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The popular chat app Kik unveiled his plans to roll out his Kin chips on the Ethereum and Stellar blockchains , making it one of the first cryptocurrencies to support the bidirectional network.
Kik developer Gadi Srebnik made the announcement Wednesday explaining how the company – which raised $ 98 million through an initial offer of coins last year – will deploy cryptocurrency on several blockchains to improve liquidity and efficiency. ecosystem.
Up to now, Kin was functioning as an ERC20 token on the Ethereum blockchain. Frustrated by the network’s susceptibility to network congestion, Kik said last year that he was going to transfer his chips to Stellar, whose federated consensus model allows faster and cheaper payments.
However, Stellar is much less liquid than Etherheum, so the exchange of blockchains would have had its drawbacks. Recognizing this, Kik has developed a way to deploy Kin in parallel on both blockchains – without increasing the total supply. Internal transactions with a single digital service will likely use Stellar-based tokens, while external payments and trading volume will likely occur primarily. on the Ethereum network.
“While Ethereum provides liquidity to Kin’s owners, its charging times and fees can not meet our needs for the daily use of consumers.” Adding Stellar as a second blockchain will allow us to exploit the Kin ecosystem on a faster and more efficient basis, with low transaction fees – which is necessary for us to reach the speed and speed of the game. scalability required for digital services in the ecosystem
Once the Stellar-based Kin token has been released and fully initialized – which will happen later this year – users will be able to move their chips between networks by locking them on one and unlocking them from the network. another, presumably an intelligent contract mechanism. The developers say this will help ensure that the tokens keep a stable value on both networks.
However, Srebnik said that the development of this mechanism will probably take several months. He did not specify whether this would cause a delay in the release of the standalone Kin application, which will work on the Stellar blockchain.
Image from Shutterstock to photo
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