Fast stablecoin payments through PlasmaChain integration

James Martin Duffy, Co-Founder at Loom Network, reported on 14 March about scaling Loom PlasmaChain by adding support for top 100 ERC20 tokens.

Loom Network is a platform for building a highly scalable delegated proof of stake (DPoS) sidechains to Ethereum. The platform has a focus on large-scale games and social apps. PlasmaChain is a high-performance DPoS sidechain to Ethereum. It enables zero-fee and near-instant transfers of tokens.

James commenced by stating about a cross-promotion between Binance and Zombie Battleground that required feature changes for Loom PlasmaChain. Since the promotion had a giveaway of Binance Coin (BNB), the feature changes were related to BNB support.

James continued to inform that since BNB is an ERC20 token, adding customizations to support one token can be extended to other tokens. This was just the principle that was leveraged and top 100 ERC20 tokens by market cap were integrated.

James conveyed that among the bunch of tokens added, six major stablecoins were a definite addition. These tokens were Coinbase/Circle’s USD Coin (USDC), TrustToken’s TrueUSD (TUSD), Maker Dai (DAI), Paxos Standard Token (PAX), Gemini Dollar (GUSD), and STASIS EURS (EURS).

James captured the idea about stablecoins prevailing in the current market. He expressed that cryptocurrencies are fast gaining pace among users. However, cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are plagued by volatility. This drawback has prevented mass adoption. Stablecoins could overcome this problem by not having drastic fluctuations.

A healthy sign is shaping up where firms realize and uphold the power of stablecoins.

James cited an excellent advantage of integrating stablecoins as –

“But integrating them into a Layer 2 like PlasmaChain is like putting stablecoins on steroids — bringing them even closer to a potentially disruptive form of online payments.”

James added that on the conventional Ethereum blockchain, transactions could take 15 seconds up to a couple of minutes to get confirmed. This wait time is much longer in case of congestion. This latency would not be suitable, for example, as an in-app purchase in an online game.

James reassured that this hindrance would be overcome with PlasmaChain. PlasmaChain offers a confirmation time typically between 1-3 seconds and is similar to using a credit card. The user would be spending stablecoins and the transaction would be an “instant and irreversible settlement ”.

Last month, Loom reported about its PlasmaChain staking going officially live. What this implied is that any LOOM token holder could become an active member and support validators in securing PlasmaChain.

James concluded by noting the work done by companies like MakerDAO in the stablecoins space. James expressed that Loom would be committed to taking it further.