For so many years, cryptocurrencies have been regarded as not being fast enough, and its transaction fees could easily rise whenever the blockchain gets clogged. There are a lot of crypto startups that attempt to build their own second-layer solution to solve these issues. Loopring is one of these startups.
Loopring has announced the launch of its project called Loopring Pay, the crypto version of PayPal. Loopring Pay is based on the second layer scaling solution ZK-Rollups that could help Ethereum users to skip paying all the expensive gas fees on the blockchain.
According to the announcement, Loopring Pay is reportedly able to transfer ETH and ERC-20 tokens with fees as low as $0.0006 US Dollar per trade. The promising demonstration of Loopring Pay has the potential to eventually help Ethereum blockchain become much faster and cheaper than ever before.
At the moment, Ethereum’s biggest utility is to support the transactions of the stablecoin USDT (Tether), which is hugely popular among cryptocurrency traders. That being said, USDT is also the biggest gas consumer that has clogged the Ethereum blockchain recently. Hypothetically, Loopring Pay would be able to help Ethereum blockchain to deal with the massive amount of USDT transfers, because you only need to pay for marginal gas fees if you transfer ERC-20 tokens using the Loopring Pay mechanism.
Source: Crypto-News-Flash
