Flux pivots away from Ethereum and introduces its new protocol

Flux pivoted from working on an Ethereum-based decentralized application (dApp) to build the Flux Protocol, an open protocol that facilitates the creation of a market on any asset or event. In the process, Flux transitioned to building on NEAR Protocol, claiming NEAR is a more scalable and developer-friendly alternative to Ethereum ($ETH). An alpha version of the Flux Protocol is now live on the NEAR testnet.

Why it matters:

• Flux's pivot indicates Ethereum's prowess in composability and developer tools may not overcome its limitations in scalability and computational costs for specific use cases. Read more about the benefits of smart contract platform composability in our Pro Research report on Compounding Utility Through Composability.
• NEAR is one the of the soon-to-launch, venture-backed Ethereum competitors vying for developer mindshare, and Flux's transition suggests other developer teams could follow suit. But the NEAR ecosystem still requires more testing and development to be considered a competitive alternative.
• Flux utilizes NEAR's Ethereum bridge, which enables NEAR-based dApps to connect with Ethereum smart contracts or call specific functions. The cross-platform bridge shows new platforms, and its applications, prefer to leverage Ethereum's existing infrastructure to optimize its functionality and bootstrap its user base.