Hello Diamonds announced that it would transfer its diamond-pegged Diamcoin stablecoin from Ethereum to Bitcoin Cash on the first quarter of 2019.
Diamcoin, an Ethereum-based stablecoin, will move to the new Bitcoin Cash (BCH) smart contracts protocol Wormhole next year.
Reports suggested that Hello Diamonds would move its Diamcoin to Wormhole in the first quarter of 2019. Diamcoin—with its price pegged to the price of one millicarat of a diamond—could then become the first-ever Bitcoin Cash-based stablecoin on the market.
Meanwhile, Wormhole is a newly added protocol that allows the Bitcoin Cash network to run smart contracts, which in turn could introduce tokens and initial coin offerings (ICOs) to the blockchain.
The company explained that the new Bitcoin Cash smart contract protocol provides many advantages compared with Ethereum, considered by many as the premier smart contracts platform.
Jeremy Dahan, Hello Diamonds CEO, said:
“Bitcoin Cash’s ability to handle high transaction volumes with low transaction fees is highly relevant for our ecosystem. Moving forward we have to be certain that the solutions that we choose can cater to our users.”
Ethereum has seen many problems as of late. One of those concerns is the congestion on the Ethereum network. Due to the sheer amount of tokens and ICOs on Ethereum, transactions slow down and fees go up.
Patrick Makedonas, ecosystem developer at Hello Diamonds, explained:
“The Ethereum Network has grown so big, and over the last year we have seen thousands of ICOs and other tokens being built on the Ethereum network. As a result, when all of these new tokens want to send big volumes in separate transactions, or if it is a busy time for the network, the Ethereum network simply slows down to a point where it is not efficient.”
Wormhole is available only on Bitcoin ABC’s Bitcoin Cash network, one of the two BCH blockchains running after an acrimonious split last November 15.