Kriptomat and Loopring have a vision that cryptocurrencies and blockchain can make our lives much better on many levels. As a result, we are partnering up despite the fact that Kriptomat is a centralized exchange while Loopring is creating a protocol for decentralized exchanges. It may not look like a match made in heaven, but we strongly believe that there is plenty of room (and demand) for both types of services, especially in the era in which cryptocurrencies are still on the long and winding road towards mainstream adoption.
We at Kriptomat strongly believe that a rising tide lifts all boats, so we are always keen to collaborate with like-minded and forward-thinking organizations. To turn our vision into a reality, Kriptomat is currently preparing a Security Token Offering to take our operations to the next level and to provide the best service imaginable. Loopring is also on a great path to improve their service and the newly developed Protocol 3.0 is a step forward in that direction.
Introduction to our collaboration
We connected with the Loopring team a couple of months ago because Kriptomat was the first platform to offer a seamless way to buy the LRC tokens in direct pair with euro. Matthew Finestone, Director of Business Development at Loopring, joined us in our recent “Ask Me Anything” LIVE session and we had an awesome chat about the current state of cryptocurrencies.
We also discussed the collaboration between centralized and decentralized exchanges and how we can work together to provide a more mature ecosystem. We received a lot of positive comments about the live stream, so make sure you give it a watch if you missed it! Those of you who watched it will know that we announced a special giveaway during the live show.
Read more about the giveaway below!
Exclusive giveaway with Loopring
We are launching an LRC token giveaway to commemorate the beginning of a collaboration between Kriptomat and Loopring. They will be available to claim from the 23rd of April to the 23rd of May 2019*. This giveaway is also a celebration of the Loopring Protocol 3.0 which will drastically improve token trading on decentralized markets.
The winners will receive the LRC token, which is the native cryptocurrency of the Loopring platform. It is used as a gas to fuel the smart contracts and it is put in the Loopring smart contracts as a reward for order-ring makers.
*UPDATE (6 May 2019): Our giveaway campaign of the Loopring (LRC) tokens has been an overwhelming success, which is why we are closing the giveaway period ahead of schedule. The giveaway has been closed on the 6th of May instead of on 23rd of May. All participants have been notified via email. This is a necessary step in order to ensure that all existing participants still have a chance to receive a meaningful reward.
Reward number 3 (listed below) states that there are 2800 LRC tokens which will be distributed among all participants who have completed all of the tasks (excluding the task of referring friends). This means that the reward for each user gets smaller and smaller as new participants continue to pour into the giveaway.
As a result, we are adding a total of 2500 LRC tokens into the pot for all of the participants. The rewards are as follows:
- 5600 LRC tokens are distributed among the first 300 participants who completed all the tasks in the gleam campaign.
- 4100 LRC tokens are distributed among the 200 participants who collect the most points/extra points – referring friends.
- 2800 LRC tokens are distributed among all participants who completed all the tasks in the gleam campaign (2800 LRC divided by the number of participants equals the sum of received tokens).
- 2500 LRC tokens are additionally distributed among all participants who completed all the tasks in the gleam campaign. This reward is a thank you note for making this giveaway such a success.
- 2500 LRC tokens are additionally distributed among all participants who completed all the tasks in the gleam campaign because Kriptomat and Loopring have managed to gain 1000 new Twitter followers, respectively.
Instructions for participation in the giveaway
Don’t worry, it’s very simple! First, simply visit our giveaway page and read the description. Scroll down to the bottom of the page where you will have to enter your name, email, and date of birth (you must be at least 18 years old to participate). Then click the continue button. You will then see the following 8 tasks:
- Provide your Ethereum (ETH) wallet address.
- Follow @Kriptomat on Twitter.
- Follow @loopringorg on Twitter.
- Retweet our tweet about the announcement on Twitter.
- Join Kriptomat Telegram group.
- Join Loopring Telegram group.
Comment & Clap the blog post on Medium.This task has been replaced with a task where you have to visit our website.
- Download the Kriptomat mobile app.
Extra 9th task: After you complete the tasks above, you will unlock an extra task. You will be able to invite your friends, and you will receive extra points (or entries) for doing so. With these extra points, you will be eligible to receive more LRC tokens.
The more of these tasks you complete, the more tokens you will receive!
The basic difference between centralized and decentralized exchanges
So we mentioned that Kriptomat is a centralized exchange while Loopring is creating a protocol for decentralized exchanges. But what is the actual difference between these two types of services?
A centralized exchange like Kriptomat is generally used as a so-called fiat gateway into the world of cryptocurrencies. This means that people deposit their money from a bank account to the platform and then simply purchase any of the available cryptocurrencies. These services are critical as they help people get to know the technology and because they provide a great solution for buying, selling and storing crypto. Kriptomat also is easy to use and offers all of the traditional payment methods, including a direct credit card purchase of cryptocurrencies.
You can rewatch the “AMA LIVE Session” we had with Matthew from Loopring where we discussed the differences between centralized and decentralized services. Matt was a great guest with very interesting insights.
A decentralized exchange is a market that doesn’t rely on a third-party service to hold the customer’s funds. Instead, trades occur directly between users in a peer to peer manner through an automated process.
We strongly believe that centralized and decentralized exchanges will always co-exist because there are benefits and downsides to each of the two models. Decentralized exchanges are currently illiquid, which means that there are generally few participants and a low volume of activity. Loopring is working hard to solve this, and their Protocol 3.0 is the next step in this evolution.
Kriptomat is one of the best cryptocurrency platforms to buy, sell and store your favourite digital currencies. Designed for non-tech savvy people focused on introducing the benefits of cryptocurrencies to a wide audience.
Trust, security, and transparency are three of our core values, which is why we hold operating licenses issued by the Financial Intelligence Unit for providing services of exchanging a virtual currency against a fiat currency (License No. FVR000079) and providing a virtual currency wallet service (License No. FRK000060).
Founded in early 2018 and launched in the summer of the same year we serve thousands of customers across all EEA countries. Our users can choose to use the service in over 20 languages and they can buy, sell, store and use 30 cryptocurrencies (Bitcoin, Ethereum, Ripple, Eos, Litecoin, Tron, Bitcoin Cash, Dash, and others).
Kriptomat is a web platform and it is available as a mobile app for Android and iOS. Kriptomat is a self-funded company and it will have a security token offering in May of 2019.
Loopring is an open-source protocol that allows any person or project to build their own DEX. Our most recent release, Protocol 3.0, has two main benefits vs past versions: 1) higher throughput & lower costs, 2) immediate settlement signaling.
The design aims to do as much activity off-chain as possible; such as order placement, matching, and settlement, and only speak to the blockchain when absolutely necessary…while still remaining secure.
Loopring 3.0 achieves this by keeping data off-chain in Merkle trees, and using zero-knowledge proofs (ZKPs): are a cryptographic tool that allows someone to prove they’ve done some computation or know some secret — without actually revealing said computation or secret. zkSNARKS, the type we use, can assure that what was claimed to be true and executed, is true and executed. A DEX thus speaks to Ethereum much less frequently, and only needs to submit a small proof to Loopring smart contracts that certify all off-chain activity is correct.
The protocol is 100% non-custodial and fully secure for end users; there is no central ‘honeypot’ to hack, and even if DEX operators are malicious, they cannot steal users’ tokens. 3.0 achieves throughput of >450 trades/second, compared to prior versions at 2 trades/second.