Ethport: Loopring’s solution

Loopring reported on Wednesday April 21, via his Twitter account, about Ethport: the company’s solution to solve composability between L1 / L2 / CEX while greatly reducing L1 rates.

La imagen tiene un atributo ALT vacío; su nombre de archivo es Loopring.jpg
Image on Loopring’s Twitter post

“Ethport is the product built on a collection of possible designs in our zkRollup. Among the L2s, zkRollups are especially well suited to help resolve composability due to the use of validity tests (instant finality / quick withdrawals). These properties are key to the designs we use”, he said through the same social network.

General description

The company shared some details about what users will be able to do through the platform and its functionalities:

• Loopring zkRollup users can interact with L1 dapps directly from L2 inexpensively using the power of batch processing and zero-knowledge testing.

• Loopring now supports economical and capital efficient L2 / L2 cross transfers.

• Centralized Exchanges (CEX) can easily support withdrawals directly to Loopring’s zkRollup using standard L1 functionality while still reaping the cost savings of L2. It is also much easier for CEXs to allow users to deposit with a cheaper centralized exchange.

• Ethport will be available as part of the Loopring 3.7 release in May 2021.

Problem

Loopring explained that while transfers and exchanges are the things that people want to do most often, sometimes they also want to do more complex things that require them to interact with L1. However, according to the company, with current gasoline prices in Ethereum, this is expensive.

“CEX’s withdrawal costs are also high, and since each L2 has its own peculiarities, it is not always easy for CEXs to have native support. A standard L1 interface, which hides all the implementation details and, at the same time, demonstrates the cost savings of L2, would be a great advantage”, he added.

While ensuring that “even as more functions are migrated directly to L2 in the future, it will take a while before this is fully realized. Some (or even most) of the liquidity may remain in L1 for the time being until the more general L2s are more mature. We need something to help save (pun intended) this transitional period”.

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Solution

According to the company, working as much as possible on L2 is key to making things cheap enough so that people do not run out of price.

“Often times, it is possible to bundle many L1 transactions together so that the cost of L1 gas can be shared. L2 transactions are used to do most of the work and only a single L1 transaction is needed for all users together, which significantly reduces the cost of gas”, he commented.

In his view, zkRollups are especially well suited to help solve this problem because the L2 state immediately ends at L1 if the validity check is provided immediately. So, he added that this not only means that operations like withdrawals are quick and out of the box, but we can also immediately use L2 data to perform L1 transactions without having to worry that an invalid L2 state transition will need to be reversed.

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