In this digital era, the techno force is approaching to run the world. With the incoming of Blockchain, ICO and now STO, the competition among these compelling by-products of technology is on the rise.
Before digging into the platform comparison of Stellar vs Ethereum, let’s look forward and discuss the similarities and dissimilarities between ICO and STO.
ICO’s and STO’s both are invariably interchangeable terms as they both deal in the exchange of utility tokens and assets. However, the major difference between ICO and STO lies under the underlying statement for the exchange of digital tokens or assets.
There has been a huge market scope for investing in ICO’s and STO’s for your next Blockchain project. However, the choice of the platform makes all the difference. In this blog, I am going to talk about the two very popular and competing platforms Stellar vs Ethereum.
While Ethereum has been the most preferred platform for token exchange for a long time. The name is synonymous with token customization, platform development and the launch of numerous ICO’s.
However, Stellar is no lagging behind keeping STO’s in the picture. It has been implemented by Germany’s first STO, Bitbond, and VMC, which has just launched an STO in the Netherlands.
Is this going to solve the battle of Stellar vs Ethereum? Think again? Since both the platforms share the purpose of development, let’s go ahead and rent a coder to know about the many offerings that can be deployed using Stellar and Ethereum. For a more detailed comparison between the features and behavioral overview, let’s begin the post!
During the course of this post, I am going to discuss the fundamental differences which you can consider while choosing your next Blockchain Platform between Stellar vs Ethereum:
Development Platform
As a development platform, Ethereum offers more flexibility than Stellar. Ethereum has been in the business for long and it has been adopted by major giants in the business. Ethereum Virtual Machine smart contracts being Turing Complete, allows programmers and developers to explore virtually unlimited possibilities.
So, if you are looking forward to developing a complex application, with more computational capabilities, then Ethereum would be a viable option for you. On, the other hand, if you are looking forward to developing basic applications and tokens, the simplicity, speed, and cost-effectiveness of Stellar are best suitable. It is important to hire stellar developers when it about the overall value proposition of technology.
Transaction Speed and Cost
Stellar’s inbuilt decentralized exchange plays a pivotal role in this variable and thus it is not tough to say that Stellar has emerged as a winner in the terms of transaction speed and cost. The average transaction processing time for Stellar is 5 seconds. For Ethereum it is 3.5 minutes. This gives Stellar a tremendous advantage over Ethereum. Let jump on to the cost factor now, the transaction processing fee in the Stellar platform is minimal as the user needs not to pay for the third-party exchanges. In both cases, Stellar emerges out to be the winner.
Security and Compliance
By far, Ethereum has been widely accepted for developing smart contracts. Companies are looking to hire Ethereum developers to become successful due to its capability of creating complex decentralized blockchain applications. However, the resulting network congestion, combined with Ethereum flexibility has made it prone to attacks. On the other hand, Stellar being less flexible offers more security features like multi-signature, batching, etc which businesses can use to validate their transactions. Enhanced security features are crucial for STOs, as the tokens represent real-world assets.
One of the prominent reason why ICO’s has garnered popularity for fundraising is due to its capability of jumping off the regulatory compliance which was a roadblock in IPO’s. Though the scenarios are changing and many companies are banning ICO’s and there have been talks on regulating ICO’s. Here comes the major difference between Stellar and ICO which is the KYC and AML Compliance. Ethereum doesn’t cater to this feature.
Startups investing in blockchain will use the KYC/AML arrangement which is possible in the case of Stellar. Such arrangements can be done such that tokens built on the Stellar blockchain will only be traded between KYC/AML approved addresses. Stellar has a provision where accounts proven to be owned by a terrorist are frozen. Ethereum ETH does not have these restrictions.
Liquidity
Liquidity is somewhat confusing when we think about the platform advantages for Stellar and Ethereum. As you must be aware of the fact that Ethereum is the most widely accepted platform for creating custom tokens and most of them are ERC20 tokens and there have been more than enough competent wallets and exchanges for ERC20 for exchange and trade-off.
Still, there are many tokens apart from ERC20 which are being issued each year, all top exchanges charge a lot and it will result in new tokens getting listed on random platforms which become a bane for investors to trade them.
Stellar has tried to reduce this fundamentally as with Stellar as a platform startup need not rely on third-party exchanges to invest or trade-off tokens as it has its own inbuilt Distributed Exchange (DEX) where all native tokens can be listed and available to trade since Day 1 of their STO/ICO.
Fund Raising Capabilities
Let’s try and compare the fundraising capabilities of Stellar and Ethereum. This one is a bit tricky as we don’t know which platform will outperform others as determining the best among the both would require complex equations with multiple variables to solve.
Conclusion
In the blog, I have tried to conclude the best possible outcomes for both the platforms. However, it is tough to say which one is superior to the other? Stellar and Ethereum both have their share of advantages and disadvantages. For a simpler, unsophisticated development solution for STO, you can go forward with Stellar that has lower transaction rates, better speed, and improved security.
The development solutions from Stellar and Ethereum remain simple, faster and easy to implement than those offered by the other development platforms. As far as Ethereum is concerned, it can be utilized for a more complex development application that needs more customization and flexibility with fully scriptable smart contracts.
For more help on blockchain application development, contact a software development company which seeks simplicity. In addition to simplicity, works at a lower cost, deliver at a higher speed, and proves beneficial.
Both Stellar and Ethereum stood out as an exemplary solution for ICO’s and STO’s in their respective scenarios. Both platforms can happily co-exist and attract different types of token issuers.
Before digging into the platform comparison of Stellar vs Ethereum, let’s look forward and discuss the similarities and dissimilarities between ICO and STO.
ICO’s and STO’s both are invariably interchangeable terms as they both deal in the exchange of utility tokens and assets. However, the major difference between ICO and STO lies under the underlying statement for the exchange of digital tokens or assets.
There has been a huge market scope for investing in ICO’s and STO’s for your next Blockchain project. However, the choice of the platform makes all the difference. In this blog, I am going to talk about the two very popular and competing platforms Stellar vs Ethereum.
While Ethereum has been the most preferred platform for token exchange for a long time. The name is synonymous with token customization, platform development and the launch of numerous ICO’s.
However, Stellar is no lagging behind keeping STO’s in the picture. It has been implemented by Germany’s first STO, Bitbond, and VMC, which has just launched an STO in the Netherlands.
Is this going to solve the battle of Stellar vs Ethereum? Think again? Since both the platforms share the purpose of development, let’s go ahead and rent a coder to know about the many offerings that can be deployed using Stellar and Ethereum. For a more detailed comparison between the features and behavioral overview, let’s begin the post!
During the course of this post, I am going to discuss the fundamental differences which you can consider while choosing your next Blockchain Platform between Stellar vs Ethereum:
Development Platform
As a development platform, Ethereum offers more flexibility than Stellar. Ethereum has been in the business for long and it has been adopted by major giants in the business. Ethereum Virtual Machine smart contracts being Turing Complete, allows programmers and developers to explore virtually unlimited possibilities.
So, if you are looking forward to developing a complex application, with more computational capabilities, then Ethereum would be a viable option for you. On, the other hand, if you are looking forward to developing basic applications and tokens, the simplicity, speed, and cost-effectiveness of Stellar are best suitable. It is important to hire stellar developers when it about the overall value proposition of technology.
Transaction Speed and Cost
Stellar’s inbuilt decentralized exchange plays a pivotal role in this variable and thus it is not tough to say that Stellar has emerged as a winner in the terms of transaction speed and cost. The average transaction processing time for Stellar is 5 seconds. For Ethereum it is 3.5 minutes. This gives Stellar a tremendous advantage over Ethereum. Let jump on to the cost factor now, the transaction processing fee in the Stellar platform is minimal as the user needs not to pay for the third-party exchanges. In both cases, Stellar emerges out to be the winner.
Security and Compliance
By far, Ethereum has been widely accepted for developing smart contracts. Companies are looking to hire Ethereum developers to become successful due to its capability of creating complex decentralized blockchain applications. However, the resulting network congestion, combined with Ethereum flexibility has made it prone to attacks. On the other hand, Stellar being less flexible offers more security features like multi-signature, batching, etc which businesses can use to validate their transactions. Enhanced security features are crucial for STOs, as the tokens represent real-world assets.
One of the prominent reason why ICO’s has garnered popularity for fundraising is due to its capability of jumping off the regulatory compliance which was a roadblock in IPO’s. Though the scenarios are changing and many companies are banning ICO’s and there have been talks on regulating ICO’s. Here comes the major difference between Stellar and ICO which is the KYC and AML Compliance. Ethereum doesn’t cater to this feature.
Startups investing in blockchain will use the KYC/AML arrangement which is possible in the case of Stellar. Such arrangements can be done such that tokens built on the Stellar blockchain will only be traded between KYC/AML approved addresses. Stellar has a provision where accounts proven to be owned by a terrorist are frozen. Ethereum ETH does not have these restrictions.
Liquidity
Liquidity is somewhat confusing when we think about the platform advantages for Stellar and Ethereum. As you must be aware of the fact that Ethereum is the most widely accepted platform for creating custom tokens and most of them are ERC20 tokens and there have been more than enough competent wallets and exchanges for ERC20 for exchange and trade-off.
Still, there are many tokens apart from ERC20 which are being issued each year, all top exchanges charge a lot and it will result in new tokens getting listed on random platforms which become a bane for investors to trade them.
Stellar has tried to reduce this fundamentally as with Stellar as a platform startup need not rely on third-party exchanges to invest or trade-off tokens as it has its own inbuilt Distributed Exchange (DEX) where all native tokens can be listed and available to trade since Day 1 of their STO/ICO.
Fund Raising Capabilities
Let’s try and compare the fundraising capabilities of Stellar and Ethereum. This one is a bit tricky as we don’t know which platform will outperform others as determining the best among the both would require complex equations with multiple variables to solve.
Conclusion
In the blog, I have tried to conclude the best possible outcomes for both the platforms. However, it is tough to say which one is superior to the other? Stellar and Ethereum both have their share of advantages and disadvantages. For a simpler, unsophisticated development solution for STO, you can go forward with Stellar that has lower transaction rates, better speed, and improved security.
The development solutions from Stellar and Ethereum remain simple, faster and easy to implement than those offered by the other development platforms. As far as Ethereum is concerned, it can be utilized for a more complex development application that needs more customization and flexibility with fully scriptable smart contracts.
For more help on blockchain application development, contact a software development company which seeks simplicity. In addition to simplicity, works at a lower cost, deliver at a higher speed, and proves beneficial.
Both Stellar and Ethereum stood out as an exemplary solution for ICO’s and STO’s in their respective scenarios. Both platforms can happily co-exist and attract different types of token issuers.