Kik, a blockchain startup designed to facilitate decentralized mobile messaging, has announced plans to move its ICO tokens from the ethereum network to Stellar, a rapidly growing protocol worth around $3.5 billion at time of press. This is according to remarks from Stellar’s CEO, Ted Livingston, who announced the news on a live broadcast earlier in the week. The Kik protocol has around 10,000 users, and Livingston believes this is “pushing the limit” of what the ethereum network can handle.
Stellar, like ethereum, is a programmable blockchain designed to enable the development of decentralized applications. The protocol split away from ripple in 2014 and is focused on creating a platform for building financial projects and digital infrastructure to solve real-world challenges, especially in the developing world. The Kik announcement comes shortly after Stellar made headlines with its partnership with IBM.
Stellar has a unique value token called the Stellar Lumen which is used to digitally connect between fiat currencies. It also features what is called the Stellar Consensus Protocol (SCP) which is a Byzantine agreement system that doesn’t rely on mining to secure and validate records on the blockchain. All users are required to hold a predetermined amount of lumen tokens to conduct activity on the network.
Livingston believes that the Stellar platform offers key functional advantages over ethereum. Most importantly, the CEO brought up the issues of ethereum scalability and gas prices in light of the network congestion caused by the popular app, CryptoKitties. If things go as planned, Livingston expects Kik to launch on Stellar in the second quarter of 2018.