#### What is Loopring? Loopring (LRC) is an [Ethereum](https://www.coinbase.com/learn/crypto-basics/what-is-ethereum)-based [cryptocurrency](https://www.coinbase.com/learn/crypto-basics/what-is-cryptocurrency) token that serves as the foundation for an open [protocol](https://www.coinbase.com/learn/crypto-basics/what-is-a-protocol) designed to facilitate the creation of decentralized crypto exchanges. The protocol aims to blend the advantages of centralized and decentralized exchanges by combining centralized order matching with decentralized on-[blockchain](https://www.coinbase.com/learn/crypto-basics/what-is-a-blockchain) order settlement. This hybrid approach seeks to address the common downsides of both types of exchanges. LRC [tokens](https://www.coinbase.com/learn/crypto-basics/what-is-a-token) were first made available to the public in August 2017, and the Loopring protocol was deployed on the Ethereum mainnet in December 2019. #### How does Loopring work? Loopring operates by managing orders in a centralized manner but settling trades on the blockchain. It can combine up to 16 orders into circular trades, rather than strictly allowing one-to-one trading pairs. This approach is intended to enhance the efficiency of order execution and improve the [liquidity](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/liquidity-) of decentralized exchanges. The issuance of LRC tokens is governed by [smart contracts](https://www.coinbase.com/learn/crypto-basics/what-is-a-smart-contract) that make up the Loopring Protocol. Nodes on the Loopring network are rewarded in LRC tokens for combining individual orders into order rings, maintaining public order books and trade history, and in some cases, broadcasting orders to other relays. #### What are the potential use cases for Loopring? Loopring's primary use case is to provide a platform for the development of decentralized crypto exchanges. By combining elements of centralized and decentralized exchanges, Loopring aims to offer a protocol that eliminates the inefficiencies of both types of exchanges. This includes addressing the custodial nature of centralized exchanges, which puts users' funds at risk, and the lack of transparency that allows for potential price manipulation. Loopring also seeks to address the inefficiencies of decentralized exchanges, such as lower efficiency due to the limited capabilities of underlying blockchains and fragmented liquidity. #### What is the history of Loopring? Loopring was founded by Daniel Wang, a software engineer and entrepreneur based in Shanghai, China. Wang has held multiple managerial and executive positions in major tech companies, including Google and JD.com, and has co-founded several companies. The Loopring protocol was first deployed on the Ethereum mainnet in December 2019, following the [initial coin offering](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/altcoins-and-icos) (ICO) of LRC tokens in August 2017. The protocol has since been operable on Ethereum and Neo blockchains, with plans to add support for the Qtum blockchain.