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If you’ve been passionate about crypto and blockchain technology, then there’s a good chance

you already know that scalability is one of most pressing issues that blockchain sphere faces.

Of course, there are numerous blockchain projects that have been designed specifically to

counteract this problem such as NEO, Lisk, EOS, Zilliqa, IOST, Nano, and IOTA, to name a few.

However, achieving good scalability levels is one thing, and doing so without actually

compromising decentralization is a whole other issue. Ethereum, the world’s most popular

platform for dApps is currently pioneering various scalability solutions such as sharing and the

usage of sidechains.

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This is where the Loom Network comes into the story, as it is the first Ethereum scaling solution

that allows developers to run large-scale applications.

What is Loom Network?

CoinDigital.com

In short, Loom Network is building a fundamental infrastructure that helps Ethereum scale. More

precisely, the Loom Network is a second layer scaling solution for Ethereum that makes allows

it to run highly scalable dApps and smart contracts on its sidechains.

Calling itself a next-generation blockchain-based platform with a strong focus on building large

scale social apps and online games. This PaaS (platform as a service) allows Ethereum-based,

Solidity applications to run on the main chain and private, semi-public chains. Loom helps

developers have smart contracts that can access more computing power.

How Loom Network works?

To understand how Loom Network works, we will look at concepts such as DAppChains, Loom

SDK, and Loom Token.

DAppChains

The first thing you need to understand is the fact that Loom Network makes it possible for

developers to create DAppChains and typical dApps. However, it can also function as an actual

blockchain. In short, Loom Network is a blockchain system that boasts all the qualities that most

blockchain networks aspire to – it’s scalable, very performance-oriented, and trustable.

The so-called DAppChains are blockchains that run in parallel with Ethereum smart contracts.

An interesting aspect of DAppChains is that they have native assets which can be transferred to

the Ethereum mainnet.

Loom SDK is another important component within the Loom Network. It allows developers to

build and deploy games and apps on DAppChains, but also to create their very own

DAppChain. To keep things as simple as possible, the Loom SDK component allows developers

to focus more on creating the actual apps instead of having to implement complex consensus

layers.

Loom Token

The Loom Token is the component that powers the network, and it’s used for all products and

services offered on the network. It’s an ERC-20 token, and it allows users to buy services and

products offered on the Loom Network.

Anytime a user needs to transfer an asset from one of the Loom DAppChains or Ethereum or

complete a transfer between two DAppChains, he or she will have to pay with LOOM tokens.

The minimum amount required is of 1 LOOM token.

At the time of writing, the LOOM token was ranked 109 th according to market cap with a

circulating supply of 648,415,613 out of a total supply of 1,000,000,000 LOOM. The distribution

break-up is as follows: 35% of the total supply is kept as a reserve fund within the company,10% goes to the team and advisors, and the rest remains in circulation.

Where can I buy LOOM tokens?

Even though LOOM Network is not exactly the most popular blockchain platform out there, the

LOOM token managed to attract enough attention to itself. The token can be purchased from a

wide range of crypto exchanges such as Coinbase Pro, Binance, Bittrex, Bithumb, Upbit, and

Kucoin.

A full list of exchanges can be found on the Markets section on the token’s official

CoinMarketCap page. Needless to say, the most popular trading pairs on almost all exchanges

are LOOM/BTC and LOOM/ETH.

Where can I store LOOM tokens?

Since LOOM is an ERC-20 token, you have plenty of good options out there. Some of the best

wallets for storing LOOM tokens are Trezor, Ledger Nano S, Jaxx, MyEtherWallet, Coinomi, and

MetaMask.

Conclusion

Loom Network is somewhat of an exception in the crypto sphere. For starters, the project did

not feature an ICO, and unlike most other products of this type, it didn’t publish its whitepaper.

Instead, the team behind Loom Network started building the product first.

Loom Network is a big thing for Ethereum, as it allows developers to run decentralized apps on

a large scale. It already has a few dApps built on it and, if things go as planned, it will most

probably help Ethereum become a lot more scalable.

Featured image: ETHNews.com

coindoo.com is author of this content, TheBitcoinNews.com is is not responsible for the content of external sites.

source: https://coindoo.com/loom-network-review-introduction-to-loom/

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