Written by Blockrev @ Dapp.Tech. Originally published on Dapp.tech 24th August 2018.
Q. What is the Loom Network?
A. The Loom Network is a “next-generation blockchain based platform” that utilizes highly scalable Delegated Proof of Stake (DPOS) sidechains built on the Ethereum blockchain.
The team behind Loom Network released a developer toolkit earlier in the year (March 2018) that make it possible to deploy scalable Dapps on the second-largest public blockchain network, Ethereum, and will allow for far greater scalability through Loom’s side-chains catering for the development of mainstream Dapps that don’t congest the network the moment they gain popularity, as we saw with CryptoKitties. Alternative scalability solutions for the Ethereum blockchain include Raiden Network and Plasma.
Loom call these sidechains DAppChains, but the Loom Network will also function as an actual blockchain with all the properties of a blockchain. The DAppChains on the Loom are full-featured blockchains that were built to run parallel with Ethereum smart contracts. DAppChains are essentially a more advanced version of Ethereum sidechains that have been optimized for their ability to scale data instead of financial transactions. Each DApp has its own DAppChain, allowing for forkable, public data, as with Bitcoin and Ethereum.
The Loom Network DAppChains are specifically designed for high volume transaction usage like social media Dapps and games. For example, Ethereum-based crypto collectibles and token-based karma/reputation social networks, with everything being based on blockchain properties being decentralized, trustless, forkable and secured by cryptography.
The Loom SDK enables developers to create their own DAppChain for their DApp to run on. Every element of the sidechain can be customized to the developers needs, including unique consensus mechanisms and rules by which the chain operates. The developer can then release the node software that is fully containable and will run on any of the major cloud platforms like Google Cloud, Digital Ocean and AWS, but can also utilize the InterPlanetary File System (IPFS) protocol. The Loom SDK gifts developers the ease of managing the blockchain while they can focus on creating the best damn DApp out there.
The LOOM Token
The LOOM token is an ERC20 utility token that offers end-users ‘membership’ to the network, like an all-access pass for the DApps that run on Loom. The token functions on all Loom DAppChains and is used to transfer digital assets and data between the Ethereum blockchain and Loom DAppChains.
The token acts as a software license key and is held in an Ethereum wallet. Anytime you try to transfer an asset from one of the Loom DAppChains to Ethereum or complete a transfer between DAppChains, the DApp will first check your LOOM token balance. As long as you have a minimum of 1 LOOM token, the asset transfer will continue. Otherwise, you will have to buy at least one token before completing the transfer.
Blockchain Benefits for Games & Social Apps
With Loom Network, it becomes possible to build a range of games and social apps that harness the unique benefits of blockchain technology. Tradeable items and eternal universes that will outlive developers are just the tip of the iceberg. Using blockchain token economics, developers can use Loom to build social media or gaming DApps that monetize via tradeable utility tokens without the need for advertising revenue.
For more information about the Loom Network please visit https://loomx.io/