Introducing StakeWith.Us and a Peek into Loom Network’s PlasmaChain
MW Partners is dedicated to supporting projects that truly make a difference in accelerating blockchain adoption. We prefer to have an active, hands-on approach in providing value to projects that we have invested in — which is why we decided to launch StakeWith.Us, a secure Staking-as-a-Service provider, to bootstrap their networks.
Loom Network is a Platform as a Service built on top of Ethereum that allows developers to run large-scale decentralized applications. This lets developers build DApps with the trust and security of the world’s most secure public blockchain, along with the computing resources necessary to run commercial-scale services. Loom aims to be the tokenized application protocol of the new decentralized web. Recently, Loom Network announced that they will be supporting an integration with Cosmos Network, which marks the start of their multi-chain integration with other blockchains through PlasmaChain — We are so excited for this!
While Loom Network has been focusing a lot on educational, gaming and social applications, such as DelegateCall (a Quora-like forum), CryptoZombies (an interactive Solidity coding school) and Zombie Battleground (the first online trading card game to run completely on the blockchain), we firmly believe that they have a far bigger addressable market. In fact, the recent publication by Lee Bailey (from Shipchain) showcased a potential use case for a traditional industry— deploying a fully integrated supply chain solution on Loom Network.
We are very thankful for the support we have received from delegators over the past months after the initial set of validators for Loom Network was announced. We have been busy at work for the past few months getting our validation setup as secure as possible.
If you are a fellow Loom Network fan like us (yay!) and have Loom tokens for delegation, please pledge your support here and we will be in touch with you shortly.
For clarity, delegation refers to the act of assigning authority to others. In the context of the DPoS PlasmaChain, delegators are important stakeholders who are able to delegate their voting rights to any validators. Validators are nodes on the PlasmaChain that propose blocks, verify transactions and participate in network governance — each validator node is responsible for keeping the network honest. The requirements and responsibilities of a validator node can be found here.
How PlasmaChain Works
Without further ado, let’s take a look at how Loom Network’s PlasmaChain works!
We can break down the overall architecture of PlasmaChain into several sections:
- Depositing ERC20 Loom tokens into PlasmaChain Contract on Ethereum Mainnet:
As validation will be taking place on Loom Network’s PlasmaChain, ERC20 Loom tokens has to be transferred from the Ethereum Mainnet onto the PlasmaChain (which is based on Tendermint) before you can vote and delegate. As such, you will be required to create a Tendermint account and map it with an existing Ethereum address via Loom Network’s PlasmaChain Dashboard which will be launching soon.
The PlasmaChain Contract serves as a gatekeeper to ensure that the right amount of Loom tokens are available for delegators to utilize on the PlasmaChain.
- Transfer Gateway picks up deposit event and pushes instruction for Coin Contract to mint Loom tokens on PlasmaChain:
A deposit event will be emitted after ERC20 Loom tokens are deposited into the PlasmaChain Contract. The Transfer Gateway Oracle will pick up the deposit event and push new instructions for the Coin Contract to mint the exact amount of ERC20 Loom tokens that have been deposited into the PlasmaChain Contract. These Plasma Loom tokens will be stored in the Tendermint account you created through Loom Network’s PlasmaChain Dashboard.
- Delegators interacting with DPOS contract on PlasmaChain to delegate with a validator:
Through Loom Network’s PlasmaChain Dashboard, delegators will be able to search for the list of validator nodes and select their choice of validator. Once confirmed on the amount of Plasma Loom tokens to delegate and the delegation period, the delegate will query the Coin Contract to approve the desired delegate amount for use by the DPoS contract.
The delegator will be required to sign twice — firstly, to allow the DPoS contract to deduct Plasma Looms from your wallet on the Coin Contract; secondly, to allow the DPoS contract to transfer the stated amount of Plasma Loom tokens from your wallet to the validator’s address.
Once the transactions goes through, you will be officially delegating and playing your part to bootstrap Loom Network’s PlasmaChain!
- Validating transactions and proposing blocks:
Validators verify transactions and take turns proposing blocks in order to keep the network honest. The responsibilities of the validators are immense — In the unlikely event of a validator trying to sign invalid transactions or going offline, stakes under the validator (including the tokens that are delegated) will be slashed.
In return for their efforts to secure the PlasmaChain network and to uphold their responsibilities, validators earn transactional fees from the following sources:
- dApp deployment on PlasmaChain;
- Transaction fees from utilization of the ERC721 marketplace;
- Fees earned from Plasma Cash transfers between PlasmaChain and Ethereum (or any other layer 1 platform in the future); plus other sources to be announced in the future!
Validators can then choose to share a portion of the transaction fees with delegators who have voted for them. The delegation rewards will be automatically distributed by the DPoS smart contract based on the amount of Plasma Loom tokens you delegated, amount of transaction fees on PlasmaChain and your overall delegation time period. You can check out these dope articles from James Martin Duffy to learn more about PlasmaChain delegation and PlasmaChain staking economics.
We hope that this post has been helpful in assisting all Loom delegators to understand how PlasmaChain works. We are very excited on our journey to kick-start this validation initiative with the setup of StakeWith.Us and going live on Loom Network’s PlasmaChain.
We will also be preparing a separate Medium post that will outline a step-by-step guide (with screenshots) on how to delegate and vote for your favorite validator (choose StakeWith.Us, by MW Partners)!
Please stay tuned!
StakeWith.Us is a secure Staking-as-a-Service provider for leading blockchain projects. Put Your Crypto to Work — Hassle Free.
We are currently preparing a simple dashboard that is free for everyone to use.
To get more updates on our validation updates, please follow StakeWith.Us on Twitter, Telegram and Medium. If you are interested to join our WeChat group, kindly approach gobigordietrying or mcry89 on WeChat.
Alternatively, reach out to Earn@StakeWith.Us if:
- you have any burning queries for us;
- if you are a project looking for a professional validator;
- you are looking into investment and partnership opportunities with StakeWith.Us.