Loom Network solves the problem of scalability for the Ethereum and helps in hosting scalable DApps and different smart contracts on the Ethereum side chains. It works on the concept of Plasma to provide highly scalable DApps.
Another USP of the Loom network is their building of online games and social network DApps using the core blockchain technology. These games and DApps will not be censorable because these are built on the blockchain like www.obanc.com.au.
Loom network is a platform as a service (PaaS) which allows the Ethereum based apps to run on the main chain as well as private and semi-public blockchains. All the developers get the opportunity to have smart contracts to get computing power at lower cost for tasks which don’t require the full security or access more power for the task which requires the complete security of the blockchain.
Working of the Loom Network
Many different types of DApps are built on the Ethereum side chain using the Loom network which is called as DAppchains.
These DApps are lined to the Ethereum smart contracts which record the state of the DAppchains periodically. Also, if the user has loom tokens, then the native assets of the DAppchains can also be transferred to the Ethereum mainnet.
There are SDK available on the Loom network which makes it very easy for the developers to deploy and build their apps and games on the Loom DAppchains. All the DAppchains together make up the Loom network where you can access through LOOM tokens.
In simple words, one DApp is equivalent to one DAppchain. In this way, a dedicated chain is given to a DApp where all the datasets and the rules of the app can be implemented without the bottleneck of the Ethereum main chain.
The base layer of the Ethereum remains decentralized and the Ethereum blockchain does not bloat up and remains scalable.
The Loom tokens are used for buying products and services offered by the network. They are ERC20 tokens which are paid to use the SDK of the network and get the exclusive membership of the games on the network.