The Ethereum network experienced unprecedented expansion in 2020, led by the rise of DeFi. However, the increase in the number of users is pushing the network to its limits. Fortunately, second layer protocols, like Loopring, could change the face of Ethereum.
Ethereum and the second layer issue, in brief
The Ethereum network has won over many users and organizations thanks to its smart contracts system. However, the dramatic increase in the number of users is pushing network performance to its limits .
The latter is therefore no longer able to handle the constant flow of transactions, which creates an even longer queue and an explosion in fees .
Fortunately, solutions exist to overcome this problem. These are the so-called second layer solutions, which allow part of the processing to be deported outside the Ethereum blockchain . Obviously, these solutions still depend on Crypto Code to ensure data security and integrity.
Loopring, a decentralized exchange protocol unlike any other
Among these second layer solutions, we find the Loopring protocol .
Launched in June 2017, the Loopring project aims to put in place a protocol and a suite of tools to create decentralized second-layer exchange platforms .
Thus, where most of DEX, such qu’Uniswap or Balancer, make the choice of an architecture in AMM , the Loopring project, meanwhile, chose a more classic architecture with order book ( order book ) .