Blockchain networks will be able to gain the same prominence as Web 2.0 only when real world utility apps can be created without issues such as scalability and transaction delays. In this regard, Ethereum network creator Vitalik Buterin has proposed the Casper and Plasma upgrade. However, it may take several months before such solutions may turn into reality.
In the past two months, several projects have migrated from Ethereum to other networks because of these issues. A tech startup named Loom Network has launched a new development platform (Platform-as-a-Service) to provide an answer to these critical problems.
The Loom Network enables DApps on its platform to run on their own sidechain. The company has coined the word DAppChains to refer to the components that make up the platform over which the DApps are deployed. According to Loom Network, a DAppChain DAppChains are full-featured blockchains that are built to run in parallel to Ethereum Smart Contracts. They’re an advanced form of Ethereum sidechains optimized for scaling data rather than financial transactions. Only data that need to be secured runs on the Ethereum mainnet, while the rest of the apps run off-chain.
How sidechains work?
Sidechains operate independent from the mainchain. Additionally, each sidechain can follow different set of rules. Therefore, sidechains can be optimized to run at extremely high speeds, while critical data can be protected by the mainchain. By running sidechains on Loom Network’s platform, the issue of scalability is resolved. However, this raises a doubt as to whether Loom Network’s platform is centralized. James Duffy, the co-founder of Loom Network, has clarified that a sidechain will remain under the control of the DApp owner and is not centralized.
Additionally, Loom Networks also launched a Q&A website called DelegateCall. The blockchain-based version of StackOverflow is intended to clear doubts of developers. DelegateCall is a DApp chain, mainly launched as a proof case of the system.
Similar to StackOverflow, DelegateCall will use reputation (called as “karma”) points. Additionally, DelegateCall users will be able to convert their karma points into tokens.
Loom Network stated
“[….] on DelegateCall these karma points can be redeemed for a tradable ERC-20 “DelegateCall token” on Ethereum mainnet, allowing users to earn rewards proportional to their contributions to the site.”
However, the value of DelegateCall tokens is determined by the market force. The main objective of DelegateCall is to clear doubts regarding the Loom Network. Furthermore, DelegateCall portrays how Loom Network SDK can be used. Loom Network aims to have thousands of these DApps run on their platform.