Loom Network (OLD)

Understanding Loom Network (OLD) (LOOMOLD): A Comprehensive Guide

What is Loom Network (OLD) (LOOMOLD)?

Loom Network (OLD) (LOOMOLD) refers to the original ERC-20 token of the Loom Network platform before its significant transformation. The Loom Network was initially launched as a Layer 2 scaling solution for Ethereum, designed to enable developers to run large-scale applications and games on the blockchain. The LOOMOLD token served as the native utility token within this ecosystem before the project underwent restructuring.

How Does Loom Network (OLD) (LOOMOLD) Work?

The original Loom Network (LOOMOLD) functioned as a platform for building decentralized applications (dApps) with a focus on scalability. It operated through a system of DAppChains, which were application-specific sidechains that ran alongside the Ethereum mainnet. These sidechains allowed for faster transactions and lower fees while maintaining connection to Ethereum's security.

LOOMOLD tokens facilitated transactions within this ecosystem and served as a means to deploy and interact with dApps on the platform. The network utilized Delegated Proof of Stake (DPoS) as its consensus mechanism, allowing for higher transaction throughput compared to Ethereum's main chain.

Staking and Validation in Loom Network (OLD)

Loom Network (OLD) did offer staking opportunities through its DPoS consensus mechanism. LOOMOLD token holders could stake their tokens to vote for validators or become validators themselves. Validators were responsible for processing transactions and maintaining the network's security, receiving LOOMOLD rewards for their service.

The staking process involved:

• Token holders delegating their LOOMOLD to trusted validators
• Validators running nodes to process transactions
• Rewards being distributed proportionally to stake amount

Mining on Loom Network (OLD)

Traditional mining (Proof of Work) was not part of the Loom Network (LOOMOLD) ecosystem. Instead of mining, the network used the aforementioned DPoS system where block producers (validators) were elected by token holders to confirm transactions. This approach consumed significantly less energy compared to traditional mining operations while still securing the network.

What is Loom Network (OLD) (LOOMOLD) Used For?

LOOMOLD tokens served multiple purposes within the original Loom Network ecosystem:

• Platform fees for deploying dApps on DAppChains
• Staking to participate in network security
• Voting rights for network governance decisions
• Transfer of assets between Ethereum and Loom DAppChains
• Access to premium features and services within the ecosystem

The token was particularly valuable for developers building gaming and social applications that required high throughput and low latency.

LOOMOLD Token Distribution

When Loom Network launched, LOOMOLD tokens were distributed through a token sale in early 2018. The distribution generally included:

• A portion allocated to the initial token sale participants
• Team and advisor allocations (typically vested over time)
• Reserve for ecosystem development and partnerships
• Community incentives and marketing initiatives

The total supply of LOOMOLD was capped at 1 billion tokens, making it a deflationary asset with predetermined scarcity.

Transition from LOOMOLD and Current Status

It's important to note that the original Loom Network underwent significant changes. The project later rebranded and refocused its direction, leading to the distinction between Loom Network (OLD) tokens (LOOMOLD) and the new iteration. Users who held the original tokens may have been offered migration options to newer tokens, depending on the project's transition plan.

Trading LOOMOLD with Cryptohopper

Despite being an older version of the token, traders interested in LOOMOLD can still trade it on supported exchanges using automated trading solutions like Cryptohopper. Cryptohopper's automated trading bot allows users to implement sophisticated trading strategies for various cryptocurrencies including Loom Network (OLD) (LOOMOLD). This provides traders with the ability to take advantage of market movements without constant manual monitoring.

Whether you're looking to diversify your portfolio with LOOMOLD or trade it actively for potential profits, Cryptohopper's platform offers the tools to execute your strategy efficiently across any exchange where the token is listed.

Final Thoughts on Loom Network (OLD) (LOOMOLD)

While LOOMOLD represents an earlier version of the Loom Network ecosystem, understanding its history and functionality provides valuable context for blockchain enthusiasts and investors. The project was one of the early Layer 2 scaling solutions for Ethereum, pioneering concepts that have influenced many subsequent blockchain scaling projects.

Before trading or investing in LOOMOLD, it's advisable to research the current status of the token and any migration programs that may have been implemented during the transition to newer versions of the project.