Crypto Chain Hopping Is Now A Thing As Popular Services Look To Find The Right Blockchain Fit
The Popular Move Of Blockchain Migration
It is no secret that the blockchain industry is always moving forward and trying to create the best technology. This makes most teams be constantly looking for ways to refine their technology and it took us to the recent wave of blockchain migrations.
The latest trend is to move from Ethereum to the new Binance Chain. Today, a company called Gifto announced that it would move from one chain to the other one. This is just the beginning as we expect several other companies to do something similar soon.
Gifto affirmed that they had a “tremendous respect” for the Ethereum community, but that it was the time to move to a new blockchain now and to pursue more aggressive plans that could help the company to finally be able to achieve mainstream adoption.
They affirmed that costly transactions and slow transactions have a negative impact on the experience, which is one of the main reasons why they simply decided to leave the ETH chain behind and start this new partnership with Binance’s chain.
It makes sense. The GTO tokens of the company do not have functionalities that will benefit from the Ethereum smart contracts, but they could use faster transactions and the Binance Chain was created to be fast. Several projects criticize the congestion of the chain and high fees as the reasons for leaving Ethereum.
Changes are common even outside Ethereum. Projects change from the main BTC network to Bitcoin Cash and vice versa, as well as changing from several different kinds of projects. As many promises are simply not able to materialize or teams grow impatient, changes end up happening all the time.
Scalability issues are not all the reason why people are so tired, though. Some projects simply choose to change their networks for publicity reasons. Going to a newly launched blockchain carries a lot of hype. For instance, several projects ditched Ethereum when the EOS launched and the same is happening with Binance Chain now.
These migrations may inflate the price of tokens, so they act as a pump. Often, however, there is a dump afterward when the migration was simply done to pump prices, which is never a good long-term idea. General interest has to be maintained with quality, not publicity stunts.
The main reason for Gifto, however, is a lack of faith in smart contracts. The company had a simple product, may way too simple for Ethereum. They did not like that they had to hire auditors whenever making any chance because smart contracts were so complex if they barely used them.
Binance may be eyeing Ethereum’s clients but the truth is that the two chains are very distinct and companies like Gifto will certainly be at home in their new chain if what they really want is simplicity and speed.
It is curious that even rivals of Ethereum like EOS, Tron and Binance Coin were started there using the ERC20 protocol. After that, they launched their own chains. First, they use the systems and then they become competitors, something that is normal in this space.
The truth is that chain swaps will probably continue to happen for a long time. While the market is completely established yet there is a big chance that we will see things like this happening from time to time as companies are still getting their foot in the industry and changing their minds.