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As of now, the average transaction fee on Ethereum is around $47, making the network very expensive for small transactions. To tackle this issue, Vitalik Buterin recently put forward a new Ethereum Improvement Proposal, EIP-4488.
However, considering it will take some time for the EIP proposal to be approved and be implemented, users are in search of more immediate solutions. Capitalizing on this gap, Loopring is educating users on how to use their layer 2 solution to make gas-free transactions on Ethereum.
Scaling Ethereum via Sidechains and Rollups
Since Ethereum can only process 15 transactions per second, it has to rely on sidechains and rollups to offload some of the tremendous traffic and partly ease network congestion. Sidechains or layer 2 solutions are complementary networks built atop Ethereum to increase its capacity.
Sidechains are blockchains that run in parallel to the Ethereum mainnet but operate independently, hence increasing its scalability. However, since they are separate from Ethereum, they face the challenge of securing their blockchains.
On the other hand, layer 2 networks, also known as rollups, borrow their security from Ethereum and perform transaction execution outside the main Ethereum chain, thus scaling the network. There are two types of rollups: Optimistic rollups, and Zero-Knowledge rollups (ZK rollups).
The difference between the two types of rollups is in the way they validate transactions. Optimistic rollups, like Arbitrum, assume that transactions are valid — an optimistic outlook. Meanwhile, ZK rollups try to validate transactions by submitting validity proof.
These networks have risen in popularity lately. Data shows that the total value locked (TVL) in layer 2 protocols, such as Loopring, are at all-time highs, implying users are valuing these projects and the solutions they offer to Ethereum’s congested network.
Gas-Free Transactions With Loopring
Loopring is a ZK rollup Ethereum layer 2 scaling solution that dramatically reduces gas fees by performing most operations off of the direct Ethereum blockchain. It also has a non-custodial Ethereum decentralized exchange (DEX), built atop the open-source Loopring protocol, which enables users to trade speedily and cheaply.
Loopring recently released a guide for users who wish to connect their Metamask wallet with Loopring L2 to trade gas-free. Users will have their layer 2 account activated as soon as they deposit some ETH into it.
Once the deposit is processed, Loopring will activate layer 2, enabling users to trade gas-free on Ethereum.
New to Loopring L2 + Ethereum?
Check out our new quick guides to help you become an L2 wizard in minutes🧙♂️✨
You’ll learn how to:
🌟 connect MetaMask to Loopring L2
🌟 deposit to Loopring L2
🌟 transfer L2 <> L2
🌟 withdraw back to Ethereum L1
— Loopring (@loopringorg) November 29, 2021
With more than 25 trading pairs, an intuitive trading interface, and access to trading tools for professional users, Loopring is arguably on the right track to gaining wider adoption.
Loopring’s Rumored Partnership With GameStop
In late October, a source code from Loopring’s public GitHub repository leaked online, suggesting the low-cost L2 solution might be on the brink of announcing a partnership with GameStop. The news was followed by a surge in GameStop stocks, as shares rallied by 5%.
While the news is still pure speculation, it is worth noting that neither GameStop nor Loopring has denied it. Just recently, GMEdd published an interview with Daniel Wang, founder and CEO of Loopring. When the CEO was asked about the rumored partnership, Wang reportedly said he “cannot comment on that.”
Meanwhile, some Reddit users have been busy compiling indications that attempt to prove the partnership is slated to happen. For one, Reddit user @Fedwardd has revealed what he calls a “technical proof” for the partnership. The user, who appears to be a developer, concluded:
“But as a professional dev I’d stake my career on this [the GameStop partnership with Loopring] not being fake, there’s just no way. Ask any experience developer and show them all the data points lined up in favor of the simplest explanation, and you’ll get a consensus.”
Notably, Byron Wiebe, Head of Community at Loopring, has recently asked the Loopring community to reach out to centralized exchanges and ask for direct support of Loopring L2 withdrawals. “It might not hurt to if some of you wanted to show them that there is demand for this by requesting whatever centralized exchange you use to support this,” Wiebe has allegedly said.