Did you just think that blockchain was only for financial transactions? Well, think again because the foundation stones of a technology called Loom Network has already been laid. The best part about this network is that it (ironically and surprisingly enough) aims at scaling the very Ethereum that it is based on.
Interesting enough, right?
Let’s delve into it by answering the most basic question.
What in the world is Loom Network?
Yes, we agree that blockchain based techs such as Ethereum show promise for totally renovating the technology landscape as we know it. However, with all their applications, there are certain problems for them when it comes to scaling.
For example, Ethereum saw congestion last year because of the influx of a large number of users to enjoy the perks of CryptoKitties. This was because the platform was easily accessed and used even by those who valued cuddly cute things and didn’t want to delve into the technology of it.
There has been a solution to this problem though – in the form of the sidechains, and in this realm, the first one to bang open the doors is the Loom Network.
You can view it as a conundrum of sidechains of social apps and large-scale online games that each operate with their own decision-making mechanisms based on DPoS (Delegated Proof of Stake). Thus, if we magnify the purpose and the makeup of the Loom Network, it is a network of DAppChains that is solely built for games and social apps, generated by the Loom SDK, and backed by Plasma’s immutable security, which, in turn, lets the use of ERC20 and ERC721 on the apps.
Oh, we presume we did mention that it runs on Ethereum at its base, no?
The LOOM Token
Built on the standards of the ERC20, the LOOM Token is slightly different from the rest of the tokens so far. It is a one-time-buy and many-times-use token (I hope this makes sense). It’s kind of a master key that opens all the access doors to all the DApps running on the Loom Network (how cool is that?).
But talking about its main purpose, it is designed to allow you transfer all of your digital assets back and forth from one DAppChain to another and to the Ethereum. To do that, you’d only need as many as 1 token to have the transfer process going on. I mean this is some real ease, no?
LOOM token use case
The Loom Tokens are already in use in the first DApp on the Loom Network – the DelegateCall.com. Although the platform has its own tokens – the DelegateCall tokens – you’d have to use Loom Tokens to transfer your karma points from the platform to Ethereum in case you want to sell them for ETH.
The promise and the potential
Well that was all about the LOOM Token, now let’s see why the Loom Network has a potential to disrupt the web of large-scale online games and of social networks (let’s call it Twitter of blockchain, please?).
1. Its decentralized for the love of blockchain
My foremost answer to the self-asked question is that unlike other DAppChains centralized by the DPoS, the chains allow the networks that are completely secured by the Plasma Cash; and therefore, it is as such decentralized.
2. It allows greater scalability
The Ethereum-savvy developers can finally take a sigh of relief as the Loom Network promises greater scalability because it allows the DAppChains to use their own alternative decision-making rule sets. This means a total liberation and separate smart contracts.
3. It has an added security layer
Scalability yearns for added security. Since the network is just an EOS layer on the top of Ethereum, it has the security of the likes of Plasma; thus, allowing a hassle-free transfer of asset, no matter how large the chain gets.
Owing to the potential and the promise of the Loom Network, it is evident that it will take only a few years to be in the spotlight, inviting and attracting every developer, every investor, and every enthusiast (a warning alarm for the centralized and insecure online games and social apps). In fact, it has already turned heads on its initial release.
Talking about that, some of the apps that are in the process of development are:
- CryptoZombies – A school for the novice coders to teach them creating games on the blockchain. It is being transferred to the DAppChain architecture.
- Etherboy – A better blockchain equivalent of the Mario.
- CryptoZombies Battlegrounds – An anticipated peer vs. peer game.
- CyptoZombies Rancher – A Pokémon equivalent on the blockchain.
All of these games would utilize the Loom SDK, which is kind of a playground for the developers.
Every day, new technologies based on blockchain are beginning to cause a major worry for the centralized techs that think they are the Gods of the internet. In that sense, although slightly new, the Loom Network is surely bound to lock horns with the online game and social network regimes. By keeping the features of the network in mind, we can see who will win. I am personally eager to see how it creates new democracies in the form of sidechains (like I’m literally perched on the tree of technology with my binoculars and popcorn).