Have you heard of Loopring?

Loopring is a decentralized exchange protocol utilizing new ring matching technology. If you haven't heard of Loopring then you probably don't know what ring matching technology is.

This is because... They created it.

Without getting too technical, ring matching allows users to make multi-token transactions.

An example given from the team

"Investor A puts an order out to sell XRP tokens for USD. Investor B wants to buy XRP and is selling BAT. Investor C is buying BAT, and selling MIOTA, and so on and so forth until it gets back to Investor A in the desired currency."

The ring miners also promise the best prices for everyone participating in the trade.

Liquidity

The ring matching technology combined with order sharing is a vital solution to liquidity problems. Exchanges that have low volume could use the Loopring protocol to improve the liquidity on their exchange and fill orders quickly.

Risk Elimination and Security

When placing orders with the Loopring protocol, the tokens remain in your wallet until the actual execution of the trade when the order is filled. Since the platform is decentralized, there is no centralized point of failure that would leave users easily exposed to exploits or hacks.

Who will be using the protocol?

The founder of Loopring, Daniel Wang, responded to a question of mine. I asked him if he had talked with any exchanges about adopting the loopring protocol. Daniels reply was

"Yes, but our strategy is not to talk exchanges into adopting Loopring protocol. They don't have the incentives at all. We are targeting wallets and wallet apps, they have a solid user base but don't have a source of income. We want to help them to be the entrypoint of decentralized trading. As a matter of fact, I personally believe in the future, most value exchange will start right from a wallet, not exchanges, unless fiat money involved."

In case you missed it

"We want to help them to be the entrypoint of decentralized trading. As a matter of fact, I personally believe in the future, most value exchange will start right from a wallet..."

The Loopring team is going to change the way tokens are exchanged.

You can checkout the Loopring Github Here

You can follow Loopring on twitter Here and the founder Daniel Wang Here

You can checkout the Loopring Reddit Here

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Have a great day, and Steem on.