Mass adoption token meets mass adoption chain: Gifto migrates to Binance Chain
Today marks a leap forward for Gifto.
In our quest for making Gifto the most widely-used token by mainstream users, we’ve pushed the boundaries on what’s possible building an Ethereum web wallet that is secure, easy to use, and fast.
While we have tremendous respect for what the Ethereum community has built, it’s time for Gifto and the Gifto Wallet 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 user experience.
So, without further ado: Binance Chain, here we come.
Binance Chain aims to be a fast chain for digital asset transactions. Currently, the crypto world’s biggest need is to get more non-crypto mass users, and therefore funds, into the market. Binance Chain is uniquely positioned to support this and thus accelerate mass adoption of crypto and consumer acceptance of blockchain tech.
Hard truth: for the 99.9% of the billions of internet users out there, crypto is just too difficult to use. In order to make a simple payment with crypto, a new user needs to:
- Download a wallet
- Set up a private key
- Estimate the gas fee and initiate a transaction
- Wait for an indeterminable amount of time to process. Depending on the Ethereum chain traffic and other issues, the transaction may or may not finish.
We at Gifto have already made this flow much simpler for our mass market users in Uplive by hiding all the difficult tasks from them: you can just download Uplive, and voila, your wallet is there to use. Sending virtual gifts to other Gifto users happens instantly in our off-chain wallet infrastructure.
However, most other major consumer applications in the world have not even been able to make this first step, let alone getting their users to use crypto.
“We’ve supported Gifto from the very beginning as a strong example for one of the first mass adoption tokens. We’re thrilled that Gifto will help expand Binance Chain not only for the crypto industry but the mass market beyond it.” — Ted Lin, Chief Growth Officer, Binance
But a simple-to-use wallet is not enough. Eventually, we want to move on-chain. For a global consumer company like us, with now close to a hundred million users in Uplive, we would have to pay significant fees a year for all Gifto Wallet transactions to be processed on Ethereum. And as mentioned before, these transactions cannot be guaranteed to finish quickly and predictably. Mass market users expect the opposite experience: low fixed fees and instant, predictable processing, just like in current fiat world.
This experience is exactly what the first version of Binance Chain delivers, with less-than-one-second confirmations and a small, fixed-amount BNB transaction fee.
Let’s face it, fancy features like smart contracts are great, but when they slow down transactions and open up security vulnerabilities, they are not worth it if all you want to do is to pay crypto currency for a virtual gift. As consumer application developers, we should not need a sub-industry of smart contract security audit companies every time we want to add a crypto payment method to our apps.
Beyond the chain’s features, why would Gifto put trust into one chain backed by one company? Doesn’t that go against the spirit of decentralization that is at the core of blockchain?
Having worked closely with Binance since we were the first project on Binance Launchpad, we believe the pros outweigh any risks. Binance has built a fast-processing, scalable, and operating blockchain in just 6 months, which few projects have done. Binance Chain will continue to benefit from the product execution capability honed from operating Binance exchange, one of the largest volume exchanges and fastest-growing consumer products in the world. And finally, Binance Chain will have instant access to Binance.com’s millions of users, which will help it mature quickly.
The crypto world has always been a mix of centralization and decentralization. De-centralization promotes trust (or operates in a lack of trust), and centralization provides speed and convenience. In the real consumer world where consumers expect things to run quickly and predictably FIRST, some degree of centralization is needed.
As a global consumer product company ourselves, we think that in addition to being a fast digital asset transaction chain, Binance Chain can also help to enable other mass-market, non-crypto applications to deploy crypto faster and easier. We ourselves are looking forward to working with Binance Chain on a deeper basis, and to develop more applications that operate on it.
How Gifto uses Binance Chain
Our first step will be to support the migration of Gifto ERC20 tokens to BEP2 tokens on Binance.com. The actual timing and process will be announced together with Binance once the Binance Chain mainnet is launched and stable on Binance.com
Our second step will be to support Binance Chain tokens in Gifto Wallet, enabling BEP2 token to be used alongside Gifto ERC20.
Thereafter, we can begin more rollout of the Gifto wallet across a number of 3rd-party apps that are already in discussion. We are sure that more interesting implementations will come up as we start using Binance Chain on a large scale. Imagine the worlds’ billions of gamers, streamers, and creators buying, playing with, and exchanging virtual currencies and digital assets instantly and securely… That’s where we’re headed with the Gifto Wallet and Binance Chain.
Migration Process — Note to Gifto Users
This migration will be very different from a typical mainnet migration, in that Binance and Gifto will support both ERC20 and BEP2 GTO tokens in parallel. Current trading and usage of Gifto tokens will not be impacted. The actual migration will not be forced, rather, will be user-led.
Once migration starts, any user can choose to convert their ERC20 GTO tokens to BEP2 on Binance.com, at their own time. ERC20 GTO token trading will not be affected. See below for details:
- ERC20 GTO tokens can, for at least one more year, be used in the Gifto Wallet in Gifto apps including Uplive and Giftomon as well as www.binance.com.
- In a few weeks, users will be able to deposit ERC20 GTO to www.binance.com for conversion to BEP2 GTO.
- Within the next few months, the Gifto Wallet will become compatible with BEP2 GTO (Gifto tokens on Binance Chain) as well as BEP2 BNB.
- Over at least the next year, the Gifto Wallet will support both flavors of the Gifto token — both ERC20 and BEP2, and display them both as a unified GTO token in the Gifto Wallet.
- Longer-term, we plan for the Wallet to continue supporting Ethereum assets. Welcome to the cross-chain world!