Competitive Comparison: Which is Stronger, Exchange Union (XUC) or Loopring Protocol (LRC)?

At present, the application of blockchain technology is developing rapidly, and the competition for market and users among blockchain products with similar concepts is particularly fierce. Let’s analyze the differences between the two decentralized projects, XUC and LRC, which are both aimed at improving the liquidity of the digital currency trading market.

First, the similarities. Both projects seek to solve the industry pain point of inefficient liquidity in cross-exchange transactions.

As we all know, due to various reasons such as geography, exchange rate, investment environment, etc., digital asset exchanges in various regions have become localized, resulting in price differences and incomplete currencies; even in exchanges in the same region, there are price differences due to different transaction depths caused by trading volumes. This problem has been around for a long time, and there is fierce competition and strict barriers between exchanges. Therefore, some ordinary investors who want to diversify their investments in multiple currencies need to frequently perform cross-exchange operations, which is not only time-consuming and laborious, but also causes unnecessary losses due to untimely operations when currency prices fluctuate.

Both the Exchange Alliance and Loopring Protocol aim to solve the above pain points, and the design logic of the two projects is roughly similar: establish a powerful order book network, find the best price match in the order book network for each order in the exchanges that join the network, and automatically perform protocol settlement. From this point of view, both have real and powerful application scenarios.

Differences

1. The specific steps for product realization are different.

The Exchange Alliance is a decentralized exchange alliance network built with the three most cutting-edge technologies in the blockchain field: payment channels, atomic swaps, and self-developed decentralized order books, to connect and open up global digital asset exchanges. Through payment channels and atomic swap technologies, different digital assets within the alliance can achieve cross-exchange secure asset transactions and ensure security (no user has the opportunity to maliciously disrupt ongoing transactions). Through the "decentralized order book" technology, each exchange node spreads the order to the alliance, allowing buyers and sellers on the exchange to communicate efficiently, so that each transaction can achieve the best price match for both parties' assets.

The Loopring Protocol is a decentralized token trading matching protocol. Through this protocol, users can exchange the currencies they don’t want for the currencies they want, such as exchanging their ETC for EOS of equal value. After the user sets the transaction conditions, if there are other users with matching exchange intentions, the protocol will automatically match them.

In general, the exchange alliance has more advanced technology, and transactions are simpler and smarter, and it has unlimited potential in the entire digital currency trading market in the future.

2. Different levels of friendliness to exchanges

The exchange alliance aims to connect and open up exchanges. Each exchange will act as a node to jointly improve the transaction liquidity of the alliance network, and benefit from it, gaining a larger user base, higher transaction volume and income, and XUC rewards from the exchange alliance. The exchange alliance and each exchange have a win-win cooperation relationship.

Since the Loopring Protocol is a trading platform protocol, it can be regarded as a digital asset exchange in essence, so it is inevitable that there will be a certain degree of competition between it and ordinary exchanges. In addition, in the Loopring Protocol, an order can be broadcasted to multiple exchanges for competitive matching, which will also lead to fierce competition between exchanges.

3. The difficulties faced by both parties in project development are different

Although the Exchange Alliance project has obvious application advantages, it allows users to quickly purchase the digital currency they want at the best price, and achieve win-win results with the exchange. However, the project is not well-known, and the popularity of its token XUC is also somewhat different from that of mainstream currencies. However, judging from the fact that the project's technical team has recently attended blockchain conferences, the project party should have noticed this. I hope that the project will be able to gain a lot of popularity in the future, after all, the project is indeed of high quality. This is not only the project itself, but also the price trend of its token XUC, which proves the support and trust of the currency market for the Exchange Alliance project.

As can be seen from the chart, in the past few months when the overall cryptocurrency market was sluggish, although XUC failed to overcome the overall market environment and develop an independent trend, it showed a rare ability to withstand a bear market. At the same time, as soon as the market warmed up, XUC began to rebound rapidly and rose steadily. It can be seen that users who own XUC can indeed achieve good long-term investment.

The Loopring protocol is generally safer. Token transactions in orders do not require fund custody on exchanges. They are kept in the user's own blockchain address during the order placement, matching, and clearing and settlement process. The disadvantage is that it is difficult to implement technically, because the protocol needs to cover the mainnet of the currencies being traded, which means that more public chains need to be covered, and because it has exchange attributes, commercial popularization is also a problem. This also requires the marketing and operation team behind it to actively find solutions to steadily bring the project to the market.

In summary, I personally think that as two blockchain products with similar applications, XUC does have some advantages. Interested users can pay attention to it and learn more about it.

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