Could Loopring and Chainlink Help Revolutionize Ethereum 2.0 and How?
Last week Vitalik Buterin surprised many when he confirmed that Ethereum 2.0 could manage 160,000 transactions per second (TPS). This massive amount of transactions per second would be possible via the use of Loopring's ZKtech and Chainlink.
Loopring, Chainlink & Ethereum 2.0
While a DEX protocol and a decentralized oracle seem like an odd couple at first glance, the partnership makes more sense under further scrutiny.
Chainlink and Loopring have announced their collaboration towards the end of December 2019. Their partnership includes multiple oracle integrations in Loopring's V3 zkRollup DEX protocol. The first of which is an LRC/ETH price feed for DEX owners for LRC economic security stalking. Loopring will also make use of Chainlink's price feeds to support advanced order types such as stop limits for DEX's. Additionally, Loopring based DEX's will be perfectly verifiable on Ethereum's network via their layer 2 zkRollup.
zkRollups are a way to deal with scaling. Using zkRollups, transactions can be bunched together as a group instead of being handled case-by-case. Exchanges and DEX's could greatly benefit from this in the future.
Recently Chainlink's Rory and Loopring's Brecht Davos had a live YouTube Q&A. In the Q&A scalability and reduction of the Ethereum gas mechanism was widely discussed.
One of the more interesting questions was: "Where will Chainlink & Loopring's collaboration head in 6 months and how dependent is Ethereum 2.0 mean for this?" Brecht Davos responded with Loopring's plans for a "smart wallet" which will make use of Chainlink's price reference data. Another key question was "Is staking expected to further increase the usability of this integration?" To this Davos replied there is usability and there is security. Security, the network is already secure. For usability this will be able to set up networks more easily and will improve trust.
It appears that Zero Knowledge proofs increase scalability and could greatly improve the layer 1 of blockchains. This essentially can not only greatly contribute to Ethereum 2.0 but can help revolutionize the blockchains of the future.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado