Bitcoin is the first cryptocurrency ever created that was introduced to the world in 2009. Bitcoin is the one who pioneered the concept of cryptocurrency and the blockchain ecosystem. Thousand of cryptocurrencies have appeared in the market since bitcoin was released back then. But Bitcoin is still a favorable one for people to save and gather since it has a big value and a wide variety kind of transactions.
Bitcoin Launchpad
Launchpad is a platform that helps cryptocurrency projects to launch and grow. It helps the project development by helping the developer team gain financial support from the investors through fundraising and token sales events. Not only helping projects to gain financial support, Launchpad also often helps the cryptocurrency project to gain exposure and build community.
Why Bitcoin Doesn’t Have Launchpad Platform
Nowadays big crypto ecosystem has their launchpad to support cryptocurrency project that are willing to join their ecosystem. Bitcoin is the most renowned cryptocurrency so far and has the biggest value in the crypto space. Even with the biggest value in cryptocurrency, Bitcoin doesn’t have a launchpad. This condition raises a question, Why does Bitcoin not have any launchpad?
Currently, there is not yet a Launchpad platform that is based on Bitcoin. Bitcoin itself is not used as a platform to launch new projects like Ethereum or other blockchain cryptocurrencies. Bitcoin’s limitation in script language and capability make it difficult to be used as a platform for launching new cryptocurrencies like the other big cryptocurrencies that often release new crypto tokens.
Therefore, not yet existing does not mean it can’t exist. There are possibilities to create a launchpad based on Bitcoin, but to create a launchpad platform based on Bitcoin is rather challenging, or rather big challenge. Some factors make it difficult to create a Bitcoin-based Launchpad Platform:
1. Limited Script Language
One of the factors why it is challenging to make is because of the limitation of the Bitcoin script language, The scrip language of Bitcoin is mainly to maintain security and reduce the risk of vulnerabilities. Because of this script language limitation, it is difficult to implement a complex function such as a smart contract that is needed for the launchpad system.
2. Transaction Complexity
Bitcoin has main function is to be a digital currency and make it transferable between addresses. implementing complex and intricate feature such as fundraising and token creation by Bitcoin transaction is a complex thing and require a lot of effort.
3. Decentralization and Consensus Mechanism
Bitcoin consensus mechanism focuses on keeping the security and decentralization nature. The implementation of a launchpad platform mechanism might be not suited to the Bitcoin consensus mechanic that can create errors in the Bitcoin network.
Read also : Get to Know Ethereum’s Innovations and Launchpad Advancements
4. Ecosystem Limitation
The ecosystem of Bitcoin has already changed from the function of a currency for transactions to the currency to save value and digital currency. The infrastructure for building complex decentralized applications and platforms, like Launchpad, is more developed on platforms like Ethereum and Polygon.
Polygon can be a good example of a good ecosystem to create a good launchpad such as Kommunitas launchpad which has high throughput and low transaction fees to ensure a swift and cost-effective crowdfunding method.
5. Transaction Cost and Speed
Bitcoin transactions can have variable fees and confirmation times, making it less suitable for the rapid and cost-effective execution required by the launchpad platform.
Due to the difficulties and complexity, most launchpad platforms are built on another blockchain platform. The launchpad platform needs a cryptocurrency that offers more flexible smart contract capabilities, faster transaction speed, and a supportive ecosystem for creating a system that can provide a launching cryptocurrency project.
Bitcoin Role In Launchpad
Even though Bitcoin doesn’t have any launchpad for launching new cryptocurrency projects, it still plays a role in other cryptocurrency project launches. There are some Bitcoins in helping other cryptocurrency projects to launch. Those roles are explained as follows:
1. Fundraising Investment
Bitcoin is an uncommon choice for a transaction in token sale, unlike the Ethereum-based token which is mostly used. The transaction using Bitcoin directly is also accepted for raising funds by many projects. Investors could transfer Bitcoin to the addressed wallet in exchange for a new token from the project or another item as a sign of participation in funding the project.
2. Securing Transaction
Blockchain in Bitcoin can be used to verify and record any transaction related to the project securely. It has features that can record many important information such as the previous ownership and agreement. The information is saved in Bitcoin’s blockchain.
Tokenization and Aset management
Bitcoin can be used as cryptocurrency leverage for the developer team. People can obtain leverage by digitalizing real-life assets and turning them into Bitcoin. Turing a real-life asset is also known as the tokenizing process.
3. Cross-border Transaction
Bitcoin doesn’t have limitations such as country boarder and currency borders. Bitcoin’s values are also always the same wherever you are and whenever it is used. The borderless nature of Bitcoin can help cross-border transactions such as international payment, remittance, and transactions that involve participants or investors from another country.
4. Security and Integrity
Bitcoin can provide good security and integrity for storing the data transactions under the blockchain. Some transaction during the new cryptocurrency project development requires a high level of data integrity, which makes Bitcoin the one suitable instrument.
5. Store of Value and Hedging
Bitcoin has a nature that can’t be affected by the world economy and monetary condition. It makes Bitcoin really useful because it can be an asset that is not affected by inflation. Bitcoin also can be used as leverage for new cryptocurrency projects to manage financial risk or to offer value to their stakeholder.
In summary, Bitcoin is not a platform that is used to launch new cryptocurrency projects, unlike the Ethereum-based crypto space which has a launchpad platform. A cryptocurrency project developer needs to consider how the project can align with Bitcoin’s nature and attributes before choosing to use Bitcoin as their currency during the fundraising.