For many years now, Ethereum has been the platform of choice for projects for token issuance.
The ERC-20 token standard provides a means of issuing a token quickly and easily before development begins. Projects can raise development funds by selling the tokens, with a view to migrating them to their own main net once it launches.
It sounds easy enough. However, the technical process behind a token migration isn’t so straightforward. For example, EOS issued its initial tokens on Ethereum, then swapped to the EOS mainnet once it launched in July last year.
It was a complicated process for users to swap out their tokens, necessitating entire blog posts with instructions about how to handle the swap with various wallets. The blog post even stated that more than a million tokens would become lost during the swap process. Even at today’s prices, which are around a third of their value at the mainnet launch, a million EOS tokens is worth more than $4.5m.
Now, crypto trading platform ChangeNOW has introduced an innovative token swap feature. It’s a kind of “token-swap-as-a-service,” which enables project founders to set up a quick and easy way for users to swap tokens to a mainnet.
The token swap process with ChangeNOW couldn’t be much more straightforward. From the perspective of the project founders, there is no technical know-how involved. ChangeNOW will handle the entire end-to-end process setting up the technical implementation of the token swap, as well as a dedicated web page for users to instruct their token swaps. The company assigns a project manager and dedicated development team to plan and carry out the workload.
The project decides all the specifics around how they want the swaps to work. For example, they could opt to have a 2:1 swap or choose a one-way or two-way swap. Project founders can even opt to have their token, listed on ChangeNOW as part of the service package. Once everything is set up, the project simply directs users to the web page so they can implement their swaps.
When users navigate to the token swap web page, they only need to enter the number of tokens to swap, and their wallet address. It’s also possible to use a QR code instead of a conventional address. The webpage will also inform users approximately how long it will take before they can see their swapped tokens in their wallet.
ChangeNOW even implemented the token swap service for their own NOW token migration. Earlier this year, when the Binance main net launched, the company decided to adopt a hybrid token model. Half of the NOW tokens remained on the Ethereum blockchain, while the other half were burned and re-issued on the Binance blockchain. In fact, NOW was the first token after Binance’s BNB to adopt the Binance chain BEP-2 standard.
The ChangeNOW service is non-custodial. Therefore, there’s no need for users to worry about exchange hacks as the tokens are moved directly between their own personal wallets. The platform has a 99.99% uptime record, and the company has also established partnerships with well-known names in the industry, including Binance, Bitfinex, Ledger, and Trezor.
Over the past years, blockchains have tended to evolve into walled gardens. It’s relatively easy to set up a decentralized exchange that enables trading of one ERC-20 token for another. However, trading between blockchains has depended on centralized exchanges or the kind of technically overcomplicated process such as the EOS token swap.
Therefore, ChangeNOW’s token swap service isn’t just a nifty feature. Although full blockchain interoperability is still some way off, token swaps are helping to break down the barriers between blockchains. They are creating more connection points within the overall blockchain ecosystem and reducing friction for users. In turn, this helps to drive adoption.
If crypto is to gain mainstream appeal, players within the sector need to follow this lead and make it as easy as possible for newcomers. Token swaps are just one way to help streamline the crypto landscape.
So far, issuing tokens on an existing blockchain has provided an easy way of crowdfunding for projects. However, the friction for users in swapping to a mainnet later may put off less tech-savvy investors. By taking advantage of token-swap-as-a-service, projects can assure investors that a later token swap will be as easy as filling in a form. No special instructions, no blog post explainers, and no hassle.