Loom Network (LOOM): Bridging Chains for Seamless DApp Development

While blockchain technology has opened the world to endless opportunities, its structure and operation are quite complex. Deploying and running decentralized applications (DApps) on a blockchain network can be pretty complicated for web 2.0 developers, who have to learn new programming languages and understand the architecture of blockchain networks.

However, Loom Network is seeking to cut down on these complexities and make it easier for all developers to deploy their creations across multiple platforms so they can easily reach a wide pool of users. Let's learn more about how Loom is making a difference in the web3 space by improving visibility and scalability for developers. 

Key Takeaways:

• Loom closes the scalability gap by connecting developers to multiple chains and opening DApp access to a vast audience.

• By leveraging a DPoS consensus mechanism and ready-to-use SDKs, DApp developers can seamlessly and simultaneously deploy and run their DApps on individual sidechains.

• LOOM, the Loom Network’s native token, secures the platform and comes in both ERC-20 and BEP-20 standards.

What Is Loom Network?

Loom Network is a cross-chain optimized platform that allows developers to build and deploy high-performance DApps simultaneously across multiple blockchain networks, including Bitcoin, Ethereum, Tron and BNB Chain (soon to add Cosmos and EOS).

Designed as an interoperability platform, Loom has simple and user-friendly features that enable developers to easily create and run DApps at near-instant transaction finality. Users also stand to benefit from Loom as they can interact with DApps at nil gas fees without having to download crypto wallet software.

Launched in 2017, Loom revamped its road map in 2021 to focus on its mainnet, known as Basechain, which allows deployment of enterprise-grade DApps in a wide range of sectors. 

How Does Loom Network Work?

Loom is powered by two main approaches — a delegated proof of stake (DPoS) consensus mechanism and the use of software development kits (SDK) that target developers. Both methodologies optimize the platform for security and scalability since the SDKs simplify the deployment of DApps across major chains, opening up a broader user base. 

Loom’s mainnet, Basechain, is a DPoS blockchain that allows LOOM token holders to delegate their tokens to secure the network. Unlike proof of stake (PoS), in which nodes validate new blocks, DPoS provides for delegation, which confirms transactions ahead of time and makes the process faster and perfect for scaling. That’s what serious real-world DApps need. 

Loom is EVM-compatible, opening its network for Ethereum developers to create DApps and smart contracts in the Solidity programming language. Furthermore, Loom has launched an online tutorial, CryptoZombies, a fun way for developers to learn how to write Solidity smart contracts for Ethereum apps.

Source: Loom

Another critical component of Loom’s operations is its easy-to-use SDKs that target app developers looking to build on the platform. Developers without basic Solidity knowledge can utilize the SDKs to build any type of DApp. 

The applications are then deployed into the Loom Network using its EVM-compatible sidechains, called DAppChains. The sidechains also allow developers to choose data protocols, consensus methods and more for their applications.

The SDKs available on Loom Network include the following.

Loom SDK

Loom SDK is a blockchain development kit pluggable at the contract and consensus layers. The first component is a peer-to-peer (P2P) layer that accommodates various BPFT engines, such as Tendermint. The second is a DPoS layer, which can be tailored to the specific requirements of individual chains.

The SDK enables developers to:

• Create smart contracts written in Go, Solidity and gRPC-supported languages

• Complete multi-transfers of assets, DApps and more into the Ethereum backend

• Access a host of blockchain services including indexing, signing and built-in coin

Source: Loom

Unity SDK

Unity is a widely used game developer platform known for its ease of use. Loom leverages Unity's popularity to create Unity SDK, allowing anyone without blockchain knowledge to build game DApps that run on iOS, Android or web extensions on its DAppChains.

The open-source SDK is easy to learn and compatible with most hardware, comes with in-built account management systems and is powerful enough to create a variety of games.

Unity SDK allows developers to:

• Read and write transactions on a DAppChain

• Transfer game assets to Ethereum

• Customize private key management

• Audit the code

Go Contract SDK

This SDK offers a simplified interface for DApp developers to easily connect to DAppChains and build their DApps, allowing them to focus on their applications’ functionalities rather than managing complex blockchain logic. 

Go Contract offers the following benefits:

• Easy-to-use APIs

• Multilingual language support — Unity, React, Python and Go

• Default customization settings 

Loom Network Key Features

The Loom Network ecosystem offers the following features.

Basechain

Basechain is Loom Network’s mainnet. It’s audited by Trail of Bits, a renowned information security company, and secured by more than 21 validators.

Basechain is a multichain hub that supports ETH as well as ERC-20 and ERC-721 token standards. Its interoperability across major blockchains and DPoS consensus make it ideal for DApps requiring a faster, smoother user experience. The DPoS blockchain can be used to create any type of DApp, including gaming, virtual reality, DeFi, e-learning platforms and more. 

As ideal as Loom Network is, it can’t escape transaction signing, which can be time-consuming. However, the platform utilizes an easy Universal Transaction Signing system that processes transactions 10 times faster than the Bitcoin and Ethereum blockchains — and yet, it doesn’t require developers to change any code on their apps to accommodate multiple blockchains.

Additionally, Loom users can seamlessly connect any Layer 1–compatible wallet to Basechain. This enables them to engage with any DApp on Layer 2, gas-free and at a faster speed, without having to change their wallet or download additional software.

zkLoom

Loom’s ZK-rollup protocol, zkLoom, is an Ethereum scalable solution that aims to optimize Loom Network’s performance and security by shifting some transaction data off Ethereum and rolling it into batches.

Built on the same architecture as zkSync Era, the zkLoom Testnet brings together multiple proofs in a single transaction that can be verified across several blockchains. Validators accept and process transactions to generate verifiable zero-knowledge proofs whenever a new block is created on the network.

Benefits of zkLoom

• Faster verification times

• Enhanced transaction security

• Lower transaction fees

• Decentralized transaction security

What Is the LOOM Token?

Loom Network’s native token, LOOM, secures the platform. Developers use it to host DApps on their individual DAppChains by bonding LOOM to the network’s mainnet, Basechain. They’re required to deposit LOOM as a monthly fee to cover the costs of their apps’ users. 

Apart from covering transaction costs, LOOM can also be staked by holders, who use their tokens to help secure the network and earn rewards. 

LOOM is an ERC-20 token, but the team has since released a BEP-20 token on BNB Chain in a bid to increase liquidity, usability and utility, and the two tokens now co-exist.

LOOM Crypto Price Prediction

As of Oct 6, 2023, the price of LOOM is $0.17, a 33.79% drop from its all-time high of $0.027 on Apr 10, 2021, and over 400% higher than its all-time low of $0.032 on Jun 15, 2022.

Price prediction experts are relatively optimistic on LOOM's future. According to Bitnation's forecast, the LOOM token is expected to rise to a maximum of $0.63 in 2025 and increase to $1.51 in 2030.

Another platform, DigitalCoinPrice, is comparatively more bullish on LOOM for the long term and forecasts it will hit $0.62 in 2025 and rise to $1.79 by 2030.

Is Loom Network a Good Investment?

Loom Network is determined to become a truly decentralized platform for those who believe in the ethos of web3 and blockchain technology. The reality, however, is that even though we’d like to think that apps on Loom Network are decentralized, they’re still vulnerable to the blockchain's whims and commands — more like a centralized service. 

Loom seeks to make decentralization a reality, not just a white paper or marketing-speak. With Loom, developers can operate comprehensive DApps so their codes run on nodes and the data is fully decentralized, and can be owned by anyone prepared to run the nodes independently. 

If you prefer to use BTC in DeFi, you might turn to Lightning Network, a Layer 2 solution for Bitcoin which offers faster transactions at lower costs. However, Lightning Network isn’t primarily made for DApps, and is largely incompatible with them. This makes it costly and complex for developers to create DApps and results in a poorer experience for users. On the other hand, Loom Network's DPoS and Universal Transaction Signing features make it a more practical avenue for DApp developers and offer a friendlier UX.

The Loom Network team has also demonstrated its innovative spirit in developing AI tools such as GitHub’s Copilot, a tool to help speed up coding for developers pursuing the AI wave.

Incorporating AI in the CryptoZombies curriculum to answer questions and detect errors in a student’s codes, as well as mainnet and testnet AI-powered monitoring and troubleshooting, shows that Loom’s platform is endeavoring to grow its reach in the crypto space.

However, Loom's has shifted its focus from developing social media and gaming apps (after encountering funding issues) to providing data services for healthcare and government sectors, which may cause some to question the project’s viability. Nevertheless, Loom Network can be considered a good long-term investment as the global community slowly shifts toward investing in truly decentralized products and services. This is not financial advice, however, and as with any investment, it’s important to do your own research before investing in Loom. 

How to Buy Loom Network

You can buy LOOM as a Perpetual USDT contract on Bybit in four simple steps:

1. Sign up with Bybit to create an account.

2. Fund your account with USDT.

3. To open a position, click on the Derivatives trading terminal and choose USDT Perpetual → LOOMUSDT from the drop-down menu.

4. Click on Trade to open an order.

You can select your order preferences (Order by Qty denominates the order in LOOM tokens, while Order by Value denominates it in USDT). 

In addition, you can adjust the margin mode of your position by increasing or decreasing it, depending upon your risk appetite.

Closing Thoughts

Slow transaction times and lack of scalability on most Layer 1 blockchains are major impediments for serious DApp developers. Loom Network endeavors to solve these problems by taking smaller loads off the main blockchain to increase speed and scalability. 

Hopefully, the platform will keep its long-term focus on building more viable solutions for DApp developers and users in order to provide a better blockchain experience for all.

#Bybit #TheCryptoArk