What is Loom Network? All You Need to Know About LOOM
Loom Network (LOOM) is a blockchain platform that builds scalable decentralized applications with high-performance and low-cost transactions.
As the blockchain ecosystem grows, developers increasingly seek platforms that allow them to create decentralized applications without the need to learn new programming languages or migrate to different ecosystems. These platforms must also offer scalability and efficiency to meet the demands of large-scale applications. Additionally, developers look for networks that support high-performance transactions while maintaining security and decentralization. Loom Network addresses these needs by providing a flexible and scalable platform for developers to build smart contracts using familiar tools, making blockchain development more accessible and efficient.
What is Loom Network (LOOM)?
Loom Network was founded in 2017 by Matthew Campbell, James Martin Duffy, and Luke Zhang to address the scalability challenges that plagued blockchain adoption. The team initially focused on creating a layer-2 scaling solution for Ethereum, providing developers with the tools to build high-performance decentralized applications (dApps). One of their earliest efforts was Crypto Zombies, launched in 2017, an online coding school that educated developers on how to build Ethereum dApps.
By 2018, Loom Network launched its Basechain mainnet, which was primarily focused on social media and gaming apps. This sidechain solution allowed for faster transactions and lower costs, while keeping the security of Ethereum intact. In 2019, Loom Network announced its multichain PlasmaChain project, expanding its ecosystem to support interoperable applications across multiple blockchains including Bitcoin, Ethereum, EOS, Tron, and Cosmos.
Loom Network capitalized on the Initial Coin Offering (ICO) trend in 2017, raising $45.8 million, though the sale occurred as the crypto market began to downturn. Despite these market conditions, Loom continued to develop its technology and enhance its platform. In 2020, the project underwent a rebranding, transitioning from an Ethereum-based scaling solution to a fully independent blockchain ecosystem, marking an important moment in its development.
How Does Loom Network Work? Technology and Consensus Algorithm
The Loom Network’s technology focuses on providing scalable solutions for Ethereum-based decentralized applications (dApps). Initially developed as an Ethereum sidechain, Loom Network has evolved with the integration of the zkLoom protocol, a powerful scaling solution based on zero-knowledge rollups (zkRollups). The zkLoom protocol aims to improve both the performance and security of blockchain transactions while reducing the overall environmental impact and operational costs.
zkLoom operates by accepting transactions from users, processing them, and then generating zero-knowledge proofs (zkSNARKs). These proofs are verified by a smart contract on the Ethereum blockchain every time a new block is created. This mechanism ensures that all transactions are processed correctly, as the Ethereum network will reject any invalid proofs submitted by malicious validators. Additionally, users can recover funds transferred from Ethereum to a zkLoom blockchain, even if all validators go offline or refuse to process transactions. This security model removes the need to trust validators, allowing users to rely on Ethereum’s robust security guarantees.
The efficiency of zkLoom comes from its ability to move transactions off-chain, grouping them into batches and significantly reducing transaction fees and processing times. This approach also makes it easier to launch new blockchains with fewer validators while maintaining the security and cost-effectiveness required for smooth operations. zkRollup protocols rely on cryptography for security, rather than traditional game theory models, offering a promising scaling solution for Ethereum.
Source: loomx.io
Moreover, the Loom SDK 3.0 provides developers access to zkRollup architecture, cross-chain oracles, and Binance Smart Chain support. This toolset allows developers to quickly create specialized Loom blockchains for their applications without dealing with complex interconnections between major blockchain networks. With the Loom SDK, developers can build diverse dApps that easily interact with multiple blockchains.
Loom Network’s evolution has been driven by the goal of simplifying blockchain adoption, not just for developers but also for end users. Basechain, a part of the Loom ecosystem, is designed for maximum usability. Whether for DeFi, gaming, or supply chain management, Basechain supports any type of dApp and provides an intuitive user experience. This design philosophy allows dApp developers to create applications that are easily accessible by mainstream users, promoting broader adoption of blockchain technology.
Loom Network’s technological innovations, including zkLoom, rollups, and cross-chain compatibility, provide a scalable, secure, and efficient platform for Ethereum-based dApps.
Consensus Algorithm
Loom Network employs a Delegated Proof of Stake (DPoS) consensus algorithm specifically optimized for fast transaction confirmations and scalability. This consensus mechanism enables the network to support high transaction throughput, making it suitable for real-world decentralized applications (dApps) that require low-latency transactions. DPoS allows token holders to delegate their voting power to a smaller group of validators, who then validate transactions and propose new blocks on behalf of the entire network. This setup ensures that the network remains decentralized while providing faster confirmation times than traditional Proof of Work (PoW) or Proof of Stake (PoS) algorithms.
The Basechain, which runs on Loom Network’s DPoS consensus, is secured by 21+ validators and thousands of individual token delegators. Token holders can vote for these validators, ensuring that those responsible for securing the network are accountable to the community. Validators, in turn, propose new blocks and confirm transactions, with their performance being continuously monitored. Elections for validators are held regularly, ensuring the community can replace underperforming or malicious ones. The decentralized voting process allows the network to maintain security while achieving impressive transaction speeds, with finality of just one second, compared to Ethereum’s 15 seconds.
DPoS provides an additional advantage by reducing the computational and energy costs of validating transactions. Unlike PoW systems, where nodes must compete to solve complex cryptographic puzzles, DPoS relies on a democratic voting process, making it more energy-efficient. Furthermore, validators in the Loom Network do not need to perform repetitive computations for each transaction, which significantly improves the network’s overall efficiency.
In the Loom Network’s DPoS system, each validator’s votes are proportional to the number of tokens delegated to them. This ensures that validators who act in the community’s best interest are rewarded with more voting power. Additionally, token holders can delegate their votes to other trusted participants, enabling even those with smaller token holdings to influence the network’s governance.
While the current DPoS system is highly efficient, future improvements are being considered. For instance, bonding mechanisms could further incentivize good behavior by requiring validators to lock up tokens as collateral, which can be seized in cases of malicious activity. Other potential improvements include adding Proof of Authority (PoA) elements to verify the identity of validators and implementing vote expiration to ensure that inactive accounts do not retain voting power indefinitely.
Loom Network Use Cases
Loom Network is a versatile blockchain platform designed to address the scalability challenges of Ethereum and other decentralized networks. It enables developers to build decentralized applications (dApps) with high performance, low fees, and fast transaction speeds. Loom Network’s sidechain architecture, combined with its zkLoom protocol and Delegated Proof of Stake (DPoS) consensus, provides multiple use cases across various industries. Here are some of the key use cases for Loom Network:
- Gaming and NFTs: Loom Network enables the creation of scalable, fast, and secure gaming dApps. It supports Non-Fungible Tokens (NFTs), allowing developers to build blockchain-based games with in-game assets and collectibles that players can trade, own, and monetize.
- DeFi Applications: The Loom Network’s zkLoom protocol offers scalability and security, making it suitable for decentralized finance (DeFi) applications. Its interoperability with Ethereum and other blockchains allows developers to create cross-chain DeFi platforms that can handle large transaction volumes with low fees.
- Enterprise Solutions: Loom’s platform can be used by enterprises to develop customized decentralized applications for supply chain management, healthcare, and finance. With its multi-chain architecture, businesses can build private dApps while leveraging Ethereum’s security.
- eLearning and Virtual Platforms: Loom Network’s Basechain architecture supports the creation of decentralized education platforms, virtual worlds, and e-learning environments. These platforms can utilize blockchain for secure, transparent credentialing and immutable records.
These diverse use cases demonstrate how Loom Network’s architecture and technology can support various decentralized applications across industries.
Loom Network Main Features
Loom Network provides developers with essential tools to create scalable, multichain dApps. It offers fast transactions, zero user fees, and cross-blockchain compatibility. Here are the main features that support its functionality.
Production-Ready and Future-Proof Platform
Loom Network provides a seamless, production-ready platform for dApp developers. It allows them to onboard thousands of users without waiting for a distant scaling solution. It offers lightning-fast transactions with no gas fees, ensuring a frictionless user experience for developers and users.
The platform simplifies interactions by eliminating the need for MetaMask popups or extra steps. Additionally, Loom Network continuously integrates with new blockchains, ensuring that dApps launched on its platform remain future-proof and prevent the risk of vendor lock-in or platform obsolescence.
Multichain Capabilities
Loom Network’s Basechain offers robust multichain capabilities, making it accessible to various blockchain communities. By integrating with major chains like TRON and Binance Chain, Basechain enables seamless interaction between dApps across multiple blockchains. Developers can build dApps that support DeFi, supply chain management, gaming, virtual reality, and more. This flexibility allows dApps to operate in a multichain environment, providing options such as collateralizing assets across different blockchains. With these integrations, Loom Network’s Basechain becomes a versatile platform suitable for any decentralized application.
Source: loomx.io
The Loom SDK
The Loom SDK provides a suite of tools for developers to create scalable and interoperable dApps. It simplifies blockchain application development, allowing developers to build dApps that run on multiple blockchains without needing extensive blockchain expertise. The SDK is divided into JavaScript, Go, and Unity SDKs, catering to different development needs.
By leveraging the Basechain network, developers can address Ethereum’s limitations, such as high gas fees and slow transaction times, making the Loom SDK an essential tool for creating high-performance dApps.
Souce: loom network lightpaper
What is the LOOM Coin?
LOOM is the native utility token powering the Loom Network for dApp development. Its total supply counts 1.3 billion units, of which 1.239 billion are already in circulation (September 2024).
The LOOM token is essential to the operation and security of the Loom Network’s mainnet, Basechain. It functions as a proof-of-stake (PoS) token, where validators and delegators stake LOOM to uphold the integrity of the network. Validators earn LOOM as block rewards for their efforts in processing transactions and maintaining the network. Delegators, who do not run their own nodes, can stake their tokens with validators to share in these rewards. This mechanism ensures the security of the network by incentivizing active participation and proper node behavior.
In addition to its role in securing the network, LOOM is also used for transaction fees and bonding. Validators running Basechain nodes are compensated through transaction fees, which not only pay for their operational costs but also help prevent spam transactions that could clog the network. Developers who use the Loom SDK to create their own blockchains must bond LOOM tokens to access Basechain’s transfer gateways and connect with other blockchains like Ethereum, TRON, and Binance Smart Chain. This bonding requirement acts as a safeguard against malicious behavior within the ecosystem.
LOOM allows developers to host decentralized applications (dapps) on Loom Network without relying on end-users to pay transaction fees. Instead of the traditional fee-per-transaction model, developers pay a fixed fee for dapp hosting, making the network more developer-friendly and offering users a smoother, more affordable experience.
Is LOOM a Good Investment?
Loom Network offers strong scalability solutions for decentralized applications (dapps), particularly with its integration of multiple blockchains like Ethereum, TRON, and Binance Smart Chain. This multichain approach makes it appealing to developers seeking flexibility and faster transactions. However, a potential downside is that Loom Network has faced significant competition from other scaling solutions, which may limit its growth and market adoption. While it has useful features, its ability to stand out in the highly competitive blockchain ecosystem remains uncertain.
How to Own LOOM?
To own LOOM, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy LOOM.
News on Loom Network
This news was released in July 2024, bringing exciting updates from Loom Network. The zkLoom Sepolia testnet has launched, offering improved developer experience and multi-protocol integration. CryptoZombies won a grant from Optimism RetroPGF, and the team revealed plans for CryptoZombies Apocalypse, a play-to-learn game set to release next year. Additional developments include a new block explorer and zkLoom dashboard launching soon, as well as decentralized proof generation advancements for the zkLoom protocol.
Useful References
For the latest updates about Loom Network, you can visit:
Take Action on LOOM
Check out LOOM price today, and start trading your favorite currency pairs.
Related articles
What Are Altcoins?
What Is Ethereum 2.0? Understanding The Merge
What Is Dogecoin?
What is Loom Network? All You Need to Know About LOOM
What is Loom Network (LOOM)?
How Does Loom Network Work? Technology and Consensus Algorithm
Loom Network Use Cases
Loom Network Main Features
What is the LOOM Coin?
Is LOOM a Good Investment?
How to Own LOOM?
News on Loom Network
Useful References
Take Action on LOOM
Loom Network (LOOM) is a blockchain platform that builds scalable decentralized applications with high-performance and low-cost transactions.
As the blockchain ecosystem grows, developers increasingly seek platforms that allow them to create decentralized applications without the need to learn new programming languages or migrate to different ecosystems. These platforms must also offer scalability and efficiency to meet the demands of large-scale applications. Additionally, developers look for networks that support high-performance transactions while maintaining security and decentralization. Loom Network addresses these needs by providing a flexible and scalable platform for developers to build smart contracts using familiar tools, making blockchain development more accessible and efficient.
What is Loom Network (LOOM)?
Loom Network was founded in 2017 by Matthew Campbell, James Martin Duffy, and Luke Zhang to address the scalability challenges that plagued blockchain adoption. The team initially focused on creating a layer-2 scaling solution for Ethereum, providing developers with the tools to build high-performance decentralized applications (dApps). One of their earliest efforts was Crypto Zombies, launched in 2017, an online coding school that educated developers on how to build Ethereum dApps.
By 2018, Loom Network launched its Basechain mainnet, which was primarily focused on social media and gaming apps. This sidechain solution allowed for faster transactions and lower costs, while keeping the security of Ethereum intact. In 2019, Loom Network announced its multichain PlasmaChain project, expanding its ecosystem to support interoperable applications across multiple blockchains including Bitcoin, Ethereum, EOS, Tron, and Cosmos.
Loom Network capitalized on the Initial Coin Offering (ICO) trend in 2017, raising $45.8 million, though the sale occurred as the crypto market began to downturn. Despite these market conditions, Loom continued to develop its technology and enhance its platform. In 2020, the project underwent a rebranding, transitioning from an Ethereum-based scaling solution to a fully independent blockchain ecosystem, marking an important moment in its development.
How Does Loom Network Work? Technology and Consensus Algorithm
The Loom Network’s technology focuses on providing scalable solutions for Ethereum-based decentralized applications (dApps). Initially developed as an Ethereum sidechain, Loom Network has evolved with the integration of the zkLoom protocol, a powerful scaling solution based on zero-knowledge rollups (zkRollups). The zkLoom protocol aims to improve both the performance and security of blockchain transactions while reducing the overall environmental impact and operational costs.
zkLoom operates by accepting transactions from users, processing them, and then generating zero-knowledge proofs (zkSNARKs). These proofs are verified by a smart contract on the Ethereum blockchain every time a new block is created. This mechanism ensures that all transactions are processed correctly, as the Ethereum network will reject any invalid proofs submitted by malicious validators. Additionally, users can recover funds transferred from Ethereum to a zkLoom blockchain, even if all validators go offline or refuse to process transactions. This security model removes the need to trust validators, allowing users to rely on Ethereum’s robust security guarantees.
The efficiency of zkLoom comes from its ability to move transactions off-chain, grouping them into batches and significantly reducing transaction fees and processing times. This approach also makes it easier to launch new blockchains with fewer validators while maintaining the security and cost-effectiveness required for smooth operations. zkRollup protocols rely on cryptography for security, rather than traditional game theory models, offering a promising scaling solution for Ethereum.
Source: loomx.io
Moreover, the Loom SDK 3.0 provides developers access to zkRollup architecture, cross-chain oracles, and Binance Smart Chain support. This toolset allows developers to quickly create specialized Loom blockchains for their applications without dealing with complex interconnections between major blockchain networks. With the Loom SDK, developers can build diverse dApps that easily interact with multiple blockchains.
Loom Network’s evolution has been driven by the goal of simplifying blockchain adoption, not just for developers but also for end users. Basechain, a part of the Loom ecosystem, is designed for maximum usability. Whether for DeFi, gaming, or supply chain management, Basechain supports any type of dApp and provides an intuitive user experience. This design philosophy allows dApp developers to create applications that are easily accessible by mainstream users, promoting broader adoption of blockchain technology.
Loom Network’s technological innovations, including zkLoom, rollups, and cross-chain compatibility, provide a scalable, secure, and efficient platform for Ethereum-based dApps.
Consensus Algorithm
Loom Network employs a Delegated Proof of Stake (DPoS) consensus algorithm specifically optimized for fast transaction confirmations and scalability. This consensus mechanism enables the network to support high transaction throughput, making it suitable for real-world decentralized applications (dApps) that require low-latency transactions. DPoS allows token holders to delegate their voting power to a smaller group of validators, who then validate transactions and propose new blocks on behalf of the entire network. This setup ensures that the network remains decentralized while providing faster confirmation times than traditional Proof of Work (PoW) or Proof of Stake (PoS) algorithms.
The Basechain, which runs on Loom Network’s DPoS consensus, is secured by 21+ validators and thousands of individual token delegators. Token holders can vote for these validators, ensuring that those responsible for securing the network are accountable to the community. Validators, in turn, propose new blocks and confirm transactions, with their performance being continuously monitored. Elections for validators are held regularly, ensuring the community can replace underperforming or malicious ones. The decentralized voting process allows the network to maintain security while achieving impressive transaction speeds, with finality of just one second, compared to Ethereum’s 15 seconds.
DPoS provides an additional advantage by reducing the computational and energy costs of validating transactions. Unlike PoW systems, where nodes must compete to solve complex cryptographic puzzles, DPoS relies on a democratic voting process, making it more energy-efficient. Furthermore, validators in the Loom Network do not need to perform repetitive computations for each transaction, which significantly improves the network’s overall efficiency.
In the Loom Network’s DPoS system, each validator’s votes are proportional to the number of tokens delegated to them. This ensures that validators who act in the community’s best interest are rewarded with more voting power. Additionally, token holders can delegate their votes to other trusted participants, enabling even those with smaller token holdings to influence the network’s governance.
While the current DPoS system is highly efficient, future improvements are being considered. For instance, bonding mechanisms could further incentivize good behavior by requiring validators to lock up tokens as collateral, which can be seized in cases of malicious activity. Other potential improvements include adding Proof of Authority (PoA) elements to verify the identity of validators and implementing vote expiration to ensure that inactive accounts do not retain voting power indefinitely.
Loom Network Use Cases
Loom Network is a versatile blockchain platform designed to address the scalability challenges of Ethereum and other decentralized networks. It enables developers to build decentralized applications (dApps) with high performance, low fees, and fast transaction speeds. Loom Network’s sidechain architecture, combined with its zkLoom protocol and Delegated Proof of Stake (DPoS) consensus, provides multiple use cases across various industries. Here are some of the key use cases for Loom Network:
- Gaming and NFTs: Loom Network enables the creation of scalable, fast, and secure gaming dApps. It supports Non-Fungible Tokens (NFTs), allowing developers to build blockchain-based games with in-game assets and collectibles that players can trade, own, and monetize.
- DeFi Applications: The Loom Network’s zkLoom protocol offers scalability and security, making it suitable for decentralized finance (DeFi) applications. Its interoperability with Ethereum and other blockchains allows developers to create cross-chain DeFi platforms that can handle large transaction volumes with low fees.
- Enterprise Solutions: Loom’s platform can be used by enterprises to develop customized decentralized applications for supply chain management, healthcare, and finance. With its multi-chain architecture, businesses can build private dApps while leveraging Ethereum’s security.
- eLearning and Virtual Platforms: Loom Network’s Basechain architecture supports the creation of decentralized education platforms, virtual worlds, and e-learning environments. These platforms can utilize blockchain for secure, transparent credentialing and immutable records.
These diverse use cases demonstrate how Loom Network’s architecture and technology can support various decentralized applications across industries.
Loom Network Main Features
Loom Network provides developers with essential tools to create scalable, multichain dApps. It offers fast transactions, zero user fees, and cross-blockchain compatibility. Here are the main features that support its functionality.
Production-Ready and Future-Proof Platform
Loom Network provides a seamless, production-ready platform for dApp developers. It allows them to onboard thousands of users without waiting for a distant scaling solution. It offers lightning-fast transactions with no gas fees, ensuring a frictionless user experience for developers and users.
The platform simplifies interactions by eliminating the need for MetaMask popups or extra steps. Additionally, Loom Network continuously integrates with new blockchains, ensuring that dApps launched on its platform remain future-proof and prevent the risk of vendor lock-in or platform obsolescence.
Multichain Capabilities
Loom Network’s Basechain offers robust multichain capabilities, making it accessible to various blockchain communities. By integrating with major chains like TRON and Binance Chain, Basechain enables seamless interaction between dApps across multiple blockchains. Developers can build dApps that support DeFi, supply chain management, gaming, virtual reality, and more. This flexibility allows dApps to operate in a multichain environment, providing options such as collateralizing assets across different blockchains. With these integrations, Loom Network’s Basechain becomes a versatile platform suitable for any decentralized application.
Source: loomx.io
The Loom SDK
The Loom SDK provides a suite of tools for developers to create scalable and interoperable dApps. It simplifies blockchain application development, allowing developers to build dApps that run on multiple blockchains without needing extensive blockchain expertise. The SDK is divided into JavaScript, Go, and Unity SDKs, catering to different development needs.
By leveraging the Basechain network, developers can address Ethereum’s limitations, such as high gas fees and slow transaction times, making the Loom SDK an essential tool for creating high-performance dApps.
Souce: loom network lightpaper
What is the LOOM Coin?
LOOM is the native utility token powering the Loom Network for dApp development. Its total supply counts 1.3 billion units, of which 1.239 billion are already in circulation (September 2024).
The LOOM token is essential to the operation and security of the Loom Network’s mainnet, Basechain. It functions as a proof-of-stake (PoS) token, where validators and delegators stake LOOM to uphold the integrity of the network. Validators earn LOOM as block rewards for their efforts in processing transactions and maintaining the network. Delegators, who do not run their own nodes, can stake their tokens with validators to share in these rewards. This mechanism ensures the security of the network by incentivizing active participation and proper node behavior.
In addition to its role in securing the network, LOOM is also used for transaction fees and bonding. Validators running Basechain nodes are compensated through transaction fees, which not only pay for their operational costs but also help prevent spam transactions that could clog the network. Developers who use the Loom SDK to create their own blockchains must bond LOOM tokens to access Basechain’s transfer gateways and connect with other blockchains like Ethereum, TRON, and Binance Smart Chain. This bonding requirement acts as a safeguard against malicious behavior within the ecosystem.
LOOM allows developers to host decentralized applications (dapps) on Loom Network without relying on end-users to pay transaction fees. Instead of the traditional fee-per-transaction model, developers pay a fixed fee for dapp hosting, making the network more developer-friendly and offering users a smoother, more affordable experience.
Is LOOM a Good Investment?
Loom Network offers strong scalability solutions for decentralized applications (dapps), particularly with its integration of multiple blockchains like Ethereum, TRON, and Binance Smart Chain. This multichain approach makes it appealing to developers seeking flexibility and faster transactions. However, a potential downside is that Loom Network has faced significant competition from other scaling solutions, which may limit its growth and market adoption. While it has useful features, its ability to stand out in the highly competitive blockchain ecosystem remains uncertain.
How to Own LOOM?
To own LOOM, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy LOOM.
News on Loom Network
This news was released in July 2024, bringing exciting updates from Loom Network. The zkLoom Sepolia testnet has launched, offering improved developer experience and multi-protocol integration. CryptoZombies won a grant from Optimism RetroPGF, and the team revealed plans for CryptoZombies Apocalypse, a play-to-learn game set to release next year. Additional developments include a new block explorer and zkLoom dashboard launching soon, as well as decentralized proof generation advancements for the zkLoom protocol.
Useful References
For the latest updates about Loom Network, you can visit:
Take Action on LOOM
Check out LOOM price today, and start trading your favorite currency pairs.
Related articles
What Are Altcoins?
What Is Ethereum 2.0? Understanding The Merge