Interoperability seems to be the keyword for many blockchain platforms in 2019. Both Loom Network and Cosmos seem to be aware of that fact, which is why they've decided to join forces in order to solve today's most common blockchain obstacles.
What Is PlasmaChain?
PlasmaChain is the Loom Network's Delegated Proof of Stake (DPoS) sidechain that bridges various sidechains with Ethereum. In translation; many Ethereum DApps choose to solve Ethereum's scalability issues by delegating some of their functions to sidechains. This helps them sustain more transactions without sacrificing security.
However, there needs to be a bridge between the Ethereum blockchain and these sidechains, and that's where PlasmaChain comes into play. PlasmaChain, aside from supporting Ethereum Virtual Machine (EVM) smart contracts, allows token holders to transfer tokens from sidechains to Ethereum, and vice versa. Additionally, Loom Network pairs its PlasmaChain with Plasma Cash, which enables users to carry out their payments quickly and securely.
What Is CosmosHub?
CosmosHub’s goal is to build a scalable, secure and interoperable ecosystem of interconnected blockchains. The platform plans to launch its mainnet this quarter, together with its native Decentralized Exchange (DEX).
CosmosHub is well paired with Cosmos SDK. The SDK is perfect for developers that want to build their custom blockchains by using Cosmos pre-built modules, or by effectively implementing their modules. Users can also connect their custom blockchains with the Cosmos ecosystem and enjoy the benefits that come with it.
Benefits For Token Holders
Both of these platforms have their own tokens; Loom has LOOM, and Cosmos has ATOM. LOOM token holders will have more options when it comes to utilizing their tokens because now, ATOM developers will be able to offer their content to LOOM holders. In short, LOOM holders will be able to use their tokens more broadly and interact with Cosmos blockchains and the content that dwells on these blockchains.
ATOM holders will be able to swap their tokens for LOOMs and ETHs on the Loom platform. And, like LOOM holders, ATOM token holders will be able to utilize their tokens on the Loom network.
Benefits For Validators
ATOM holders will pay gas fees when transferring ATOMs from Cosmos to Loom. A proportion of the fees generated from these transactions will be distributed among Loom validators. Loom also plans to develop specific doorways for ATOM/LOOM and ATOM/ETH transactions, allowing ATOM holders to exchange tokens with ease.
Cosmos validators will use Tendermint to combine their services with Loom much more efficiently. Furthermore, Cosmos can expect an influx of Loom users, which means more opportunities for Cosmos validators and developers.
Benefits For Developers
Loom smart contracts will be able to verify and transfer crypto assets to Ethereum and Cosmos automatically. This is excellent news for Loom developers because now, their assets will be tradable not just on Loom and Ethereum, but also on Cosmos.
As of now, Cosmos doesn't support smart contracts. However, Cosmos developers will be able to utilize Loom Plasmachain to interact with the Loom Network. This means that all Cosmos developers will be able to offer their content to Loom users.