April 18, 2021

Ethereum fails to meet scalability requirements – Kik Creators …

Ethereum fails to meet scalability requirements – Kik

The creators of the popular Kik messenger, which became the first mainstream company to hold an ICO and issue its own cryptocurrency token, can ditch the Ethereum blockchain in favor of another cryptocurrency blockchain. Writes about this CoinDesk.

“Since we want the Kin ecosystem (note – the name of its own token Kik) to scale for a large number of participants and huge volumes of transactions, Ethereum may not be a very suitable solution,” said the head of Kik blockchain development Leonid Beder.

Given the role of Kik in popularizing such a method of raising funds as ICO, it can be assumed that the company’s abandonment of the Ethereum blockchain, which is by far the most popular solution for issuing cryptocurrency tokens, could force other companies to look towards alternative solutions. To date, about 13,000 cryptocurrency tokens have been issued on the Ethereum blockchain. A similar redistribution in the cryptocurrency ecosystem has already occurred once, when companies that had previously created their cryptocurrencies based on the bitcoin code switched to a more convenient solution proposed by Ethereum.

Ethereum fails to meet scalability requirements - Kik The creators of the popular messenger Kik, which has become ...

Beder noted that additional Ethereum networks like Raiden or alternative blockchains like EOS are not happy with them. Perhaps Kin tokens will be transferred to the Stellar blockchain, he said.

Ethereum fails to meet scalability requirements - Kik The creators of the popular messenger Kik, which has become ...

The need to transfer tokens is due to their purpose. According to Kik’s idea, Kin tokens will allow monetizing user activities on the platform. For example, artists who draw stickers will be able to sell them for tokens. Thus, a large number of microtransactions will be carried out, and the median cost of an Ethereum transaction is currently $ 0.14, which is another obstacle to using this blockchain..

Ethereum fails to meet scalability requirements - Kik The creators of the popular messenger Kik, which has become ...

Photo: nukeaf

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