Learning

As modern computing started to become a reality, and progress accelerated, our vocabulary about computation has increased and so has the complexity around it. Reasoning about computation problems is extremely important as the implications are very far reaching.

Elliptic Curve Cryptography (ECC) was introduced in 1985 and has been one of the biggest advances in the field since then. It took 25 years of trial and testing before it was used in production by OpenSSL.

Diffie-Hellman Key Exchange is used for various public key/private key encryption schemes. Security assumptions about the key exchange protocol are guaranteed through the difficulty of breaking the discrete log problem.

Loopring is creating a new “Learning Cryptography” series to educate the wider crypto community about this fascinating field. This series will begin from the basics, and work its way up to the advanced tools that make our scalable 3.0 DEX protocol — which utilizes zero-knowledge proofs — possible.

Ask someone what (il)liquidity is, and you’ll get familiar answers: the cost of trading an asset, the bid/ask spread, something that makes it difficult to buy/sell an asset — or enough of an asset — or finally, in crypto-land, something that punishes many currencies/tokens in the market.

Depending on what a trader is more sensitive to — price or time — a limit order or market order will be preferable, respectively.

When we think of buying goods or services, we think of the price — the dollar cost. Similarly, when we think of trading financial assets, we measure their value in dollars, attaching a price to every security.

This Loopring Learning Series is meant to act as a basic primer of economic concepts related to the protocol, but also to financial markets in general.