Loopring startup has announced the launch of a payment system for Ethereum Loopring Pay. The solution is based on the second-level Ethereum scaling Protocol Loopring v3.0 and zkRollup.
According to the company, Loopring Pay should become an analog of PayPal for the cryptocurrency industry. The system is based on Loopring v3.0 – the second-level scaling Protocol of Ethereum, using zkRollup. With Loopring Pay, users will be able to send ETH and ERC20 tokens without having to worry about Ethereum bandwidth issues and high fees.
“Our team chose zkRollup, or in particular zk-SNARK, because these cryptographic tools increase network throughput and reduce costs for users,” said Loopring chief operating officer Jay Zhou.
Loopring was founded in 2016 by Daniel Wang, a former tech Executive at Google. The company is registered in the British virgin Islands, but its team is primarily made up of Chinese developers based in Shanghai. Zhou notes that creating a unified payment system is a big opportunity for Loopring.
“I used to work at Paypal and see Loopring becoming the equivalent of PayPal for the cryptocurrency industry,” he said. “We are also going to release a new smart wallet called Hebao, which will give users the ability to create accounts using an email address. You will no longer need to remember private keys.”
Last December, Loopring launched a decentralized exchange and its own LRC token, similar in function to most exchange tokens. However, Loopring Pay will clearly not be the last solution of the second level of Ethereum that will help solve the network’s problems.
So, at the beginning of the month, Vitalik Buterin said that the development of second-level solutions for Ethereum is very successful. He also noted that a significant part of transactions in the Ethereum network are transactions not with ETH, but with tokens, and to reduce the load on the main network, transactions with tokens need to be transferred to sidechains. Tether has already announced the launch of the usdt stablecoin on the OMG Network sidechain.