Synereo Switches to Ethereum Blockchain Due to Bitcoin Transaction Delays
Synereo, Tel-Aiv based attention-economy platform, has announced that it will migrate its cryptocurrency — AMP — to the Ethereum blockchain. The company cites Bitcoin’s scalability issues as its reasoning for making the transition.
Synereo: Bitcoin Just Too Slow
According to a press release issued by the company, the team chose Ethereum due to its lower costs and faster transaction times relative to Bitcoin. The team also said it plans to utilize Ethereum’s smart contract capabilities.
“We’ve determined the Ethereum platform offers the best current and future feature set, with the most active and involved community to support the expansion of our offerings,” said Synereo CEO Dor Konforty.
When asked if the company would consider switching back to Bitcoin if the scalability issue comes to a resolution, marketing VP Victoria de Lieme told Bitsonline:
“The Bitcoin blockchain today mainly supports monetary transactions, while the Ethereum blockchain has a vast shared infrastructure; one of the main reasons Synereo is migrating to Ethereum is its smart contracts capabilities needed for teh development of Synereo’s products. Since Bitcoin doesn’t offer smart contracts at all, shifting back would not be possible.”
It should be noted, however, that the recent launch of RSK now makes it possible for companies to build smart contract applications on top of the Bitcoin blockchain.
Additionally, in light of the CryptoKitties controversy, Bitsonline contributor Tyson O’Ham reported that Bitcoin could actually be up to 400 percent more scalable than Ethereum, even with its current block size limit of 1 MB.
Once the migration to Ethereum is complete, AMP tokens will take place at WildSpark.me. According to the press release, users with existing AMP balances on WildSpark — as well as new users depositing AMP after the switch — will receive the new ERC20 tokens. Users will be able to withdraw these tokens to standard Ethereum wallets.
Do you think Synereo made the right decision in switching to Ethereum? Share your thoughts in the comments.
Images via Synereo, Ethereum