Is Loopring (LRC) Cheaper Than Polygon (MATIC) for Gas Fees?
Ethereum is the most widely used blockchain platform for decentralized applications. It is secured, decentralized, and has a thriving community. However, anyone who has recently tried to use the network will know that gas fees are extraordinarily expensive.
One of the ways to tackle the gas fee issue is by interacting with Ethereum via layer-2 scaling solutions, such as Loopring and Polygon. Both of these layer-2 blockchains make it easy to interact on the Ethereum blockchain, but for only a fraction of the cost.
But what is the cheapest option? Is it Loopring or Polygon?
Loopring vs Polygon Gas Fees Compared
At the time of writing, Loopring ($0.16) is cheaper than Polygon ($0.25) for gas fees. However, there is only a small difference in price, and this could change at any time.
Both offer a great option for those looking to interact with Ethereum without breaking the bank. However, Loopring is currently the slightly cheaper of the two.
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How Does Polygon Reduce Ethereum Fees?
Originally known as Matic, the Polygon network is most known for providing scaling solutions to the Ethereum blockchain. By interacting with Ethereum on a second chain, Polygon is able to reduce the transaction computation burden from the layer-1 chain.
This means users can interact with Ethereum, and other compatible blockchains, at a fraction of the cost. This is done without sacrificing security or decentralization.
However, Polygon isn’t as secure as the ZK proofs on Loopring. While Polygon has recently partnered with Hermez, a zkRollup solution, things are currently running on commit based side-chains.
Polygon is more of a broad dApp ecosystem that is useful for more than just reducing gas fees. In fact, Curve, Balancer, AAVE, and SushiSwap are are utilizing the Polygon network.
Polygon has many different scaling solutions that all focus on different things. As such, Polygon Hermez is the main competitor to Loopring as it targets the same goal of decreasing fees and optimizing decentralized payments.
The Polygon token (MATIC)
MATIC is the token used on the Polygon network. It is an ERC-20 token that can be stored in any Ethereum wallet.
The main purpose of MATIC is to power the Proof of Stake side chains. There is also staking, which rewards users for locking up their MATIC tokens. This helps to secure the network and ensures that users have a vested interest in its success.
There are rumors that MATIC will soon provide governance and voting rights for the Polygon network. This will allow users to have a say in the future of the network, which is an important aspect of Web3 and the decentralized future.
The current price of MATIC is $1.55. The 52 week low is $0.03194 and the 52 week high is $2.92. As you can see, the value of MATIC has seen a lot of growth in the past year.
How Does Loopring Reduce Ethereum Fees?
Loopring is a layer-2 solution that uses ZK proofs to limit the amount of resources needed to validate each transaction. This results in 2000 TPS throughputs, which is significantly higher than on other blockchains.
The great thing about using Loopring is that it inherits the security of the Ethereum blockchain. You aren’t taking any risks to save money, which is best avoided in the volatile and unregulated cryptocurrency market.
We mentioned above that Polygon is more of a layer-2 solution, rather than a platform it its own right like Polygon. However, Loopring is currently developing a zkEVM, which would mean dApps can be onboarded to the network without having to sacrifice security or speed.
As Loopring offers the more complete product for those looking to reduce Ethereum fees, it is the better choice when compared to Polygon. The fees are also cheaper, so there’s no reason not to use it.
The Loopring token (LRC)
LRC is the token used on the Loopring network. It is an ERC-20 token that can be stored in any Ethereum wallet.
The main purpose of LRC is to act as a form of collateral and to pay for fees on the network. This is similar to how MATIC tokens are used on Polygon.
As Loopring technology is perfect for building decentralized exchanges (DEX), we can see a future where the LRC token will be used to provide trade fee benefits to holders, just like how holding BNB reduces trade fees on Binance.
LRC has seen significant growth in value over the past year, with a current price of $1.02 per token from a low of $0.17.
How Do Layer-2 Scaling Solutions Work?
With the introduction of layer-2 technology, it is possible to reduce transaction computation from the primary chain. The technology details will vary depending on the type of layer-2, as there are ZK Rollups, Optimistic Rollups, Sidechains, and Plasma.
zkRollups are the most popular type of layer-two. These are blockchain solutions that use zero-knowledge proofs to limit the data needed to be verified on the main chain. This is done by verifying state transitions rather than entire blocks, which significantly reduces the burden on Ethereum nodes.
The industry continues to evolve as developers race to find new and innovative ways to scale blockchains. This is in response to the increasing demand for blockchain technology, which is only projected to grow in the future.
In conclusion, Loopring is the better choice when compared to Polygon for gas fees. The fees are cheap, transactions are fast, and security is never compromised as it uses the Ethereum blockchain.
We don’t want this to article to stop you from using Polygon as it’s still a great solution for reducing gas fees. In fact, Polygon provides a whole host of decentralized solutions. There’s a reason why so many dApps are currently utilizing the network.
However, if you’re looking for the best possible solution just for reducing fees, then Loopring is your go-to choice.
This is a new industry where technology advancements move fast. As such, don’t be surprised if the situation changes in the near future. It pays dividends to monitor the space and keep up with the latest innovations.