steven82
about 1 month ago  Karma: 10
How does LOOM work, there are no fees as with EOS?

Thanks!

en
zombiebattleground
#loom
#EOS
steven82
about 1 month ago  Karma: 10
How does LOOM work, there are no fees as with EOS?

Thanks!

en
zombiebattleground
#loom
#EOS

ONE ANSWER
sachushajiabraham
28 days ago Karma: 3

As you may know, Ethereum uses proof of work, which is really expensive in case of using large amounts of electricity and lesser transaction confirmation rate. It can process only about 15 transaction per second which is clearly not feasible for real-world applications. So in order to mitigate that, Loom promotes the use of sidechains.

A sidechain is a separate blockchain that is attached to its parent blockchain using a two-way peg. The two-way peg enables interchangeability of assets at a predetermined rate between the parent blockchain and the sidechain. The original blockchain is usually referred to as the ‘main chain’ and all additional blockchains are referred to as ‘sidechains’.

So what loom does is that it uses plasma cash smart contracts which can hold the token in the mainnet while it can be used in the sidechain and do whatever the user wishes or even transfer it to other users. The sidechain has no transaction fees when compared to the mainnet, thus it can be used to execute complex calculations or token transfers within the sidechain. When the user wants to redeem the tokens from sidechain, he can initiate a plasma exit too transfer token from sidechain to the mainnet.

The Advantages of using loom sidechains are
- You can build decentralised apps over ethereum with no transaction fees but also with the same security as running in mainnet.
- The transactions can be confirmed instantly as sidechain in loom uses DPOS consensus mechanisms.
- You can scale your Dapp and even build real-world decentralised games with similar user experience as in traditional applications.

As you may know, Ethereum uses proof of work, which is really expensive in case of using large amounts of electricity and lesser transaction confirmation rate. It can process only about 15 transaction per second which is clearly not feasible for real-world applications. So in order to mitigate that, Loom promotes the use of sidechains.

A sidechain is a separate blockchain that is attached to its parent blockchain using a two-way peg. The two-way peg enables interchangeability of assets at a predetermined rate between the parent blockchain and the sidechain. The original blockchain is usually referred to as the ‘main chain’ and all additional blockchains are referred to as ‘sidechains’.

So what loom does is that it uses plasma cash smart contracts which can hold the token in the mainnet while it can be used in the sidechain and do whatever the user wishes or even transfer it to other users. The sidechain has no transaction fees when compared to the mainnet, thus it can be used to execute complex calculations or token transfers within the sidechain. When the user wants to redeem the tokens from sidechain, he can initiate a plasma exit too transfer token from sidechain to the mainnet.

The Advantages of using loom sidechains are
- You can build decentralised apps over ethereum with no transaction fees but also with the same security as running in mainnet.
- The transactions can be confirmed instantly as sidechain in loom uses DPOS consensus mechanisms.
- You can scale your Dapp and even build real-world decentralised games with similar user experience as in traditional applications.

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