Loopring team announced on Jun 6 that zkRollup powered Loopring Pay system has gone online. The functionality was previously limited to trading, but has since been expanded to include payments and transfers. Using the Loopring Pay facility, users can send and receive Ethereum (ETH) or Ethereum based assets, instantly and for free. The Loopring.io Web front-end, protocol and relayer have been updated to reflect the change. The layer 2 scaling solution has the same network security guarantee as the parent chain of Ethereum.
The UI and UX of Loopring Pay will be further improved and it will be properly integrated with upcoming Loopring wallet. Soon, other wallets and DApps will be able to harness the power of this fast, secure and scalable payment system.
The layer 2 scaling solution for the Ethereum network, actually started as a decentralized exchange (DEX). The team developed zkRollup which was used to power Loopring exchange. The zkRollup scales Ethereum 1000x over its nominal capacity by transferring most processing on another chain, which means higher settlement speed and low cost of transactions.
Since all transfers and transactions occur first on the Loopring zkRollup, before finally being settled on chain. The users must be on the Loopring network, to benefit from it. The onboarding process is quite simple and users need to make only one on-chain transaction to bind the held Ethereum mainnet address in the off-chain account system. As the Loopring network grows, the benefits will grow also. Other wallets will get the Loopring Pay functionality soon and users will be able to onboard from the wallet interface itself.
About Layer 2 Protocols
The Layer 2 scaling solutions are decentralized protocols applied to increase the processing capacity of a blockchain (hence scaling) and as a result relieve congestion on the network. They work by delegating the network processing “off-chain” to their own chain, processing it there, before settling the final balances on the base layer mainnet.