Loopring is a decentralized trading protocol and an “automated execution system” built on Ethereum, allowing users to trade assets through exchanges. It is not a decentralized exchange organization, but promotes decentralized exchange through ring sharing and order matching.
Currently, it is important to understand that the Loopring will aggregate all orders sent to its network and fill these orders through multiple exchange orders. Decentralized and centralized exchanges will be able to implement Loopring, enabling exchanges to obtain cross-blockchain and cross-exchange liquidity and allowing investors to obtain the best price on the broader market. In addition, Loopring is a blockchain agnostic, which means that any platform that uses smart contracts (eg, NEO, Ethereum, Qtum) can integrate with Loopring.
With Loopring, traders do not need to deposit funds into the exchange to start trading. Even with decentralized exchanges such as Ether Delta, IDex or Bitshares, you must deposit funds into the platform through the Ethereum smart contract. But with Loopring, funds are always left in the user’s wallet and never locked by orders, which allows you to have full control of your funds while trading, so that you can cancel, adjust or increase orders before executing orders. After placing an order, you can even completely transfer funds from your wallet, but this will affect your final order, because the agreed ringers receive a reminder of the wallet balance before matching the order.