In the last blog, we talked about Ethereum’s scaling issue and how Plasma Cash is being developed as a solution to this. In the race to solve this scaling problem, there are many contenders, however. The blockchain community is full of innovators striving to provide solutions that will speed up blockchain transactions while simultaneously making them less expensive and more secure. There’s plenty of incentive for those with vision.
One of these companies is the Loom Network. Founded by Matthew Campbell, Luke Zhang, and James Martin Duffy in 2017, the Loom Network raised $25 million in private token sales in order to meet its goal of increasing the capacity of Ethereum. Michael Cullinan, the head of business development at the Loom Network, recently described his company as “a developer platform to make it simple to make highly-scalable apps on the blockchain.”
How Does The Loom Network Work?
The Loom Network works on behalf of new developers. It creates individualized blockchains for new programs in order to allow Solidity-based dApps to run. Each new blockchain, or sidechain, is made specifically for a dApp and will connect to the Ethereum blockchain. This will allow the network to be faster, more stable and scalable enough to support large social apps and games like World of Warcraft.
What is a sidechain? Here’s a good definition: “[S]idechaining is any mechanism that allows tokens from one blockchain to be securely used within a completely separate blockchain but still moved back to the original chain if necessary.”
Sidechains are not a new idea. They’ve been floated for years as a way of addressing problems with Bitcoin. Loom Network’s sidechains are designed to lift capacity from Ethereum, and they will be centralized under the Loom Network’s control. Unfortunately, the actions that occur off the main Ethereum network will not be as secure as those that occur on. Cullinan argues that not all actions require the same security, though. “Commenting or changing a profile picture doesn’t necessarily require the security of the ethereum mainchain,” Cullinan said.
Developers are free to decide how much of the app data they want to route over the main network in order to maintain security. The Loom Network intends to open its network eventually and decentralize it more. Currently, the Loom Network’s platform is closed, only available to select developers who want to try to build apps while it is in beta testing. Cullinan expects that the code will be open sourced soon so that more developers can check it for bugs.
Whether it’s via Plasma Cash or the Loom Network, Ethereum looks to be both more useful and more user-friendly in the near future. That’s good news for investors.