Why HedgeUp is moving from the Layer 1 Ethereum Blockchain

Why Ethereum Layer 1 is not the best choice

To understand HedgeUp’s decision, one must understand what HedgeUp (HDUP) is, what they are trying to do, and why building on Ethereum (ETH) is a challenge.

HedgeUp (HDUP) is a Web3 project building a platform for people to invest in alternative assets. The platform uses NFTs to allow people to invest and trade valuable jewelry, luxury watches, precious metals and rare works of art.

Through NFTs, you can invest fractionally in assets. This means you don’t have to buy the entire asset. For example, instead of buying a $10,000 piece of art and incurring shipping and storage costs, you buy an NFT that represents a portion of the asset.

The asset itself will be insured and secured in a vault managed by the HedgeUp (HDUP) team. This makes it cheaper and more convenient to buy alternative assets.

However, having the platform on the Ethereum blockchain is a big challenge. Ethereum is not known for its scalability. This means that during peak periods the transaction fees become expensive. Transactions also take longer to process.

This contrasts with HedgeUp’s goal of making investing cheaper and more convenient. The platform wants people to be able to buy into alternative assets with as little as $1. And if you have expensive transactions and long confirmation times, this will be difficult to achieve.

This is where Stellar (XLM) comes in.

Stellar’s Suitability

Stellar (XLM) is a decentralized blockchain protocol. Created by Jed McCaleb, it is designed to facilitate cross-border payments and asset exchange. It uses its own cryptocurrency, called Lumens (XLM), to facilitate transactions. XLM can also be used as a bridge currency for exchanging other assets on the platform.

This gives the protocol its biggest feature: the ability to convert and transfer different types of currencies, including fiat currencies, cryptocurrencies and even commodities like gold and silver, in a fast, secure and affordable way. This is what makes the network an ideal platform for HedgeUp (HDUP).

HedgeUp’s (HDUP) platform will be available to investors worldwide. Anyone anywhere in the world will be able to invest in alternative assets. They will also be able to trade with other investors.

This creates instances of cross-border transactions. There will also be many asset transfers thanks to trading on the platform. And Stellar (XLM) is built to facilitate just that. Therefore, it provides the best platform for HedgeUp (HDUP) to build on.

Overall, HedgeUp (HDUP) is an upcoming project. It has the potential to change the dynamics of the alternative asset investment market. This makes its token, HDUP, one to watch in the next crypto bull run. Some analysts have predicted that it will 30 times before the end of 2023.

HedgeUp (HDUP) is currently in pre-sale. The token is available for purchase for as little as $0.013. Interested investors are encouraged to buy as the price will increase as the pre-sale continues.

Find out more about the HedgeUp sale here:

Twitter: https://twitter.com/HedgeUpOfficial