What Is the Next Wave of Development for Those Using Blockchain?
What is the next wave of development for the blockchain? Check out this post to learn more about the Loom network and how it will revolutionize the blockchain.
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With emerging technology, the biggest issue will be speed and scalability. Usually, technology needs to be understood; then, it’s made available for everyone to use. The perfect example of this happening in the crypto world is when the project known as CryptoKitties came about.
This is a game where people could buy, sell, collect, and breed digital cats. The game went viral and was popular enough that one “cat” brought around $100,000 at the time it sold. This game became so widespread it began using a high amount of Ethereum resources (as they built the game around the Ethereum blockchain) and clogged up the system.
The lesson from this — Ethereum was not ready for this kind of traffic and wasn't able to scale up and handle the load. There were many other projects built around Ethereum, and the problem also slowed those down. Here, everyone ended up suffering because of the lack of ability to adapt that they found within the Ethereum blockchain.
Now, let's enter the Loom Network, which claims that their network can handle a million crypto kitties and have no issue with handling the volume of transactions. They also say that they can do this with no hike in transaction fees or have any issues with speed. They claim to be the next generation blockchain platform for online games and social apps.
So, how will Loom solve these issues for Ethereum? Well, Loom functions on top of Ethereum (known as a layer 2 solution). How this works is that if someone were to build a blockchain game, like crypto kitties, he or she would build it on the Loom Network. This means that they would still be on Ethereum and receive the benefits (security) coming with this platform and still be on a side chain rather than on the main blockchain. This means that they would get their own blockchain (known as a DApp chain) to run their game on Ethereum.
Loom features a software developer’s kit. This kit makes it easy for a programmer to build a new game, or whatever else they might want to build, on this new platform. They primarily focus DApp chains on gaming and social media apps, but there are lots of other types of software they can build using this kit, and programmers can even use common languages, like Java, or C++, to build their projects.
This kit will take care of all the blockchain logic necessary to adopt the new programs to the Ethereum network. This will widen the demand for space and allow many more people to build programs using the more common programming languages. This will allow programmers to focus more on the new applications they are building rather than spending time adapting to a whole new programming language.
People have already seen the advantage of creating games on the Ethereum blockchain, and while it may be some time yet before the big boys will accept that the blockchain is the future of gaming, it won’t be long before blockchain technology is being used for practically everything digital.
So, what kind of programs will this most likely attract one might ask? Well, games and where you would need to have verifiable digital assets, like CryptoKitties, would be the main benefactors. Maybe an online card game, such as Magic the Gathering, where the verifiable ownership of the cards used to play the game is extremely important for players. Gamers spend millions of dollars each year investing both time and money into playing such games, so the advantage of using the blockchain to build these games on suddenly becomes quite clear. In 2017 alone, gaming like this brought in well over a $100 million, and with this kind of platform, it could easily double or even triple within the next five years.
Loom also has tokens, which is where we bring cryptocurrency into the mix. Currently, cryptocurrency investors buy tokens based on almost pure speculation. Some projects have different uses for their tokens, but, most of the time, you will need to spend those tokens in some way to get the value out of them. With Loom, you have to be holding at least one of their tokens to have a membership and to be able to use anything that is built on their platform.
To use Loom’s development kit, depending on what level of developer a person is, you will need to hold it somewhere between 10 and 100 tokens in order to get access to this important tool. This gives people a great incentive to hold on to their tokens, and they will do this for a whole other reason than speculation alone. People will hold on to these tokens no matter what the market is doing, because they will want to keep their membership current so they can take advantage of the development tools that come along with ownership. This will surely help guarantee stability and shows that someone over there has a lot of foresight.
Loom did not have an ICO, as they were privately funded, and they also don’t have a white paper. Loom has drawn some criticism for this, but some believe that this was all done on purpose as a way for Loom to stand out as their motto is, “we don’t write whitepapers, we ship product.” Most ICOs have whitepapers, making promises about the product they will develop, and it may or may not come true. Loom already has products, like DelegateCall and CryptoZombies, and instead of making promises, they simply deliver by bringing out minimum viable products and, then, building those up to full scale.
Compared to the whitepaper approach, this is the difference between talk and walk, and this way of doing things, should it catch on, will greatly enhance the space — it will give people something solid to invest in, instead of just asking people to have faith. And, that would be a significant advancement in the blockchain world.
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