What is Loom Network?
Recognizing that each dApp has unique requirements for consensus methods and security measures, the network allows developers to make and implement their own rules according to the defined objectives of their protocols.
This allows developers to build dApps that meet particular needs and use cases without feeling boxed in.
It offers high-speed development and transaction processes for blockchain-based applications with the conventional user experience (UX) that most traditional applications use.
In its early days, the network was focused on creating blockchain-based decentralized networks for social media and gaming. Projects like SocialChain and GameChain garnered significant attention during this phase.
However, it has since pivoted to more enterprise-driven applications and expanded its offerings to include platforms like PlasmaChain and DAppChain.
How Does Loom Network Work?
From the ground up, the Loom Network is optimized for scaling blockchain-based applications that require speedy transaction validation and a smooth user experience.
The platform relies on a framework inspired by the Plasma network, which encompasses:
Software Development Kit (SDK)
Like most SDK packages, Loom Network’s development kit is focused on providing real-time value for all dApp developers. The software kit simplifies application development on the blockchain network.
It also enables developers to build a diverse range of permissionless applications, all without the need for advanced knowledge of how to do so natively on the Ethereum blockchain.
Delegated Proof-of-Stake (DPoS)
Although Loom Network operates on top of the Ethereum ecosystem, it runs on a modified proof-of-stake (PoS) consensus algorithm called delegated proof-of-stake (DPoS). The standard PoS system rewards users who stake (lockup) their coins to validate transactions and secure the blockchain network. However, the DPoS is a bit different.
For one, there are 21+ delegated validators on the Loom Network, and the DPoS system focuses on voting and delegation systems.
Given this, users delegate their tokens to validators, who validate transactions on their behalf.
The delegated node or validator then serves as a representative for others and actively works for the good of the greater community.
With delegates democratically selected in advance to validate new blocks, Loom Network outpaces many other PoS networks in terms of speed.
This enables developers to construct applications with an impressive 1-second transaction finality instead of the 15 seconds applicable on the Ethereum network.
The LOOM Token
At the heart of Loom Network’s operations lies the LOOM token. The digital token enables developers to cover the costs of hosting their dApps on the blockchain protocol.
Besides this, the LOOM token is used for:
- Staking: To secure the network from malicious attacks, holders of LOOM can lock up their tokens. In return, the protocol rewards them with newly minted tokens when transactions are verified.
- Governance: Loom Network is fully decentralized, meaning the community determines its development journey. LOOM holders get to vote on network proposals.
- Delegating: Users can also democratically elect validators if they want to create new blocks on the network by staking their LOOM tokens. These delegated nodes are often tasked with putting the network’s interests before theirs.
History of Loom Network
Loom Network is the brainchild of three software developers – Matthew Campbell, James Martin Duffy, and Luke Zhang. Each co-founder holds different positions in the company, with Matthew Campbell serving as the CEO.
James Martin Duffy functions as the CMO of Loom Network, while Luke Zhang holds on to the co-founder title.
Below, we provide a snapshot of the Ethereum sidechain’s history from inception to fame.
|2017||Crypto Zombies was launched as a forerunner to the Loom Network. Crypto Zombies is an online coding school for educating developers on how to build Ethereum dApps.|
|2018||Loom Network came into production with its Basechain mainnet. The protocol’s core area was on social media and gaming apps.|
|2019||Loom Network announced plans to create a multichain called PlasmaChain, allowing users to build network-agnostic and interoperable apps on Bitcoin, Ethereum, EOS, Tron, and Cosmos protocols.|
What Makes Loom Network Unique?
Loom Network is a layer-2 scaling solution designed to address Ethereum’s scalability limitations, but its uniqueness goes far beyond mere transaction speed improvements.
Here are some key features of Loom Network:
- One of them is its provision of dApp development templates that empower builders to create and implement solutions meeting specific needs. Hence, builders can craft custom-made apps for e-learning, supply chain management, and digital asset trading with specific tweaks to each.
- In addition, the blockchain protocol also provides a similar UX to traditional applications, with all the benefits of a blockchain platform. This streamlines user onboarding, ensuring a smooth and uncomplicated experience for newcomers.
- Other crypto natives can easily interact with Loom-based dApps using their native crypto wallets thanks to its Universal Transaction Signing (UTS) mechanism.
- Finally, it is multichain and interoperable, allowing users to send and receive data from most major blockchain networks. This provides a more extensive crypto experience for all users.
Loom Network is a multichain interoperable blockchain protocol. The platform combines the ease of traditional UX experience with the transparency and permissionless blockchain systems offer.
With speed being a major challenge for developers to build on Ethereum, Loom Network is a tailor-made solution to address this scalability dilemma.
Meanwhile, the platform is also expanding its use case into healthcare and governance systems, making it a perfect platform for onboarding the world into blockchain.