07 Nov Loom Network
Loom Network (LOOM): Frontline of the Mass Adoption
Published: 7 November 2018
Last month ridiculous news hit Reddit’s front page with more than 64k upvotes. An NBA2k (a basketball simulator) player was permanently banned because of ‘auction house sniping’.
Aside from the actual basketball games, NBA2k allows you to collect virtual cards (VC) that you can sell or buy with other players on the built-in marketplace. In this case, the original poster was banned for buying underpriced cards and reselling them at a much higher price.
Hey, isn’t it what we all do in the cryptocurrency space?
In the end, OP has lost not only his cards but also access to the game. That’s nuts given that auction house sniping is not something that is illegal.
NBA2k had a different opinion and this is what backfired hard on them. The fact that the post has been upvoted more than 64k times statistically means that hundreds of thousands of Reddit users have looked into the thread.
Yet another perm ban has upset many for a reason. The gaming community simply hates the fact that companies behind games such as 2k can ban you anytime with no specific reason.
One click on their end and you are done. Your hard earned characters, items and cards gone. Not to mention that $100 you spent just to be able to play the game itself.
There are millions of players out there who invest their time and hard earned money in virtual goods. Alas, each of them faces the same issue of a closed game ecosystem.
Bitcoin allows you to create a wallet and store money with no questions asked and with no turn-off button owned by anyone. Ethereum takes it to another level allowing users to store any type of value that can be programmed. This includes virtual goods such as cards, items or your favorite spaceship.
This month’s pick allows you to truly own the items of the game with the help of Ethereum, yet this is just a glimpse of what they have to offer in the grander scheme of things.
An honest question: Why would anyone use the new Tinder on blockchain rather than the original one, which has a large user base all over the world and has no gas fees whatsoever?
The fact that the new Tinder would be decentralized is not enough to incentivize users outside of the crypto-circle.
In order for decentralized apps to overtake the centralized ones, they have to offer something much more than fancy, geeky slang daily users don’t care about.
Do you think your sexy neighbor Jessica cares about stuff like the storage capacity of Snapchat or does she just want to send nudes to her bf NOW?
Same with crypto. Most people don’t care about stuff reserved for geeks. Decentralized, low fees, transparent ecosystem…blah
Ethereum – even though it is the leading ecosystem in the crypto space it is still far from perfect. As of the moment of this writing, it is a good place to store value and create smart contracts, but we cannot bind it with every action we would like to take in dApps.
Users of the existing decentralized exchanges, which are also dApps, surely know what we are talking about. The need for confirming each and every step within the metamask pop-up window and paying gas fees is just a pain in the ass from the user-experience perspective.
You need to be highly motivated to perform dApp actions which rely directly on Ethereum. In today’s society where everything happens instantly within a screen tap, we won’t reach wider adoption that way.Loom Network provides a solution to this problem by offering developers the ability to build on Loom’s SDK.
SDK stands for Software Development Kit. A Loom SDK allows developers to quickly generate sidechain for their own dApp that takes the burden off Ethereum’s shoulders.
Think of a dirt road as Ethereum. Dirt is the inseparable element of our planet earth – a fundamental part of it. You can drive a car (dApp) on it but we all know it is uncomfortable and slow. Loom Network allows developers to cover the dirt with asphalt for a better performance and ease of use for their cars. Still, the new layer of the road is compatible with its underlying foundation.
Loom’s SDK allows developers to immediately bring the performance of their apps to the level of the centralized ones without the worry of Ethereum imperfections. A ready to build upon blockchain environment. Loom Network closes the gap that not so recently was hard to overcome.
Why is Loom SDK such a big deal?
Dear readers, we know this techie stuff might sound boring but hear us out. It is the nerds who are making it to the top Forbes list these days. Today we have an unusual opportunity to invest in a project that creates a better environment for nerd apps.
In the end, it is the developers that stand behind the success of each cryptocurrency you invest in. This 24-second video is a must-see in that regard:
That sweaty guy is Steve Ballmer, an ex CEO of Microsoft worth currently more than $42.2bln. He certainly knows what is he talking about.
By creating an easy and friendly environment for developers that already works, Loom Network has a high chance to become very lucrative in the future.
It is like investing in a company that has just invented excavators during the gold rush where everyone else is still using basic shovels.
Loom Network is far ahead of its competition
What really surprised us when we first discovered Loom Network is the fact that they do not have a whitepaper.
As Loom’s Co-Founder James Martin Duffy says – Talk is Cheap.
Instead of writing empty words they focus on the products first.
Bold move. And boy, they do constantly deliver.
As we spoke before, the developers are the core of their business. We are really happy to see Loom Network taking action to onboard new developers rather than just drinking cocktails from ICO money and waiting for devs to come on their own.
Launched in early 2018, CryptoZombies is a free coding school for everyone willing to build their first dApp on Ethereum. It is not another boring text tutorial, but rich in graphics guides that walk you through the process of how to build your first game on Ethereum.
Loom Network claims that to date more than 300,000 students have enrolled, which is pretty impressive. Whilst this school might not be the most advanced out there, it definitely sparks the interest of coding with Loom in hundreds of young minds all over the world.
These are not just empty words. It is already happening.
A photo from a community event at @wethinkcode
Lookin good! @blockchain_mi
We are excited to see the outcome of this venture, as this approach is definitely a long-term game that will definitely pay off in the future. Running a school that teaches how to use your platform is a way to dominate a niche.
Take a look at Google. They offer tons of free tutorials and classes on how to build an app for Android. By doing so they basically grow herds of developers that will build apps for their platform.
This technique brings a steady stream of new apps that share their revenue with Google.
The guys at Loom Network are successfully averaging this dev onboarding model.
Aside from Ethereum itself, there is no other crypto project we could find that could brag with such big student numbers.
Although SDK allows developers to build anything they want upon it, Loom Network believes games will be the first to pop out on their platform, which will spark the wide adoption of crypto.
While apps such as Tinder or Uber are very difficult to dethrone from their top app store positions, games have a unique advantage of competitiveness.
For dating we might need one, maybe two, apps installed as there is basically no user base. Same with Uber. Once installed you stop looking for alternatives. That is why it is so hard for other companies to get a piece of this niche.
When it comes to games we can have dozens of them in our library and still look out for more. Loom Network called their school Crypto Zombies for a reason. They want the developers to focus on creating games first, as they have the highest chance of succeeding.
Let’s assume that within a year or two from now when thousands of devs play around with Loom’s SDK there is a high possibility that someone comes up with another Minecraft-type success.
And hey, if you own a piece of the platform that this successful game was built upon your investment succeeds along with it.
Some companies would stop there and focus on developing the core of their business which in this case is Loom’s SDK. Crypto Zombies coding school is the cherry on the top, but there is also the icing that gives the Loom cake a naturally sweet flavour for its investors.
Loom Network is actively in the process of creating the first game built on their own SDK to show everyone how it should be done. The game is called Zombie Battleground and it perfectly fits the back-end of their operations.
Zombie Battleground Alpha Version – it works!
Zombie Battleground has the same concept of collectible cards as Hearthstone. This game type is yuge. Hearthstone has reported more than 70 mln users as of May 2017. We predict Zombie Battleground has a chance to take a piece of this niche for itself.
P.S. Take a look at the amount of UNIQUE graphics on the cards in this game. Although the UX on this page needs to be more polished, it requires a hell of a lot of work to produce this many unique cards and character abilities.
That’s a smart move, creating a fully playable game on the blockchain in the same zombie theme as they teach in their coding school. Once fully released, everyone interested in developing a game or some other app with Loom will know how it is done from the beginning to the very end.
Now, let’s change shift from the developer-Loom-investor perspective to the gamer point of view.
Aside from the simple fact that they can play a brand new game, what will they get from that?
In the prologue, we spoke about the NBA2k player who got completely banned and lost not only his achievements and VCs but also access to the game.
We know such issues are pretty rare, but still, when you invest your time and money into stock or game items it is your property and no one should limit access to it.
Look at the centralized exchanges where people have to put their money into one big fragile basket in order to trade. Hacks and breaches tend to happen. So do game bans or complete server shut-downs. In both cases, users are left with nothing.
Decentralized exchanges allow you to trade straight from your wallet. No one has direct access to your funds and if the exchange you trade on goes down for any reason then, well, your funds are still on your wallet.
Your wallet is a separate entity.
Loom aims to achieve the same with games. Imagine you could opt-in or opt-out to the game anytime with your precious items/achievements stored in a wallet-type safe account.
In case of a perm ban from the game you still own hard-earned game items on your wallet which you can sell on external marketplaces.
But what about when the whole game shuts down for whatever reason and the community is left with useless and therefore worthless game items assigned to their wallets?
If hundreds of thousands of users are left on the ice, then you can be sure some other dev studio will quickly recreate that game on the blockchain enabling all abandoned users to opt-in to a similar game environment together with their worthy items.
A new set of rules comes to the gaming industry. Developers will do their best to keep a healthy and satisfied user base. If devs do something against the community such as unwanted changes or issue a series of unfounded bans they can expect users to opt-out, sell their items and move on.
Games can become a self-living organism with build-in marketplaces and even owned inside cryptocurrencies that you can easily exchange for ETH or DAI.
Currently, that is not an option as game studios keep the game ecosystems closed for their short-term profits. That is understandable, as games are businesses out to make a profit like any other business. But once people fully realize the potential of gaming on the blockchain it will be the devs who need to adapt to the new rules, not the end-consumers.
This and many undiscovered aspects of a game on the blockchain are yet to come and Loom Network enables exactly that. Even those unfamiliar with crypto will be able to play games on the blockchain and if they want to sell their items, they can get their feet wet with crypto.
Hey, I can sell my Fortnite skin for 0.0017ETH and exchange that for USD if I want to.
How awesome does that sound?
With all that being said, Loom Network stands on the frontline of crypto mass adoption.
No whitepaper – huh?
Worth mentioning one more time: Loom Network does not have a whitepaper. Instead, they focus on delivering SDK, Zombie Coding School, and Battleground right away.
If you are still looking for their plans, progress, and finished projects it all can be found on their medium blog.
We must admit that their writing is far more engaging than any other project we have covered up to date. The human-to-human approach is a golden way to attract a high-quality audience.
Loom Network successfully leverages this technique from which we, early investors, can benefit.
If you love the way we write here, you will definitely love their blog as well. Warning! You can easily lose yourself in the amount of good content they offer.
At the moment of writing this report, Loom Network claims they have written more than 50,000 words in all of their blog posts…
No whitepaper just got justified. Hats off, really – especially to James Martin Duffy and Matthew Campbell for their contribution. How about we place these two guys under our x-ray check?
The Zombie Team
After discovering all the stuff you have read above we started to wonder if the people behind Loom Network ever sleep? Given the amount of content they produce along with products, meetups, and interviews – we don’t think so.
The first to go through our x-ray will be the CEO & Cofounder – Matthew Campbell.
Previously he worked in the tech sector for companies such as Gucci, Bloomberg and DigitalOcean just to name a few. Summarizing his accomplishments is not an easy task, but what he did for the past 20 years was basically improve the speed of the services he worked for and/or bring their existing infrastructures to a high performing standard.
Matthew even wrote a book for developers on scaling microservices. Just to give you a sneak preview of his work, here is the first chapter. Pretty impressive, as he not only knows his shit but also is able to express his thoughts.
A coder and writer in one – like one of these rare pepe memes. Now we know Matt is able to write engaging content, even about geeky Loom Network. Keep it up!
Give some claps to Co-Founder and CMO James Martin Duffy, a guy with a rich dev and entrepreneurial background.
Possessing quite a long list of accomplishments on LinkedIn we decided to pick the ones that deserve the most spotlight.
In 2013 he started a herbal supplement brand which he built from a zero to 7 figure revenue in under 3 years.
We checked his brand Auragin on Amazon for you. Everything checks out – with more than 800 customer reviews averaging at 4 stars his company surely brings in a steady income.
Why is this important?
Firstly, it shows that James is a true entrepreneur who knows how to connect the dots to make a profit. Secondly, it took him 3 years to build the brand to what it is today. He knows that the long-term game pays off and we expect that he envisions the same approach with Loom as well.
James has also been invested in Bitcoin since 2013. We think he still fits into the early adopter category. After discovering Ethereum he wrote a trading bot that returned over 10% per month. Although we could not find any specifics around this project, his current position at Loom Network assures us that James is capable of programming such things.
Oh, we almost forgot to mention that his story-telling abilities are on the same level as Matthews!
These two are the face of the Loom Network in whom we entrust our investment. Their friendly and human approach to investors fits perfectly into the gaming niche they focus on, which only increases the chance of Loom’s success.
Plasma allows for a safe transfer of i.e. game items between sidechains (which Loom’s SDK offers) and Ethereum. He is working more behind the scenes, but without his input Loom definitely would not be what it is today.
How does Loom Network plan to make money?
Devs, devs, devs…yeah!
If you didn’t jump straight to this section you already know that Loom is acting as a black hole for developers. Loom sucks them in, but unlike black holes it lets them out armored with knowledge on how to build decentralized applications using Loom’s SDK.
Initially it is the developers which Loom Network plans to make money from. Devs, in order to run a dApp, need to lock a minimum number of $LOOM. By doing so, the dApp users won’t have to pay any gas costs. The deposited tokens are deducted on-the-go based on dApp’s usage.
This model is not much different today than the developers who pay companies such as Amazon to run their apps. Loom Network aims to be not only much cheaper but also function in a decentralized way.
Aside from the fact that $LOOM is a utility token, it still represents a share of the Loom Network platform which is no different than buying a share of a company on the traditional stock market.
While Loom might figure out more use cases for its token in the future, our primary reason for investing in this project is that in the future every reputable investor will want to have a piece of Loom Network in their portfolio.
These days $LOOM trades at around $0,10 per token. That’s a good buy-in window that won’t last forever with that magnitude of operation!
Founded barely a year ago, Loom Network already possess a large magnitude of operations. Compared to the majority of projects out there, and with nothing but wallet_update_1.6.2 on their roadmap, Loom is far ahead of any competition.
Loom Network is backed by TechStars, a Venture Capital Fund where companies such as DigitalOcean are spawned. That’s another important green tick on our checklist.
Having such a big player behind your back not only assures our investment is safe in terms of potential exit scams that are pretty common in crypto, but also Loom Network has immediate access to a wide network of well-connected people with money. That’s a bonus any way you look at it.
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