For Eatonomy, Stellar provides the perfect scalable environment to base the TRE token on, due to its unprecedented transparency, traceability, and efficiency. As a loyalty rewards token, fast transaction times and low fees are essential to the success of the TRE token as a realistic alternative to the currently existing, highly restrictive rewards programs.
Stellar’s Consensus Mechanism was developed by Stanford Computer Science Professor David Mazieres and was designed to closely match business arrangements in real life — facilitating the deployment of a secure system that specifically enables fast and frictionless movement of money between diverse financial systems and currencies. To ensure decentralization, the Stellar Consensus Protocol utilizes the Federated Byzantine Agreement (model). While Ethereum remains to be the most popular blockchain for token sales, the Stellar Network provides greater security, performance, efficiency, and value.
Below we will explain the main reasons why our team made the decision to base the TRE token on the Stellar Platform instead of on Ethereum, or any other protocol. We primarily draw comparisons with Ethereum as it is the de-facto platform currently being used for the development of blockchain ideas.
On the Stellar Platform, smart contract operations can be combined to create fairly complex and sophisticated behaviors that fulfill the TRE token’s needs. For a payment system and means of exchange, Stellar provides broad functionality while restricting threats by design.
What is Stellar?
Stellar is a non-profit open-source technology that primarily serves to promote financial access and inclusion across the globe by connecting banks, payment systems, and people around the world. In essence, it brings the world together by increasing interoperability between diverse financial systems and currencies.
The Stellar platform is a payment infrastructure that allows people to move money quickly, reliably and at almost no cost. Stellar also has a built-in distributed exchange which allows people to not only buy and sell currencies like they would in a typical foreign exchange, but also allows them to seamlessly convert from one currency to another during cross border or cross currency transactions.
These same features are what makes Stellar a very strong platform for token issuance as well. When compared to other popular platforms like Ethereum, Stellar is comparatively a much stronger contender to issue the TRE token on, due to four very important factors — Performance, Liquidity, Security, and Ease of Use.
Performance/Low Transaction Costs
Stellar provides significantly cheaper transactions than other protocols, including Ethereum. Currently, the median gas price for Ethereum transactions is about 20–30 cents. To put it into perspective, this is almost the same (and even more than) credit card transaction fees! In comparison, transactions on Stellar cost a fraction of a cent and there is no gas fee for computations. It costs only 1 cent to make 100,000 transactions on Stellar. This makes Stellar a significantly faster and cheaper platform than Ethereum.
Fast Transaction Settlement Times
Stellar settles transactions much faster than other protocols like Ethereum. While Ethereum takes a median of 3–5 minutes to secure and confirm a transaction, Stellar takes a median settlement time of only 3–5 seconds. In tests with IBM, Barclays, and Deloitte, Stellar has been proven to safely handle up to 1,000 operations per second, while Ethereum can only handle up to 15. This makes the Stellar platform a much more efficient platform that can actually be utilized in real-world use cases.
Immediate Liquidity of Tokens
New tokens are being launched every day. As the number of tokens being issued in the market increases exponentially, the demand to be listed on third party exchanges increases, resulting in constantly growing competition for exchange placement. Existing exchanges often do not have the capacity to list all the tokens being issued. Typically, the wait times until a token is listed are very long, and the fees to get listed are constantly increasing. This can be a great hurdle for many companies, for whom the ability to trade assets on an exchange is crucial for the provision of liquidity.
Stellar has its own built-in decentralized exchange
Stellar’s built-in exchange — also known as the Stellar Decemtralized Exchange (SDEX)- takes the fore-mentioned uncertainty away, and completely removes the token-issuers’ dependency on third party exchanges. In fact, using Stellar, the TRE token can be listed immediately as it is issued. This means that the TRE token can safely and conveniently be discoverable and transferable right after the ITO, something that is not possible for tokens developed on Ethereum.
Tokens can be listed on 3rd party exchanges + SDEX
There is a popular misconception that Stellar tokens cannot be listed on third party exchanges. That is simply untrue. In addition to being listed on the SDEX, tokens that are issued on the Stellar Network can also be added to third party exchanges like Binance, Bittrex etc.
Token Issuers can customize tokens
Unlike tokens issued on Ethereum, Stellar tokens can be customized to ensure consumers are protected, laws are being abided, and to ensure that AML regulatory requirements are being met. The platform features a suite of tools that allow token issuers to customize tokens to satisfy Securities, Consumer Protection and Anti Money Laundering regulatory requirements. This includes the ability to white list potential contributors, or revoke access to tokens in the event of exploits and misuse.
Greater security compared to other popular protocols
On the Stellar Platform, smart contract operations can be combined to create fairly complex and sophisticated behaviors that fulfill the TRE token’s needs. For a payment system and means of exchange, Stellar provides broad functionality while restricting threats by design.
Stellar features an expressive but purposely limited system for smart contracts that is not Turing complete. This minimizes the attack-surface available to hackers and other malicious actors, since it mitigates the chances of developers writing exploitable code. In fact, Stellar purposely restricts complex smart contract capabilities to ensure greater efficiency and security, at much lower transaction costs. This makes it an ideal platform for applications that do not require the full generality of Turing-complete smart contracts.
In contrast, Ethereum supports a Turing-complete programming language, which means that developers can write any type of complex and sophisticated smart contracts. However, the problem with this flexibility is that it allows for developers to write exploitable code, due to the very broad attack surface. These types of exploits have taken place many times over the past few years, where hackers have stolen millions of dollars by exploiting vulnerabilities in Turing- complete smart contracts — even those that had been audited by the community. The majority of tokens actually do not even have complicated enough needs that would require the use of a complex smart contract! In these scenarios, it is unwise to expose the token to increased risks and exploitations. In addition to the increased risks, a large part of why the Ethereum network is as slow as it is, is because each node has to process all these complex smart contracts, which did not necessarily need to be processed on the block chain level in the first place.
In a nutshell, the Stellar Platform is simple yet practically expressive, and offers significantly greater security and a lower attack surface compared to Ethereum — all at fast transaction speeds, and at virtually no cost. As a loyalty rewards token, fast transaction times and low fees are essential to the success of the TRE token as a realistic alternative to the existing, highly restrictive rewards programs — and we strongly believe that the Stellar Protocol fits the bill perfectly.
Hope this helped understand why we chose to base our rewards token on the Stellar Blockchain Protocol. Any burning questions? Let us know!
⭐ More information on Eatonomy⭐
🌐 Website: www.eatonomy.ca
📃 Read our Whitepaper HERE
Check out our BitcoinTalk ANN Thread
Still have questions? Don’t hesitate to reach out at hello@eatonomy.ca!
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Ethereum Address:0x6E7abE1d59BF334c13B5b0426E091Da269475072
Ethereum Address:0x6E7abE1d59BF334c13B5b0426E091Da269475072
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