The term “Internet of Value” refers to a concept where digital assets exist only as information stored in the blockchain. However, to truly achieve this, the plaguing problem of scalability needs to be addressed first. One of the ways it can be achieved is through horizontal scaling, which brings us to TomoChain. TomoChain aims to achieve this by integrating second layer blockchain networks with the main Ethereum network, in addition to using atomic cross-chain transfers.
What Is TomoChain & How Does It Work?
TomoChain can be best described as a project aimed at providing solutions for blockchain scalability. Its architecture revolves around the “Proof-of-Stake” voting consensus, which enables every Ethereum smart contract to effectively run with an instantaneous transaction confirmation.
The Tomo blockchain has a range of products associated with it, with the Tomo application being launched first. The Tomo application, which was the first consumer application built on their blockchain, acts as a decentralized social media for knowledge sharing. It uses the Tomo Coin token as its native currency and already has amassed thousands of weekly active users. On 20th August 2019, TomoChain released their much awaited TomoZ mainnet for public participation.
What Are They Trying To Do?
As mentioned before, TomoChain aims to solve many of the limitations that exist within modern blockchain networks. With both Bitcoin and Ethereum still struggling with transaction performance issues, TomoChain aims to tackle these limitations in the following ways:
⦁ Problem with Confirmation Times: Both Bitcoin and Ethereum suffer from inefficient block confirmation times. The Bitcoin network has a block-time of 10 minutes, requiring 5 subsequent blocks for a block to get confirmed. As a result, for a transaction to be confirmed with low confidence, it usually takes one hour. The Ethereum network functions better, with an average confirmation time of 13 minutes previously, which still leaves a lot to be desired.
⦁ Problems with Fork Generation: Fork generation for different cryptocurrencies tends to consume substantial time and computational energy. This, in turn, makes the network more susceptible to different types of attacks.
⦁ Problems with Efficiency: Almost all major cryptocurrency networks have problems when it comes to scalability, especially while handling a large transaction volume. Even speeds of around 10 transactions per second severely restrict any plans of widespread adoption.
Understanding The TomoChain Architecture
A set of masternodes, functioning in a consistent manner through the TomoChain consensus protocol, is responsible for maintaining and producing the TomoChain blockchain network. These are full nodes which hold TOMO tokens. Any token holder can become a masternode if the following requirements are satisfied.
⦁ Token holders must be among the topmost voted masternode candidates in the system. This is done through a Voting DApp, which require token holders to send TOMO tokens through the smart contract mechanism.
⦁ Token holders are required to hold a minimum specified amount of tokens. (180,775.365 )
About The TomoChain Consensus Protocol
Masternodes in the TomoChain network share responsibility equally, to help keep the system stable. Full masternodes require powerful hardware configuration and high-speed connectivity to ensure the required block time gets achieved. Since only masternodes can produce or seal blocks, the TomoChain consensus applies the concept of double validation in place of single validation.
Double validation significantly enhances the stability of the existing blockchain network as “garbage blocks” are prevented from being generated. The risk coming from paired masternodes trying to commit malicious blocks is greatly reduced thanks to the randomization of block verifiers in Double Validation. As a result of this, the TomoChain network improves block generation times significantly, requiring only two signatures per block.
TomoZ: TomoChain’s New Protocol
As mentioned before, TomoChain announced the mainnet launch of the TomoZ protocol, which started on 20th August 2019. This new protocol was launched to enable token holders to transfer TomoChain based tokens without requiring any transaction fee.
The TomoZ protocol addresses several of the limitations that existed in the TomoChain ecosystem. Some of the important ones are mentioned in brief below.
⦁ Reducing Friction and Increasing Intuitiveness for tokens: Unlike the existing systems, the TomoZ protocol enabled any existing token on the blockchain to not rely on the native token TOMO. As a result, it enables users to freely perform transactions, even if they are not existing TOMO token holders.
⦁ Stable Coin Deployment: Before the mainnet launch, using stable coins required a user to hold a certain amount of the native token to pay Gas. The new protocol would allow the fee to be paid in the stablecoin itself, by issuing new TRC21 stable coins. Eliminating this concern can pave the way towards wider ecosystem adoption when it comes to Defi applications.
⦁ Loyalty Points: TomoZ would allow loyalty points from one vendor system to be exchanged with loyalty points of another separate vendor system, something which is not possible in existing systems.
⦁ Virtual Currency for dApps: TomoZ introduces virtual currency for dApps, with a definite, transparent, economic limit to the supply. This allows some real economic value to be derived from it.
Use Cases of their Token
The TOMO token can be used for a variety of use cases involving numerous functions which are described below.
⦁ Supply Chain Traceability: TomoChain aims to aid in supply chain traceability by using blockchain technology. It has check points where the status of each component or product is recorded and pushed to the network. This record is transparent and immutable, yet customizable, which can allow only a certain group of people to view it. End users can thus simply receive information and verify the origin of the products through a user-friendly mobile application.
⦁ Electronic Voting: Voting for elections can be more transparent and efficient when using the blockchain. TomoChain allows each vote to be issued as a non-fungible token.
⦁ Other use cases: Other use-cases include travel networks, food trace-ability, pharmaceutical tracking, decentralized domain names, Advertising ecosystems, etc.
Overall TomoChain may appear attractive to the majority of dApp makers and developers. As one of the fastest, Ethereum compatible chains in the market, the Tomo blockchain offers speed and scalability at a very low fee.
Additionally, TOMO can also be an attractive investment to companies planning on issuing their own tokens, such as the TRC21 token standard, due to a high level of token compatibility. However, much of how the project will fair in the future depends on other competing projects in the space. As of 11/18/2019, TomoChain is ranked 151st in terms of market cap according to coinmarketcap, with a value of 0.351319 USD. The token is trading on more than 18 markets worldwide, spread across exchanges such as OceanEx, DDEX, Kucoin and Binance.
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