What is Loom Network – Everything You Need To Know

By Rishma Banerjee

If you are wondering about blockchain networks and the Loom Network to be specific, we might be able to help you out. It was founded by James Duffy and Matthew Campbell, in 2017.

What is the Loom Network?

The Loom Network is a blockchain platform for games and social apps. It harnesses the power of decentralized app chains (dAppChains) and is multi-faceted blockchains that work in synchronization with Ethereum Smart Contracts.

You May Also Read: 5 Popular Use Cases of Ethereum Smart Contracts

They have been optimized for scaling data and produces ecosystems filled with crypto-based collectibles, scarce items, and traceable tokens. The main aim of the Loom Network is to facilitate the establishment of a universe that spans several games.

Any interested company can make use the Loom Network while implementing their own rulesets. The side chains are individualized with their own consensus mechanism which facilitates high scalability.

The Loom Network uses delegated Proof-of-Stake algorithm, which enables the development of social apps and massive online games.

Here, as a result, tokens are sent back and forth between the network and side chains via plasma-based relays.

You May Also Read:  Blockchain Technology

The LOOM Token

The token for the Loom Network is LOOM. It is an ERC-20 token which can be used to buy membership tiers. Currently, there is one membership tier (user tier), and it costs 1 token. Users, with this membership, can transfer tokens between dAppChains and the Ethereum blockchain.

Developers are offered another membership tier in the future. The developer membership allows developers to run dApps on the Loom Network. However, there are fees which one needs to pay for a developer license. Casual developers are charged 10 tokens, while professional developers are charged 100 tokens.

Payment of a certain fee, the amount of which is proportional to the number of transactions on the network is also involved, in order to become a node or validator. 

The Loom Network was privately funded by TechStars NY.

You May Also Read: Nodes

DApp chains on the Loom Network

CryptoZombies, a free lesson that teaches developers to build games on Ethereum and contains information about writing smart contracts on Ethereum and building dAppChains on the Loom Network is scheduled to be forked onto the Loom Network as its second dAppChain.

It is one of the most popular resources for blockchain programming, so much so that about 130,000 students are currently using CryptoZombies as a teaching tool to learn how to code blockchain.

Coding language

The main coding language used on the Loom Network’s dApps is Solidity and SolidityX. Solidity code snippets are available online at EthFiddle. It currently has over 10,000 users. SolidityX is a programming language that compiles to Solidity. It secures Solidity for development by detecting bugs.

You May Also Read: A Beginner’s Guide To Solidity And Some Of Its Use Cases

Scaling solution

Loom Network’s scaling solution for Ethereum is DelegateCall. It is built as a dApp with a decentralized backend. Users that answer questions receive ERC-20 tokens for upvotes given to their projects. The goal is to support thousands of dApps.

Several types of transactions are supported by dApps which include Voting, Creating accounts, Posting messages,

Availability

The Loom Network has a market capitalization of $188 million and its daily volume is around $4.4 million. 603.8 million LOOM, is in circulation, while the total supply is 1 billion LOOM. Several exchanges are trading LOOM including Tidex, CoinExchange, and Binance. It is usually paired with ETH and BTC.

Here Are A Few Other Articles For You To Read:

Rishma Banerjee

Rishma is currently pursuing a bachelor’s degree in International Relations and has a special place in her life for sifting through all sorts of random trivia, thank you very much.

Related Posts