Loom Network, founded in 2017 by Matthew Campbell, Luke Zhang, and James Duffy, addresses blockchain scalability issues through 'layer 2' solutions, enhancing Ethereum's capabilities. Loom allows developers to create sidechains for various applications, prioritizing speed and cost-efficiency.
The Loom Network utilizes the zkLoom protocol to ensure the security of its blockchains efficiently. Leveraging the Ethereum network, renowned for its smart contract capabilities and supported by a significant cryptocurrency, zkLoom eliminates the need to trust validators. Instead, it provides security assurances through Ethereum, enabling zkLoom blockchains to operate securely with minimal validators. This approach facilitates the establishment of new blockchains and their cost-effective operation.
With features like PlasmaChain and GameChain, it supports fast, low-fee transactions, and decentralized applications (dApps). Notably, Loom developed CryptoZombies, a popular coding tutorial. It aims to be a central hub connecting major blockchains, promoting interoperability and widespread blockchain adoption.
The LOOM token serves several key functions within the Loom Network ecosystem. It is used for staking on the PlasmaChain, a blockchain connected to Ethereum that employs Proof-of-Stake (PoS) for network security. Validators, or those who secure the network, stake LOOM tokens, run necessary hardware and software to process transactions, and receive rewards in LOOM.
This mechanism not only secures the network but also incentivizes token holders to actively participate in its governance and maintenance, contributing to the overall functionality and security of the Loom Network.
