.
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episode 340: Daniel Wang: Loopring – A Scalable DEX Protocol Using ZK-Rollups
Decentralized exchanges have been around for some time, and various designs have been attempted. Although they provide a number of privacy and censorship resistance benefits, one of their pitfalls has been transaction throughput. However, recent advancements in Zero-Knowledge Proof-based scaling solutions is creating a new breed of scalable DEXes.
Loopring is a non-custodial DEX protocol that achieves high-throughput trading. It leverages ZK-Rollups to achieve upwards of 2,000 transactions per second with on-chain settlement. As an order book-based exchange, it sets itself apart from other DEXes like Uniswap and the Gnosis Protocol. However, users should keep in mind that the orderbook is centralized. Daniel Wang, Founder & CEO of Loopring, talks about why they decided to focus on DEXes and their plans beyond the current version 3.0.
Topics covered in this episode:
- Daniel's background and how he became involved in crypto
- Loopring's 2017 token sale and why they needed to return funds to investors
- The concept of ring matching in the Loopring protocol
- Loopring's use of ZK-Rollups
- The current throughput and transaction cost
- Looping vs Binance and centralized exchanges
- Why Loopring chose to build on a centralized order book model
- The differences between the Optimistic Rollup and the ZK-Rollup
- The Loopring token (LRC) and how it's used in the protocol
- Daniel’s views on the future of the DEX ecosystem
Episode links:
- Loopring website
- Loopring 3.0
- Loopring’s Frontend Vulnerability, Explained
- Loopring Exchange frontend password bug: Postmortem
- Loopring Twitter
- Daniel Wang Twitter
Sponsors:
- Learn how Zero-Knowledge Access Passes can help you build a more privacy-minded business by disconnecting payment and user data. Learn more at leastauthority.com/zkaps
This episode is hosted by Friederike Ernst & Sunny Aggarwal. Show notes and listening options: epicenter.tv/340