The delicate balance of speed, decentralization, and security is what has become known in the blockchain world as the “scalability problem” (also known as the “scalability trilemma” or “ Blockchain Trilemma ”). The different consensus methods that various blockchains choose to integrate in their respective protocols can significantly affect the rate at which consensus can be achieved, but all consensus mechanisms take time. Middleware is often likened to “software glue.” Ethereum suffers from the same scalability problem that is quite common among many public blockchain networks - especially those that require multiple network nodes to verify each new block of transactions added to the blockchain. Loom originated from a desire to create a simple, fast, and scalable middleware platform that could enable developers and corporations to build applications on the Ethereum network more efficiently. The Loom Network is a Layer-2 solution built on top of Ethereum (a Layer-1 solution). For example, Bitcoin would be considered a Layer-1 system, while the Lightning Network would be considered a Layer-2 system. In the blockchain world, Layer 1 refers to the main underlying blockchain architecture, while Layer 2 refers to a network built on top of Layer 1.
This chosen delegate works much like a senator or other elected representative in a national political system, speaking and acting on behalf of the greater community that chose them.įurther, unlike most PoS models, Loom Network’s DPoS system is designed so its transaction finality is not dependent on all the network nodes competing for the chance to validate new blocks. In contrast to PoS, where nodes are usually awarded the ability to process new blocks based solely on the total amount each node stakes, the DPoS system allows users to delegate their own stake to a node of their choosing (known as a delegate ), and in essence elect the nodes they wish to validate new blocks. However, the distinctive characteristic of DPoS is that the system layers on a voting and delegation structure, where stakeholders don’t just stake their collateral, but also have an active voice in making consensus more efficient, transparent, and democratic. Much like the more common Proof-of-Stake (PoS) system, DPoS incentivizes users to confirm network data and ensure system security by staking collateral.
The Loom Network operates on a Delegated-Proof-of-Stake (DPoS) consensus mechanism. Loom Network Delegated Proof of Stake (DPoS).
#Loom network software
Loom Network’s Software Development Kit (SDK)ĭelegated-Proof-of-Stake (DPoS) Consensus Methodology The Loom Network realizes its vision of making decentralized applications (dApps) easily scalable on the Ethereum blockchain using the following tools: We discuss this sidechain architecture in greater detail below. To use LOOM, businesses not only pay subscription fees for the Loom Network Platform-as-a-Service (PaaS) model, but also pay transfer fees for moving assets between Loom Network sidechains and the main Ethereum blockchain. In order for clients and partners to access the Loom Network, they need to hold a minimum of one LOOM network token. The remaining 55% of the token supply is in public circulation. The company keeps 35% of the total supply in a reserve fund to ensure the ongoing development and longevity of the project, while 10% is held by team members and advisors. LOOM is an ERC-20 token with a fixed total supply of one billion. In 2018, Loom held an Initial Coin Offering (ICO), alongside a private sale of its native utility token LOOM, which raised $45 million U.S. The Loom Network’s headquarters have been based in Bangkok, Thailand since the project’s launch in 2017. Origin of the Loom Network and the LOOM Token.
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