Friend.Tech to build own blockchain, ending dependence on Base

Friend.Tech to build own blockchain, ending dependence on Base

Friend.Tech to build own blockchain, ending dependence on Base As a tech journalist, Zul focuses on topics including cloud computing, cybersecurity, and disruptive technology in the enterprise industry. He has expertise in moderating webinars and presenting content on video, in addition to having a background in networking technology.

With the introduction of its proprietary blockchain, Friendchain, and the native FRIEND token, the socialFi app Friend.Tech is stepping away from its existing framework within the Ethereum ecosystem and the layer-2 solution Base.

The announcement of this proprietary cryptographic network has sparked considerable controversy and concern within Friend.Tech’s community. Users are demanding explanations for the team’s decision to abandon Ethereum’s infrastructure in favour of their own blockchain.

Strategic partnerships and token utility

According to the announcement posted on Friend.Tech’s official X profile on June 8th, the team will be collaborating with infrastructure provider Conduit to build this new layer-1 blockchain called Friendchain. The FRIEND token, which was airdropped to the community in early May, will serve as the transferable gas token powering this network.

Although a concrete timeline has not been provided, the transition from Base to Friendchain is expected to occur within the first half of 2025. This uncertainty has sparked fears and doubts among Friend.Tech’s userbase, particularly regarding the tokenisation and trading of X profiles.

A major concern being raised is how Friendchain will tangibly add value to the decentralised Friend.Tech app in ways that could not be achieved on Base or Ethereum itself. Trader Dr Kojipup directly questioned the team on this during the announcement.

Others have highlighted that transaction fees on the FRIEND blockchain are expected to be higher compared to the low gas costs currently seen on Base, especially after Ethereum’s recent Dencun upgrade, which significantly reduced layer-2 fees.

The only plausible justification seems to be that by controlling its own blockchain, Friend.Tech could potentially launch several proprietary ‘appchains’ whose transactions would be processed using the FRIEND token. This would provide the team a revenue stream from collecting fees on the Friendchain network.

This initiative corresponds with previous declarations from ‘Racer,’ co-founder of Friend.Tech, regarding his ambition to move past layer-2 solutions like Base in favor of developing an autonomous ecosystem for their platform.

While the motivations behind Friendchain are being scrutinised, the markets have reacted positively so far to the prospects of FRIEND taking on greater utility. In the first 4 hours post-announcement, the token’s price surged by 30% from $1,116 to $1,468 as traders likely banked on its potential as Friendchain’s gas token. It has since retraced and stabilised around $1,234.

However, the long-term price performance of FRIEND will be heavily contingent on whether Friendchain can generate meaningful fee revenue to justify abandoning Ethereum’s mature infrastructure. The initial hype for Friend.Tech’s socialFi app peaked at over $1 million in fees in just its second week, outperforming major platforms like Uniswap briefly. But interest had waned until the FRIEND token launch revived it in April 2024.

Challenges and opportunities ahead

Friend.Tech’s bold move to initiate its own Friendchain blockchain ventures into unknown territory. The community is both fascinated by the possible benefits and wary of the risks and expenses associated with departing from Ethereum’s well-established ecosystem.

The venture into a proprietary blockchain could make or break Friend.Tech’s standing in the rapidly evolving socialFi realm. As the ‘Friendchain’ migration approaches, users are expecting more in-depth information and justifications from the team.

Want to learn more about blockchain from industry leaders? Check out Blockchain Expo taking place in Amsterdam, California and London.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

Tags: ,

View Comments
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *