Blog Crypto Tomochain: How It’s Solving Ethereum’s Scalability Problem

Tomochain: How It’s Solving Ethereum’s Scalability Problem

date January 17, 2022 time 5 min read 818 views

As NFTs and other applications of smart contracts become more popular, Ethereum is more in-demand than ever—but some key problems have led to doubts about the viability of the protocol. Tomochain is one of the platforms offering a potential solution by providing a more scalable platform. But what exactly is Tomochain, and how could it solve some of Ethereum’s most significant limitations?

It might be a relative newcomer to the crypto world, but Tomochain has already established a solid presence in the market. No wonder—the lack of scalability and high transaction times for major crypto protocols have become increasingly prominent problems, and Tomochain might just have what it takes to overcome them. But three years after its launch, how far has it come with achieving its goals? 

In an attempt to answer this massive question, we’ll break down what the protocol is and how it works, the Tomochain price history, and what the future might hold for tomochain coin (TOMO) and Tomo wallet. Let’s go.

Tomochain coin review 

The primary purpose of Tomochain is to offer an alternative to Ethereum’s slow transactions and expensive fees, which prevent the blockchain giant from being a good place for developers to build applications. 

Tomochain is one of the more exciting projects around right now, thanks to its mission to make Ethereum more scalable.
Tomochain is one of the more exciting projects around right now, thanks to its mission to make Ethereum more scalable. (Source: TomoChain)

Tomochain is what’s known as a hard fork of Ethereum, meaning it was built using the same script as a foundation, but made some changes to incorporate key solutions. We’ll get into the technicalities of how exactly Tomochain functions shortly, but first, let’s take a look at its impressive rise to prominence.

Tomochain price history

Before we get into the use cases of TOMO and finding out whether it’s among the best coins to invest in, you’ll probably want to know how its price has performed. After all, nobody wants to invest in a dud coin. 

The Tomochain price has seen some impressive spikes over the last year.
The tomochain price has seen some impressive spikes over the last year. (Source: CoinMarketCap)

When TOMO launched in April 2018, it was worth $0.63, and it then enjoyed a quick rise up to $2.07 within the next few months. However, it wasn’t to last—the value promptly dropped down to below the $0.6 mark, where it remained for the next couple of years.

The tide turned in mid-2020, with its value climbing back up to $1.38 in August. But this was just the beginning. As is the case with many other cryptocurrencies, TOMO benefitted from the crypto market boom in March 2021. This time, TOMO’s value surged way past its previous high point, soaring to $3.45 in April 2021. 

It would go on to fall and rise two more times in 2021, although eventually it ended the year at the lower price of $1.54. Could another peak be coming shortly? We’ll need to do some research to answer that.

Where to buy tomochain coin (TOMO)

If hearing about TOMO’s impressive price increases has encouraged you to buy it, you’ll be pleased to know that it’s available on major exchanges like Binance and Kucoin. But before you do anything too drastic, make sure you understand the value Tomochain offers and the role of TOMO in all of that.

Tomochain and Ethereum

Ethereum is the second–biggest cryptocurrency around thanks to its status as a powerful place for developers to build their applications on and make use of smart contracts, enabling them to host everything from NFTs to games. But despite its success, the protocol has its fair share of problems. 

It’s a well-known fact in the crypto world that Ethereum has a scalability problem. One of its key uses is that developers can use it to create and launch decentralized applications (dApps). But for this to be viable, speed and efficiency are essential—and that’s exactly what Ethereum lacks. 

The protocol uses a proof-of-work system, meaning miners must compete to verify transactions by competing to solve cryptographic puzzles. This takes time and requires a lot of computing power, resulting in steep Ethereum gas fees and slow transaction times. Ethereum can only handle around 15 transactions per second, and recently there have been outcries about overly expensive gas fees

The Ethereum team themselves are scrambling to solve the problem through a transition to Ethereum 2.0, which would switch the protocol’s verification method from proof-of-work to proof-of-stake. But competitors like Tomochain might just get there first.

The role of Tomochain

Tomochain can process 5,000 transactions per second, and its fees are just 1% of those on Ethereum. How? Instead of relying on proof-of-work, Tomochain verifies transactions using proof of stake voting, meaning TOMO tokenholders elect 150 “master nodes” they choose to vote on their behalf. This system is quicker and more efficient, which keeps the costs low.

Plus, Tomochain plans to process transactions even more quickly in the future by introducing sharding, which involves splitting a ledger up into “shards” to keep it running more efficiently as the amount of data to process grows. 

What is tomochain coin used for?

TOMO is a key part of the proof of stake voting method. Those who own TOMO have a role in the functioning of Tomochain as they can vote for the network participants who verify transactions. This helps keep Tomochain efficient because, instead of incredible amounts of CPU being needed for users to compete to verify a transaction, the responsibility is delegated to a few reliable entities. 

Successful master nodes who vote in the same way as the consensus receive rewards in the form of TOMO, and so do those who voted for them to be master nodes.

Therefore, anyone using the network can stake their TOMO tokens to earn, even if they’re not the ones verifying transactions. And, as more people stake, the network gets better and more secure.

The token can also be used to vote on how the network is run, so TOMO really is essential to the functioning of the entire protocol.

Tomo wallet and uses 

Plus, this isn’t all Tomochain has to offer. It has its own Tomo Wallet, where you can store TOMO tokens and do other important activities, like vote for master nodes and keep track of your rewards.

As well as a great protocol, Tomochain boasts its own Tomochain wallet.
As well as a great protocol, Tomochain boasts its own Tomochain wallet. (Source: Unsplash)

Overall, due to its fast transaction times and scalability, it’s fair to say that Tomochain is in with a chance of becoming the go-to platform for building applications that need smart contracts. And as we discover more potential uses for this technology, scalability is only going to become more important.

However, it has a fair amount of competition—from both Ethereum itself (in the form of Ethereum 2.0) and other protocols like Polkadot and Harmony. It’s all to play for.

Put your tomochain to use with MyConstant

If you’re excited about Tomochain and its potential, you might be considering investing. But if you don’t want to do any staking yourself, did you know that you can do more with your crypto assets than leaving them sitting in a wallet?

With platforms like MyConstant, you can collateralize your tomochain to get a crypto-backed loan and invest in other cryptocurrencies. Other benefits include:

  • 24/7 customer service.
  • Rates as low as 6%.
  • Early repayments for lower rates.
  • Instant matching.
  • Store and borrow against over 70+ different cryptocurrencies.

Sound interesting? Sign up for a free account today and start investing in tomochain coin.

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George Schooling

George Schooling

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Tags: Tomochain price tomo wallet

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