Loom Network is an American startup with its own cryptocurrency, implemented on the Ethereum blockchain. It is designed to solve the problem of scalability when working with decentralized applications.
The new platform was created on base of the Ethereum blockchain. Its main task is to solve the problem of performance, which network users faced. After the launch of Cryptokitties. the network literally went under the leaning amount of the transactions. As a result, transfers of funds were frozen and carried out only a few days later.
The developers of Loom Network offered their solution to the problem. Instead of running all applications on a single network, they introduced a set of tools to create a DAppChain — a sidechain or a mini-blockchain. That is, each individual application will run on its blockchain and thus not overload the main Ethereum network.
Loom Network is mainly aimed at the creators of games and social applications. Financial issues that require increased security and honesty will be implemented in the main Ethereum blockchain. All other points, such as changing the avatar in the game or commenting in the chat, for which security is not critical, are implemented in the DAppChain.
A team of 25 specialists is working on the project. Loom Network is co-founded by:
- James Duffy, a crypto-enthusiast and entrepreneur. He was a leading developer at Casual Steps Inc., also worked in KoreaJobFinder. Versed in marketing;
- Luke Zhang, an IT specialist. Worked as a developer at BlockMasonInc, Workpolice, Elemica;
- Mattew Campbell, who worked for Hyperworks Inc., Thomson Reuters, Digital Ocean, Err Plane.
Advantages and disadvantages
Loom Network allows developers of decentralized applications to address the issues of scalability of Ethereum blockchain. At the same time, they receive the following benefits:
- The actions of DApp applications will be accelerated in those moments where users do not need to use all the security of the blockchain. This will reduce the cost. As a result, the speed of the DApp will increase, and the service fees will be less;
- unlike the main Ethereum network, smart contracts will receive different priorities;
- DApps developers will be offered a database of convenient standard templates written in the language Solidity. This will make it easier to work with the Ethereum blockchain.
The main disadvantage of the project is its centrality. However, the developers plan to make Loom Network more decentralized in the future.
Cryptocurrency of Loom Network has a stock Ticker LOOM. It was established in the first quarter of 2018. A total of 1 billion coins was released, of which 606 million LOOM are in circulation at the time of writing.
As of May 23, 2018, the total capitalization exceeds 243 million dollars. The daily turnover on all exchanges is $8 million. The token costs $0.4.
Trading with LOOM token began on March 14, 2018, at a price of $0.076. So far, the coin shows an upward trend in growth. Especially the token has grown in value since May 2, when listing of LOOM on the Binance crypto exchange was held. In just 3 days, the price rose from $0.31 to $0.69.
How to buy
Tokens can be obtained only by buying on crypto exchanges. The coin got into the listing of such promising and well-developing exchanges as KuCoin and Binance. Also, the coin can be purchased at the crypto currency exchange Yobit, where replenishment in roubles is available.