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’re 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 let people invest and trade valuable jewelry, luxury watches, precious metals, and rare artwork.

Through NFTs, you can fractionally invest in assets. This means you don’t have to buy the entire asset. For example, rather than buying a $10,000 piece of art and incurring shipping and storage costs, you buy an NFT representing 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 comes with a huge challenge. Ethereum is not known for its scalability. This means that during peak periods, transaction fees become expensive. Transactions also take longer to process.

This contrasts with HedgeUp’s goal of making investments 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 hard 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 exchanges. 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 low-cost manner. This is what makes the network an ideal platform for HedgeUp (HDUP).

HedgeUp’s (HDUP) platform will be accessible 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 a lot of asset transfers happening 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 up-and-coming project. It has the potential to change the dynamics of the alternative assets investment market. This makes its token, HDUP, one to watch in the next crypto bull run. Some analysts have predicted that it will 30x before the end of 2023.

HedgeUp (HDUP) is currently in presale. The token is available to buy for as little as $0.013. Interested investors are encouraged to buy as the price is bound to increase as the presale goes on.

Find out more about the HedgeUp presale here:

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