Gifto, on April 24, that it is moving house from Ethereum to Binance Chain. It joins half a dozen other projects recently engaged to the most discussed new blockchain in town. Blockchain migration can happen for many reasons, but beyond offering an immediate shot of publicity, does it yield any benefits for long-term?
Role of Tokenized Projects
A blog post by the South Korean gifting protocol reads –
“While we have tremendous respect for what the Ethereum community has built, it’s time for Gifto … to move to a new blockchain that better suits our aggressive plans for mainstream adoption. One where the real usage and growth of the Gifto ecosystem can be shown today without incurring massive fees or slow transaction times which negatively impact the user experience.”
The Gifto’s reasons for moving to a faster chain make some sense given that its GTO token has little need for the functionality of Ethereum’s smart contract. The fact that Gifto was the first such project to feature on Binance Launchpad meant that when the project started to eye on alternative blockchains, there was just going to be one winner.
Two Major Reasons for Abandoning Chain
One of the reasons why SLP (Simple Ledger Protocol) has started to be used for issuance of the token is on account of the low fees and fast onchain confirmation times which are a hallmark of the BCH network. Where it is early days for the Simple Ledger Protocol’s tokenised ecosystem, the participation of the projects, on the other hand, has increased interest. Delays on the go to the Lightning Network have caused some digital currency users to switch to BCH, onchain fees for Bitcoin have begun to creep towards the $2 mark in recent weeks.
Other than from scalability issues, there’s another reason why projects may choose to switch blockchains, for publicity. Latching onto the coat is what tails of the hottest new blockchain may be a way to revive the fortunes of a flagging project fleetingly.