What is LOOPRING and Why is GAMESTOP Building a NFT Marketplace on it?

GameStop is very likely building an NFT Marketplace on Loopring, but what made them choose Loopring? What is Loopring and how does it work? What is this ZK-Rollups we've been hearing all about? In this video, I'll be diving into evidence of why GameStop tapped Loopring for their upcoming NFT Marketplace, the background on Loopring, how it works (Layer 2, ZK-Rollups, Merkle Trees, and Zero Knowledge Proofs), the MAJOR Q4 Loopring Product, and my very own PRICE PREDICTION!

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FULL BREAKDOWN:
1. There has been rumors that GameStop is going to create an NFT Marketplace based on job postings. Through fancy detective work, it looks like that marketplace might be built on Loopring as seen in github code commits because it's opensource.

2. But what is Loopring? Well, Loopring is a Layer 2 solution that started off with Ethereum to make it easier for people to create a Layer 2 Decentralized Exchange. They provide the tools for others to create a DEX on their platform. It was founded by Daniel Wang who has an incredible pedigree as a software engineer and has even worked at Google as a Tech Lead. From the beginning, Loopring has made consistent progress and improvements to efficiencies and features. They had their ICO in 2017, and raised $45 Million of ETH, but unfortunately had to give a lot of it back due to Chinese regulations. After that, they had their mainnet come out in December 2019 and provided the first exchange to offer zk-rollups. Then in December 2020, they released their exchange V2 that was based on 3.6 version, along with their smart wallet. And most recently in Q3, they released support for NFTs.

3. How does Loopring work? They leverage ZK-Rollups to create a Layer 2 side chain to Ethereum. This works through two main components: Merkle Trees and Zero Knowledge Proofs. Merkle Trees work by structuring the data in a binary tree, hashing recursively up the tree, until you get to the root. From there the data has been rolled up and compressed. Now Zero Knowledge Proofs are used to hide the content because it's been hashed in the rollup, and it's used to provide proof securely and efficiently without revealing addresses or transactions.

4. But why NFTs on Layer 2? Because GameStop is smart. They have seen the insane gas fees on platforms like OpenSea, and they know if they release NFTs on Layer 2 and reduce the barrier of cost for NFTs to the retail investor, they'll have more customers coming to their platform. However, as of now, Loopring's Smart Wallet still has to be connected to Layer 1 (Ethereum), and that gas cost is in ETH which can run up to about $350. Because of that, Loopring is releasing the "Counterfactual Wallet" in Q4 of this year! This will provide a temporary solution until Eth 2.0 comes out, and provides support for NFT minting and trading without needing to connect to Layer 1 and paying the ETH fees. The fact that Loopring is trying to get this new wallet out in Q4 along with mentioning a "premium owner" for a marketplace, alludes to it most likely will be GameStop.

5. What price will Loopring get to? $12, compared to Polygon Network's (Matic) Peak.


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Timestamps:
0:00 Introduction
1:30 What is Loopring?
3:44 How does Loopring Work?
4:31 Merkle Trees
5:47 Zero Knowledge Proofs
9:08 Why NFTs on Layer 2?
10:13 There's a catch?
10:35 HUGE Loopring Product in Q4!
11:50 Price Prediction