Binance Research, cryptocurrency exchange Binance‘s brand new analytics department, just released two reports on Loom Network (LOOM) and GoChain (GO). Here’s what they had to say about the first two cryptocurrencies on their list.
The following article is not investment advice.
What Is Binance Labs?
Binance Research is a brand-new part of the exchange. It aims to provide investors with well-researched information on the cryptocurrency market.
This research firm is Binance’s third education-focused division, and part of the company’s mission for global expansion—all while attracting institutional investors to cryptocurrency. In other words, by providing well-researched information on the market, Binance Research could give large funds enough confidence to invest in digital currency.
Loom Network (LOOM), according to Binance Research
Loom Network (LOOM) is a Delegated Proof of Stake (PoS) network that can integrate with Ethereum‘s blockchain. In other words, it aims to assuage congestion within the Ethereum network as more and more developers create dApps and blockchain-based games.
The report also describes it a “layer-2 scaling solution.” In simple terms, this is exactly what it sounds like: the network builds a blockchain on top on Ethereum’s existing one, thereby using the same protocol but decreasing congestion.
It also facilitates smart contract design for developers. It offers other products for developers, including blockchain-based games, sidechains and dApp testing platforms.
Binance Research’s Conclusion
Loom Network (LOOM) has several advantages per their report.
- They’re working to solve scalability issues, one of the biggest obstacles to wider adoption.
- It’s out of the testing phase and already being used by developers.
- Going off of that, Loom Network especially caters to developers and created the first dApps themselves in order to showcase Loom Network’s potential.
- It does not challenge Ethereum. Instead, it expands it.
- It has a large international following through Telegram, Twitter, Reddit and Facebook.
Overview of GoChain (GO)
GoChain (GO) is the subject of Binance Research’s second report for institutional investors. In it, the firm explains that GoChain is a decentralized network that uses Proof of Reputation. It’s focused on smart contract and dApp design.
Unlike LOOM, GoChain is an alternative to Ethereum as a blockchain platform for applications. Though compatible with Ethereum wallets, GoChain describes itself as having “100x the performance of Ethereum.”
A big part of this per the report is its affordability. GoChain Go is “greener,” meaning that it uses less energy than Ethereum. Additionally, the report emphases the security of GoChain network smart contracts.
Binance Research’s Conclusion
The network has low fees, and though it is competing with Ethereum, it does offer Ethereum wallet integration. Specifically, GO-20 tokens are compatible with Ethereum.
Additionally, its network can easily get rid of suspicious nodes. And Proof of Reputation, a peer-review based system, keeps the network secure through consensus. Furthermore, a maximum of 50 validated nodes distributes transaction fees.
Binance Research Reports
These are only two of many reports one can expect from Binance Research. Both cryptocurrencies, Loom Network and GoChain (GO) are Ethereum-related dApp and smart contract platforms. They focus on the issues of scalability, cost and efficiency.
With Binance Research, the exchange looks towards a future of diverse crypto investments that go beyond trading to blockchain applications. Was this what the CEO of Binance means when he predicts crypto growth?