Ethereum&rsquo;s Loopring program where they are in charge of ensuring that each exchange is successfully completed.&nbsp;</p>\n<p>Before we dive into the term, let&rsquo;s define what Loopring entails. In essence, Loopring is an exchange and payment layer based on a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-consensus-mechanism/">consensus mechanism</strong></a> that runs on Ethereum. However, Loopring does not involve traditional order books or the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-automated-market-maker-amm/">automated market maker (AMM)</strong></a> mechanisms that generally control liquidity pools. Furthermore, Loopring is different from other <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-decentralized-exchange-dex/">decentralized exchanges (DEXs)</strong></strong></a> because it offers ring orders.</p>\n<p>In order for Loopring to function properly, participants that ensure orders are completed successfully are essential.&nbsp;</p>\n<p>This is where ring miners come in. They fill orders before they&rsquo;re canceled or completed. Loopring recruits ring miners from the network participant pool. Generally, they receive compensation (service fee) in Loopring&rsquo;s native tokens (LRC).&nbsp;</p>\n<p>Why do ring miners do this? Ring miners carry out this role and fill orders to receive specific rewards. They can choose between two different reward types:</p>\n<ul>\n<li>Service fee in the form of Loopring (LRC) native tokens. The maximum number of these tokens that a ring miner can receive depends on the user who makes an order and is then able to specify the exact number of native tokens to be received;</li>\n<li><strong>Split margins</strong>. Similarly, the user who has made an order can specify how much of the margin can be claimed for it.</li>\n</ul>\n<p>These rewards act as an incentive for the service the ring miners provide. This way ring miners themselves search for the most advantageous rate deals to get the best rewards. Moreover, this incentive system makes sure that its users also receive the best value for their exchanged digital assets. Therefore, it&rsquo;s quite favorable for Loopring.</p>\n<p>When a ring miner completes a ring order, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-smart-contract/">smart contracts</strong></a> execute it. In cases where a smart contract is able to fill the order on both sides of the transaction, it will send a direct transfer straight to the user&rsquo;s wallet.&nbsp;</p>\n<p>Ring-matching can be implemented with the use of ring orders. Ring-matching links multiple orders together thus securing multiple trades through multiple users.</p>\n<p>Have a look at an example to see ring miners in action. Let&rsquo;s say that there are three users who want to make an order on Loopring: Lucas, Simone, and Kit. Lucas wants to trade 4 HNT for 12 ADA, Simone wants 30 VET for 3 OMG while Kit wants a deal of 30 ADA for 60 VET. This is where ring miners come into play. They use a ring-matching system to merge all of these orders into one order ring. In this situation, the only order that is actually filled belongs to Lucas. What remains is handled by Loopring&rsquo;s order sharing. This means that the remainings are filtered into a different order ring until every incomplete order is joined with the complete order.</p>\n<p>Once the program&rsquo;s smart contracts confirm the ring order, every participant of said order will get whatever virtual asset they initially came for.</p>","level":"medium","meta_title":"What are Ring Miners? Definition & Meaning | Crypto Wiki","meta_description":"Ring Miners meaning: Ring Miners - manage order rings and confirm that each exchange is completed within Ethereum’s Loopring program.","meta_keywords":null,"language":"en","created_at":"2022-03-29T09:10:58.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-are-ring-miners"},"prevSection":{"id":682,"original_id":null,"author_id":41,"translator_id":null,"title":"Who is Roger Ver?","slug":"who-is-roger-ver","section":"R","keyword":"Roger Ver","status":"published","definition":"early Bitcoin investor and promoter, also known as Bitcoin Jesus.","content":"<p><strong>Roger Ver</strong> is an American-born Bitcoin investor and former CEO of Bitcoin.com who currently holds Saint Kitts and Nevis citizenship. Ver is known in crypto communities as &ldquo;Bitcoin Jesus&rdquo; and is an advocate for Bitcoin Cash (BCH).</p>\n<p>In 2002, Ver was <strong>imprisoned for 10 months for illegally selling fireworks</strong> on eBay. After his sentence, he moved to Japan, relinquished his US citizenship, and obtained a Saint Kitts and Nevis passport.</p>\n<p>Ver started investing in <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-bitcoin-btc/">Bitcoin (BTC)</strong></a> around 2011 &mdash; before the price of one coin exceeded $1. He has since been involved in several Bitcoin <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-hard-fork-blockchain/">hard forks</strong></a>, such as Bitcoin Cash and <strong>Bitcoin TX</strong>, due to their offerings of larger block sizes. In 2012, he became one of the founding members of the Bitcoin Foundation.</p>\n<p>One of the key beliefs held by Ver is that Bitcoin can rival some of the biggest <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-fiat/">fiat currencies</strong></a>. Until August 2019, he was the CEO of Bitcoin.com before moving on to the <strong>Executive Chairman position</strong>. He was later mistakenly identified as one of the co-founders of Bitcoin Cash by Fortune Magazine.</p>\n<p>Over the years, Ver has been involved in other bitcoin-based startup projects, such as <a href=https://www.bitdegree.org/"https://en.wikipedia.org/wiki/Ripple_(payment_protocol)/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Ripple</strong></a>, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-bitpay/">Bitpay, and <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/goon/kraken/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Kraken</strong></a>. He was ranked as one of <strong>Fortune's The Ledger 40 under 40</strong> in 2018 for his role in FinTech development. Ver is a strong proponent of economic freedom through the means of cryptocurrency.</p>","level":"easy","meta_title":"Who is Roger Ver? Definition & Meaning | Crypto Wiki","meta_description":"Roger Ver meaning: Roger Ver - early Bitcoin investor and promoter, also known as Bitcoin Jesus.","meta_keywords":null,"language":"en","created_at":"2022-03-29T06:12:34.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/who-is-roger-ver"},"currentChapter":"R","currentSection":"what-is-roth-ira","chapterTitle":"R","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-roth-ira","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Crypto Terms: Letter R

What is Roth IRA?

Roth IRA MEANING:
Roth IRA - an individual retirement account that helps grow tax-free investments.
Easy
1 minute

Let's find out Roth IRA meaning, definition in crypto, what is Roth IRA, and all other detailed facts.

A Roth IRA is a type of individual retirement account that can help turn investments into tax-free money. It shares some similarities with the traditional IRAs. The two individual retirement account types offer different taxing models.

Customers holding traditional individual retirement accounts can add pre-tax funds to grow tax-deferred funds. The funds can be accessed once the account holders retire at the income tax rate during the time of the contributions.

Roth IRA funding is done using after-tax dollars. This means that the contributions are not tax-deductible. However, when the account holders retire and wish to withdraw their funds, they can do so tax-free.

That essentially forms the core difference between the two account types – Roth IRAs aren’t taxable while a holder of a traditional IRA has to pay income tax every time they withdraw money. However, the latter receive a tax deduction for contributing to the account before retirement while Roth IRAs already use contributions after-tax.

It is recommended for people who expect their marginal taxes to be higher once they retire to opt for the Roth IRA plan. There are strict limits on the income margins on Roth IRAs. If the taxpayer is filing as a single person, their earnings must be $144,000 or below in 2022. Married couples that file their taxes jointly cannot exceed $214,000 in 2022.