EIDOO CARD INTEGRATES LOOPRING, THE LAYER 2 SOLUTION FOR FASTER, CHEAPER TRANSACTIONS GLOBALLY
September 25, 2020 by Savannah Lee
One of the best things about decentralized finance is that it overcomes the burdens of banking to which we’ve grown accustomed. With DeFi, transactions that used to take days to settle can now take minutes – or even seconds. That’s the beauty of blockchain: it replaces a great deal of middlemen, who typically slow down every transaction as it’s passed along, and is verified and approved.
The exciting growth and adoption of the Ethereum blockchain has brought us many new DeFi products and services like the Eidoo Card! Historically, the Ethereum network has been a faster and cheaper alternative for transferring value than traditional finance, but recently the network has experienced uncharacteristically high transaction fees due to network congestion.
This means there is a large backlog of transactions to process, which slows down the whole network. The faster you want your transaction processed, the higher the fee you must pay. This makes it hard to justify the smaller, more frequent kinds of payments, like those you can make with your Eidoo Card.
Layer up with Loopring
To ensure the Eidoo Card experience is smooth and enjoyable, a Layer 2 solution will be employed, saving time and costs for every transaction.
You may have already heard about Loopring, as it already works with pBTC, pLTC and a number of other exciting projects. Loopring is an open-source, audited, and non-custodial decentralized exchange. It hosts a unique approach compared to other Ethereum-based DEXs, implementing a technique called zkRollup, which is centred around scalability.
As a high-performance, non-custodial DEX, Loopring processes approx. 2,025 trades per second completely off-chain. The platform is cheaper and ~1000x faster than a “normal” DEX. It not only reduces gas consumption and brings overall settlement costs to only fractions of a cent, but thanks to the zkRollup mechanism, it means that the performance of underlying blockchains no longer affects the speed of trades. Orderbook transactions are later settled on-chain with so-called zkSNARK proofs.
The integration between the Loopring API and Eidoo Card’s backend infrastructure is nearly complete. This will create the first DeFi or crypto card that utilises a Layer 2 solution.
The majority of card-holders’ crypto-to-fiat transactions will be executed on this Loopring-powered Layer 2 solution. Because they are processed on this sidechain, rather than on the Ethereum mainnet, this will make your transactions “instant” and “free.” There is no need to wait for your transaction to be added to the official blockchain, and therefore there are no gas fees. And no matter which crypto you decide to convert into Euros or Pounds, the same Layer 2 benefits will still apply.
More details about this Layer 2 integration and technology will be revealed in the coming months. But for now you can be sure that Eidoo Card will give you the same speed and costs associated with traditional crypto cards, while staying truly DeFi – transparent, secure and non-custodial.