The Ethereum network has opened doors for developers by allowing them to use their coding skills and build blockchain-based applications that run on smart contracts. It’s the beginning of the new age of the internet, popularly known as Web3 where DAPPS has a bigger role to play in transforming the digital space by securing users’ data, privacy & ownership.
The technology is picking pace but there’s still a lot to be done to bring it mainstream. One of the reasons why it is failing to reach the masses is because of its complexity. Loom network solves this issue for both developers & the users. It allows users to access their favourite app on multiple blockchains while maintaining scalability across the platforms.
Does the Loom network have the potential to drive crypto adoption & attract blockchain developers at the same time? Let’s find out in this review –
Table of Contents
What is LOOM Network?
Launched in 2018, Loom network is a multichain interoperable platform connected to popular blockchains like Ethereum, Binance Smart Chain, COSMOS & Tron. With its simple, easy to use API, developers can deploy their code on the Basechain (mainnet) which helps establish the connectivity of DAPPS across the networks while maintaining scalability and usability.
LOOM network is Ethereum compatible
What is BaseChain?
BaseChain is Loom’s mainnet. It is EVM compatible, interoperable sidechain that acts as a bridge between multiple chains and deploys DPoS consensus mechanism which is further secured by 21+ validators and thousands of individual token delegators.
Basechain supports projects with multiple use-case including DeFi, virtual reality, supply chain management or gaming. The network is built for developers, by developers.
A look into Crypto Zombies:
Crypto Zombies is the learning wing of Loom’s network. It is the leading school helping students with learning to build Ethereum dapps. It teaches students how to code in Solidity without them having prior knowledge of the language.
LOOM is the native ERC20 token of the network. The token has the following utilities –
- Secure the network
- Hosting Fees
- Staking Rewards
The token is a proof-of-stake token which is used to secure the network and also used to pay for the gas fee on Basechain. The developers pay in LOOM token for hosting DAPP on the network.
Developers pay a flat monthly fee to host their DAPP on LOOM, therefore users don’t have to pay for the transaction costs
Users can earn up to 20% staking rewards by staking LOOM tokens on the network. Check the detailed post to learn more about LOOM staking on Basechain. Like Fantom (FTM Token), a minimum of 1 LOOM token is required for staking on the network.
The total supply of LOOM token is 1 Billion
LOOM Network Benefits:
Zero Transaction Fee:
LOOM network doesn’t charge transaction fees to the users, that’s because the developers pay for the hosting fee on the network.
BaseChain is an interoperable sidechain with the ability to connect multiple blockchains without compromising the scalability and usability of DAPPS.
Ethereum is the mother of popular DAPPS built on the blockchain. Fortunately, LOOM network is Ethereum compatible which means any app built on Ethereum can also run on its network, making it a desirable network when it comes to cross-chain connectivity.
LOOM Network Drawbacks:
New blockchains like Avalanche (AVAX) or Fantom (FTM) are already EVM compatible and offer low transaction costs compared to LOOM network. This is concerning for LOOM since its USP has been deteriorated by the new players having in-built features.
Poor token performance:
LOOM token looked promising. However, it’s unable to match the competitor’s price action. Projects like Polygon (MATIC) are already ahead of the race and investors are slowly losing interest in the token.
LOOM Token Price:
Please check the latest price of LOOM token, shared below –
LOOM Token Price Prediction:
LOOM mainnet was launched way back in 2018. Soon after the launch, the token hit an all-time high of $0.25 before crashing down to $0.05 in the market crash. At the time of writing, the crypto industry is witnessing the worst market crash ever including the failure of UST stablecoin in the Terra LUNA crash.
The condition is bad and the same is reflected in the price level of LOOM token. It is trading in the range between $0.03 – $0.05 and is stable in the region. Though the project has potential and is delivering value, it is still behind the other layer 2 blockchains like Polygon (MATIC) which was launched years after its launch.
On the bright side, the project is genuine and works as promised by the team. It is here to stay but the price may still range around $0.30 once the bull market resume.
Where to buy LOOM token?
LOOM token can be purchased from the leading crypto exchanges like Binance & Coinbase. It is an ERC20 token and can also be purchased from DEXes like Uniswap or SushiSwap exchange.
This completes my review of LOOM network. In the next post, I will talk about Optimism crypto & how to add a blockchain network to Metamask wallet. If you’re a fan of blockchain technology then do share this post on your social handles and educate everyone around you. Remember to subscribe to my YouTube channel for more informative content, released every week.
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.