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What Is Loom Cryptocurrency?

Innovation is not difficult to come by in the world of blockchain technology. Loom Network aims to become a different breed of blockchain platform, as it mainly focuses on large-scale online games and applications. It is a very interesting approach, and now is a good time to take a closer look at what this particular project is all about.

The Purpose of Loom Network

There is a lot more to blockchain technology than just financial transactions. Even though it’s evident that this technology will mainly disrupt the financial sector, projects such as Loom Network show that there are other opportunities available. Right now, this project focuses on games and social applications which can make use of this technology.

How Does it Work?

Loom Network largely revolves around DAppChains. More specifically, it aims to establish an ecosystem where token-based karma, Ethereum-based crypto-collectibles, games, and social apps can all come together without any friction. All of this will be based on forkable, decentralized, and human-readable blockchain rulesets.

Moreover, Loom Network will help build games which cannot be built without the blockchain. Although it sounds like a niche market, the project’s team has rather bold ambitions. With provably scarce items, traceable tokens, and multi-game-spanning universes, there certainly are a lot of opportunities waiting to be explored. Additionally, the project also wants to build new types of social applications not inherently driven by advertising.

The DAppChains themselves are full-scale blockchains running in parallel to Ethereum smart contracts. In the modern world, they are referred to as sidechains, but they are a rather advanced form in terms of scaling data rather than focusing on regular network transactions. Through the Loom SDK, anyone can generate their own DAppChain with its own consensus mechanism. It is quite an interesting concept which will certainly attract a lot of attention moving forward.

The Loom Token Explained

As one would expect, Loom Network has its own token. It’s known as Loom, and it allows smart contract developers to make their DApps as secure and powerful as they want. This token is also a brand-new way to incentivize Ethereum-based DApps, which will be of great interest to developers all over the world.

The Road Ahead

Even though Loom Network will only launch this month, it will be interesting to see what the future holds for this platform. Building Twitter-scale apps on top of Ethereum will not be an easy feat. It is certainly possible to do so in the future, as Loom Network seems to offer a lot of additional scaling solutions for Ethereum in its current form.

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Andreessen Horowitz’s $300m Crypto Fund Buys Stakes in Stablecoin Project

An upcoming stable coin project featuring a loaning system has bagged a $15 million investment from Andreessen Horowitz. VC Firm to Govern MakerDAO The venture capital firm, with a history of high profile investments into crypto projects, bought 6 percent of the total MKR supply through its $300m crypto fund, a16z crypto. By doing so, the US firm has got the rights to govern the Maker network, which includes MakerDAO, the stable coin firm, and the Dai Credit System as it becomes the first DAO-enabled stable coin project. The investment also marks a16z’s very first strategic purchase in the crypto industry. Katie Haun, general partner at a16z, believes MakerDAO will provide a compelling opportunity to their fund in the crypto-space. The former federal prosecutor, who is also renowned for having led the investigation against Mt Gox and Silk Road, said in her press statement: “MakerDAO’s technology, ecosystem and talent have put theory into action to deliver a decentralized stablecoin that we believe will help drive the future of the crypto economy.” For MakerDAO, a $15 million investment means more funds to develop their Dai Credit System. Not to be confused with MKR, which is a proof-of-stake token, the Dai Credit System uses a specialized stablecoin called Dai. The Dai token is soft-pegged to the US Dollar and is created during a seemingly unique loaning process. “Dai is created when asset owners deposit collateral to secure a loan, which is denominated in Dai stablecoin […] This allows owners of illiquid or unstable assets that wish to retain those assets over the long term to gain short-term liquidity, i.e., an ability to spend value otherwise locked in those assets while still retaining those assets,” stated Haun. For now, borrowers will be able to use ETH token as collateral to secure a loan from MakerDAO. The team has also launched a multi-collateral DAI system on the Kovan Testnet. It would allow borrowers to collateralize a diverse basket of crypto-assets in addition to ETH. The Maker network, in general, makes use of a set of autonomous smart contracts to coordinate the loan system. That said, anybody with an internet connection and with some collateral to spare can create Dai stablecoins, without needing an intermediary. “With an exciting fall full of announcements, MakerDAO is making its mark as a vanguard of blockchain technology. The team looks forward to continued product excellence and rapid Dai adoption in the coming months,” the Maker team said as it signed off. Image from Shutterstock The post Andreessen Horowitz’s $300m Crypto Fund Buys Stakes in Stablecoin Project appeared first on NewsBTC.

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