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How “Cryptocurrency Agnosticism” Could Impact the Industry
The cryptocurrency space is constantly growing. With even popular fast food restaurants planning to launch new tokens and currencies, the space is becoming increasingly crowded. This makes it difficult for potential investors to decide: which cryptocurrency is the best, the one with the best chance of success? The more options there are, the harder it is to say.
Now, a new e-commerce blockchain startup called Particl is aiming to level the playing field by taking a cryptocurrency-agnostic approach. Here’s how Particl plans to achieve that goal, and what it could mean for the broader industry.
All cryptocurrencies supported
In theory, a cryptocurrency-agnostic platform like Particl is based on a fairly simple premise: all digital currencies are supported, and there is no built-in preference for one currency over another.
According to a report on Nasdaq.comParticl’s platform will allow users to purchase with any cryptocurrency currently available, from the most popular options like bitcoin and ethereal to the newest currencies that have yet to make their mark in the industry. Regardless of the currency the user chooses, they will be treated equally on the network market. Particl will also promote its own native currency tokencalled PART.
One of the unique features of the Particl platform is that users will be able to use different coins as portions of different transactions. The reason this is possible is that all currencies are converted into native PART tokens before going through the platform’s escrow system. Sellers then receive PART once each contract is completed and PART can then be converted back into other cryptocurrencies.
Why agnosticism?
The potential benefits of a cryptocurrency-agnostic platform like this are many. Users won’t have to search multiple exchanges to handle transactions for all their various holdings. Since all transactions are converted to PART, the platform’s native token will necessarily play a major role in all proceedings. Particl won’t have to worry about its platform collapsing if a single cryptocurrency goes down.
And yet, there are also challenges to an approach like this. Particl may struggle with the different support systems for all the currencies it deals with. To enable privacy and reliability for customers, Particl will have to accommodate a wide variety of conditions, all without favoring one currency over the others.
Nasdaq suggests that the PART token will help facilitate this. While users will not receive discounts when using PART, the token will still provide other benefits for the customer and the exchange itself.
PART tokens will generate income for stakers as a result of market listing fees and transactions, while customers will earn passive income based on network activity simply by holding PART in their digital wallets. PART holders will also be able to vote on marketplace listings. (See also: The Rise of “Private” Cryptocurrencies)