StellarX is an open peer-to-peer market place that was launched to support cryptocurrency, fiat, bond, and commodities among other things for trading. It is user-friendly as well as free, fast and secure platform. Trading on StellarX is to happen without the interaction of middlemen, not even miners. It will enable trading from wallet to wallet and ensure that the users remain in control of their private keys. The platform is still in development but is launching soon.
The team behind StellarX recently published a blog post titled ‘The Great Filter: Why You Shouldn’t ICO on Ethereum.’ This comes after they release a research on Ethereum and its use cases earlier in the year. The post dives into why Ethereum has for a long time been used for the wrong purposes. It goes ahead to make it clear that, Ethereum is not a bad technology, however, it is often applied by entrepreneurs on the wrong projects.
“A reckoning is coming, something like the Great Filter: …where high costs and slow performance cull almost the entire ecosystem, and unless your project is specifically adapted to Ethereum’s strengths, it will die alongside so many others,” the post reverberates.
The writer of the blog post, Christian said that he and the team put a lot in terms of funds and time carrying out the research on Ethereum. They refuse to be like everybody else who makes their arguments using unoriginal content, copied from whitepapers that are virtually untested.
Highlighted Strengths and Weakness of Ethereum
Ethereum according to Stellar X is “a distributed programming platform — scripting software for autonomous organizations and ownerless apps.” While the founder, Vitalik Buterin defines the project as:
“A modular, stateful, Turing-complete contract scripting system…our goal is to provide a platform for decentralized applications.”
StellarX says that Ethereum is perfect for building a distributed computer program, for instance, a program that is not centralized and has no sole owner. Augur (REP) is given as an example of such a program because the platform required an autonomous, without sole ownership system that arrives at decisions based on real world events. And with this they are able to navigate around the regulations and operate a gambling platform.
However, the team says that for the majority of blockchain companies have no business executing smart contracts in order for them to carry out their core mandate. Neither do they need to circumnavigate the legal system. These companies need to issue tokens and simply process transactions. StellarX team notes that this is the exact point where Ethereum is bound to let these blockchain companies down especially if their reason for building on the platform is to roll out a digital asset that will be used to trade while ensuring minimal cost and real-time operation. Christian says that Ethereum would be the wrong choice in this case because:
“It’s slow and it’s really f’ing expensive, and it fails to act like you want in both the “one account doing a lot” and the “many accounts doing a little” cases.” He continues to say “Ethereum queues transactions on a per-account basis, and yet miners don’t prioritize transactions by wait time…The result, for high-volume accounts, is an ever-increasing transaction lag.”
The research findings cannot be summarized in less than 600 worlds. However, you can read the rest of the research in the StellarX blog post here. It is vital to note that Christian says that more than 50% of all the ICOs that go under after the crowdsale are usually built on Ethereum. This explains that these projects hit the Great Filter. Christian concludes by saying:
“But if you want to build a business that sticks around — if you plan a typical user-to-user service and don’t need to tie up your business logic in a smart contract — if you plan to issue a digital asset and you plan to transact at high volumes as a core part of your strategy, pick a platform that is optimized for that. Do what we did, and build on Stellar.”