Blockchain Migration Is All the Rage

Blockchain Migration Is All the Rage

On April 24, Gifto announced it&rsquos relocating from Ethereum to Binance Chain. By doing this, it joins six other projects which have lately dedicated to probably the most spoken about new blockchain around. Blockchain migration can happen for several reasons, but beyond supplying an immediate shot of publicity, does making the move yield any lengthy-term benefits?

Also read: Survey Shows South Koreans Elevated Crypto Holdings by 64% This Past Year

Tokenized Projects Can&rsquot Stop Chain Hopping

&ldquoWhile we’ve tremendous respect for which the Ethereum community has generated, it&rsquos here we are at Gifto &hellip to maneuver to a different blockchain that better suits our aggressive plans for mainstream adoption,&rdquo reads your blog publish released today through the South Korean gifting protocol. &ldquoOne in which the real usage and development of the Gifto ecosystem could be proven today without incurring massive charges or slow transaction occasions which negatively impact consumer experience.&rdquo

Gifto&rsquos causes of relocating to a quicker and much more payment-centric chain seem sensible considering that its GTO token has no need for Ethereum&rsquos smart contract functionality. The truth that Gifto was the very first tokenized project to feature on Binance Launchpad resulted in once the project started eyeing alternative blockchains, there is only likely to be one champion. The reason why quoted for that switch &ndash charges and network congestion &ndash would be the most generally reported for projects jumping ship.

Blockchain Migration Is All the Rage

Eagerness and Irreconcilable Variations &ndash Two Causes of Abandoning Chain

A primary reason why Simple Ledger Protocol (SLP) has started for use for token issuance is due to the reduced onchain charges and fast confirmation occasions which are a hallmark from the Bitcoin Cash network. Although it&rsquos beginning for SLP&rsquos tokenized ecosystem, the participation of projects for example Liberland has increased interest. Ongoing delays towards the Lightning Network have caused some cryptocurrency users to change to Bitcoin Cash, as onchain charges for BTC have started to creep for the $2 mark in recent days. Similarly, the commitment of decentralized Lightning apps &ndash or &ldquoLapps&rdquo &ndash has yet to materialize, making the possibilities of building on BCH appear attractive to some developers.

Apart from scalability issues, there&rsquos one more reason why projects may want to switch blockchains: for publicity. Latching to the coat tails from the hottest new blockchain could be a method to fleetingly revive the fortunes of the flagging project. When EOS launched in 2018, numerous ERC20 projects made a decision to trust their fate to Dan Larimer&rsquos latest creation, and quickly go about initiating token swaps. While news of the blockchain migration can inflate an expression&rsquos cost, the results are short-resided. Ultimately, it may need greater than a new crypto network to create sustained interest.

Blockchain Migration Is All the Rage

Multiple Chains Existing together

In the announcement on April 24, Gifto made no bones about its causes of departing Ethereum, explaining: &ldquoLet&rsquos face the facts, fancy features like smart contracts are wonderful, however when they slow lower transactions and open security vulnerabilities, they aren’t worthwhile if all for you to do would be to pay cryptocurrency for any virtual gift. As consumer application developers, we ought to not require a sub-industry of smart contract security audit companies each time you want to give a crypto payment approach to our apps.&rdquo

For outsiders, peering strangely enough into the field of cryptocurrency, blockchain systems as well as their never-ending variety of token swaps and chain migrations must look like some strange type of digital cannibalization. Additionally to tokenized projects merrily chain hopping, systems themselves frequently begin existence on the rival&rsquos chain. EOS launched being an ERC20 token, for instance, before swapping once its very own mainnet was ready. Binance is presently doing exactly the same with BNB, that is transitioning to Binance Chain.

Whereas holders of EOS ERC20 tokens received a rigid timeline to upgrade or risk being lumped with useless tokens, Gifto takes a far more relaxed method of its chain migration, and can support ERC20 and Binance Chain&rsquos BEP2 in the wallet concurrently for that near future. Since it’s announcement cheerily concludes, &ldquoWelcome towards the mix-chain world.&rdquo

What exactly are your ideas on token migrations &ndash would they strengthen a crypto project? Tell us within the comments section below.

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