12-11-2021, 06:15 AM
My attempt at the simplest explanation of what Loopring (LRC) is and why people say
<!-- SC_OFF --><div class="md"><h1>Loopring starts with Ethereum’s massive size (and flaws)</h1> <p>We first need to understand that ethereum is the most used blockchain today by far. It boasts the most developers, most decentralised apps and most exchanges by far. </p> <p>Eth’s smart contracts enable the existence of DEXs (decentralised exchanges) which fill the role of banks so you and I can buy crypto using other crypto.</p> <p>SushiSwap and Uniswap (DEXs built on ethereum) alone have a 24-hour trading volume of $3.5 billion. That’s a lot of activity!</p> <p>Apps and DEXs on ethereum have basically recreated the traditional financial system we have now.</p> <h1>But like a highway in constant rush hour, ethereum isn’t made to handle transactions by millions of people around the world simultaneously.</h1> <p>Ethereum has a low TPS (transactions per second) of around 15 which makes it easy to get congested and traffic to build up.</p> <p>Eventually each transaction will go through, but there are downsides.</p> <p>And these are transaction fees, or gas.</p> <p>Transactions need A LOT of gas on ethereum, whether you’re doing something small like transferring from Wallet A to Wallet B, or something big like exchanging your family’s savings for tokens in Uniswap. </p> <p>Look how huge ethereum’s fees are right now compared to other blockchains (smaller is better):</p> <ul> <li>Eth: $4 (on the “low” side)</li> <li>Cardano: $0.27 (93% cheaper)</li> <li>Tezos: $0.10 (97.5% cheaper)</li> <li>Algorand: $0.002 (99.99% cheaper)</li> </ul> <p>And here's the speed difference in transactions per second (higher is better):</p> <ul> <li>Eth - 15 TPS</li> <li>Tezos - 40 TPS (166% faster)</li> <li>Cardano - 250 TPS (1,567% faster)</li> <li>Algorand - 1,100 TPS (7,233% faster)</li> </ul> <h1>Loopring builds a highspeed skyway above ethereum’s congested highways</h1> <p>And the name of this skyway is ‘zkRollup’.</p> <p>One of the things zkRollups do is group hundreds of transactions and process them together instead of individually - and on a separate layer of the blockchain called Layer 2. </p> <p>This new layer is capable of handling up to 2,000 transactions per second. </p> <p>This means gas fees are slashed because:</p> <ul> <li>Carpools (transaction bundles) are now available so there are less cars (transactions) causing traffic on the main highway (the Ethereum blockchain) </li> <li>There’s also a carpool lane open for further decongestion (Layer 2)</li> <li>Transaction speed on both layers is increased</li> </ul> <p>Less gas fees means developers can experiment and build apps and users can exchange tokens without spending a ton to further grow adoption. </p> <h1>TLDR:</h1> <p>Would you rather take the express skyway or commute through traffic congested highway every single day?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/toyume"> /u/toyume </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rd7xh9/my_attempt_at_the_simplest_explanation_of_what/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rd7xh9/my_attempt_at_the_simplest_explanation_of_what/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><h1>Loopring starts with Ethereum’s massive size (and flaws)</h1> <p>We first need to understand that ethereum is the most used blockchain today by far. It boasts the most developers, most decentralised apps and most exchanges by far. </p> <p>Eth’s smart contracts enable the existence of DEXs (decentralised exchanges) which fill the role of banks so you and I can buy crypto using other crypto.</p> <p>SushiSwap and Uniswap (DEXs built on ethereum) alone have a 24-hour trading volume of $3.5 billion. That’s a lot of activity!</p> <p>Apps and DEXs on ethereum have basically recreated the traditional financial system we have now.</p> <h1>But like a highway in constant rush hour, ethereum isn’t made to handle transactions by millions of people around the world simultaneously.</h1> <p>Ethereum has a low TPS (transactions per second) of around 15 which makes it easy to get congested and traffic to build up.</p> <p>Eventually each transaction will go through, but there are downsides.</p> <p>And these are transaction fees, or gas.</p> <p>Transactions need A LOT of gas on ethereum, whether you’re doing something small like transferring from Wallet A to Wallet B, or something big like exchanging your family’s savings for tokens in Uniswap. </p> <p>Look how huge ethereum’s fees are right now compared to other blockchains (smaller is better):</p> <ul> <li>Eth: $4 (on the “low” side)</li> <li>Cardano: $0.27 (93% cheaper)</li> <li>Tezos: $0.10 (97.5% cheaper)</li> <li>Algorand: $0.002 (99.99% cheaper)</li> </ul> <p>And here's the speed difference in transactions per second (higher is better):</p> <ul> <li>Eth - 15 TPS</li> <li>Tezos - 40 TPS (166% faster)</li> <li>Cardano - 250 TPS (1,567% faster)</li> <li>Algorand - 1,100 TPS (7,233% faster)</li> </ul> <h1>Loopring builds a highspeed skyway above ethereum’s congested highways</h1> <p>And the name of this skyway is ‘zkRollup’.</p> <p>One of the things zkRollups do is group hundreds of transactions and process them together instead of individually - and on a separate layer of the blockchain called Layer 2. </p> <p>This new layer is capable of handling up to 2,000 transactions per second. </p> <p>This means gas fees are slashed because:</p> <ul> <li>Carpools (transaction bundles) are now available so there are less cars (transactions) causing traffic on the main highway (the Ethereum blockchain) </li> <li>There’s also a carpool lane open for further decongestion (Layer 2)</li> <li>Transaction speed on both layers is increased</li> </ul> <p>Less gas fees means developers can experiment and build apps and users can exchange tokens without spending a ton to further grow adoption. </p> <h1>TLDR:</h1> <p>Would you rather take the express skyway or commute through traffic congested highway every single day?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/toyume"> /u/toyume </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rd7xh9/my_attempt_at_the_simplest_explanation_of_what/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rd7xh9/my_attempt_at_the_simplest_explanation_of_what/">[comments]</a></span>Kind Regards R