The Loom Network is a multichain interoperability blockchain platform designed to support scalable and high-performance decentralized applications (dApps). It aimes to provide developers with tools and infrastructure to create and deploy blockchain-based applications.
The Loom Network was co-founded by Matthew Campbell, James Duffy, and Luke Zhang. They founded the project in 2017.
The primary motivation behind the creation of the Loom Network was to address scalability issues in blockchain technology, especially on platforms like Ethereum. At the time, Ethereum was struggling with high transaction fees and network congestion, making it difficult for developers to build scalable decentralized applications (dApps) with a smooth user experience. The Loom Network aimed to provide solutions for these problems by offering tools and infrastructure for building dApps on sidechains, which could process transactions more quickly and at lower costs compared to the Ethereum mainnet.
The objective here is to empower application developers with smart contracts that can harness significantly greater computing power when necessary or maintain the same level of capability while reducing costs. This is particularly valuable for tasks like user onboarding trials or applications that don't require the full security of a blockchain from the outset.
Within this framework, users gain the capability to interface with off-chain APIs developed by third parties. Loom aspires to be the ultimate platform that enables smart contract developers to build applications seamlessly without the need to switch to a different programming language. Consequently, they can effortlessly integrate their applications with the external world.
The Loom Network has implemented a version of the Plasma framework called "Plasma Cash" to enhance the scalability of Ethereum-based dApps. This technology helps reduce congestion and transaction fees on the Ethereum network.
Applications on the Loom Network can tailor their consensus mechanisms to meet their unique requirements and potential threat models. Loom simplifies the process of scaling decentralized applications on Ethereum, utilizing Delegated Proof of Stake (DPoS) sidechains to enhance scalability while benefiting from the security of the Ethereum mainnet.
The Loom Network offers a software development kit (SDK) that developers can use to build dApps on various blockchain networks, including Ethereum and Binance Smart Chain. This SDK simplifies the development process by providing tools, libraries, and documentation.
Loom Network utilizes sidechains, which are separate blockchains connected to a main blockchain (such as Ethereum). Sidechains enable faster and more scalable transactions while maintaining compatibility with the main blockchain's security.
The Loom Network ensures its security with the zkLoom protocol, designed for streamlined blockchain operations. Ethereum, renowned as one of the leading open-source blockchains for smart contracts, enjoys support from the second-largest cryptocurrency community. With the zkLoom blockchain, the need to place trust in validators is eliminated, and security assurances are instead derived from Ethereum's robust framework.
By harnessing Ethereum's security capabilities, zkLoom blockchains operate with a minimal number of validators, making it markedly more straightforward and cost-effective to establish and maintain new blockchains
The Loom Network is popular in the gaming industry, with several blockchain-based games and applications built on its platform. These games often utilize Loom's scalability solutions to provide a smoother user experience.
LOOM is the native cryptocurrency of the Loom Network. It’s an ERC-20 token that has various use cases within the ecosystem, including staking for network security and participating in governance decisions.
The LOOM token serves as a membership credential, granting access to all applications hosted on the Loom Network. This token operates seamlessly across all DAppChains within the Loom Network, facilitating the transfer of digital assets and data between Ethereum and Loom DAppChains.
In some cases, LOOM tokens are used as economic incentives within specific dApps or projects built on the Loom Network. Developers can design their applications to reward users with LOOM tokens for specific actions, such as contributing to the network or participating in a game.
LOOM tokens can be staked by network participants to help secure the Loom Network and its sidechains. Stakers are rewarded with additional LOOM tokens as an incentive for maintaining the network's security and stability. Staking is a common practice in blockchain networks to ensure the integrity of the network.
LOOM tokens are designed to be cross-chain compatible, meaning they can be transferred between different blockchain networks, such as Ethereum. This interoperability allows LOOM tokens to move between the Loom Network and other compatible networks.
The total supply of the Loom tokens is 1,300,000,000 with 1,219,425,698 tokens in the current circulation as of September, 2023.
At the beginning of 2021, the Loom Network underwent a significant upgrade involving the migration to a new smart contract. During this upgrade, the Loom team introduced a new token known as LOOM, replacing the previous token, LOOMv1. Notably, LOOMv1 holders had the option to exchange their tokens for the new LOOM tokens at a 1:1 ratio. The token kept the same symbol.
Average Fees on the Loom Network
The Loom Network aims to provide a more scalable and cost-effective platform for decentralized applications (dApps) compared to the Ethereum mainnet. However, the specific fee structure on the Loom Network could vary depending on factors such as the type of transaction, the particular dApp, and the consensus mechanism in use.
The Loom Token Wallets
As an ERC-20 token, LOOM can be held in most of the wallets, supporting the ERC tons, including Meta Mask, Loom Wallet (the official wallet of the project), Trezor, Ledger, Trust Wallet, Atomic Wallet, MyEther Wallet, Lumi Wallet, Exodus, etc.
