Loom Network is the first production-ready platform that could increase the capacity of Ethereum network and leapfrog ongoing efforts such as Raiden Network and Plasma. However, the security drawback is because it is centralized.
Loom Network has released what could be a production-ready solution to Ethereum’s current scaling problems. It allows the deployment of scalable Ethereum apps on the Ethereum network.
However, Loom Network head of business development Michael Cullinan told CoinDesk that it does not have the same level of security as the main Ethereum network.
Ethereum-based blockchain apps
Known as “dappchains” and acts as mini blockchains. Loom Network, which is a platform to make it simple to make highly-scalable apps on the blockchain, differs from other scaling projects. First, it dedicated to coming up with solutions for scaling or lifting capacity from the main Ethereum chain. The Network spins a new blockchain when a developer comes up with a new program. However the new blockchain connects to the Ethereum blockchain.
The new app works more like a side chain that ties different features to the main chain or network. Right now, some of the apps on the Loom network include DelegateCall. It works like StackOverflow, a popular developer question-and-answer forum. However, it is in close beta, only open to a few select Ethereum developers to test the network by building apps. The team will then open-source the code to allow more developers to check for bugs.
Nevertheless, the project is an example of how centralization can help spin up Ethereum-based blockchain apps easily.
However, these sidechains are centralized under the Loom Network’s control and thus with compromises in security. This is because not all actions or communication is forward to the main Ethereum blockchain. Loom tracks actions that aren’t transmitting to the main network. This could change in future as Loom will open the network over time to try and decentralize it further. It is similar to Bitcoin sidechain project RSK and CryptoKitties that are centralized but hope to decentralize later.
For instance, commenting on a profile picture does not necessarily require security level of the main chain according to Cullinan speaking to CoinDesk. Thus, he believes transactions are different and should be treating differently.
Developers have the choice to make to determine which data should go to the main Ethereum chain.