StellarX Co-Founder Details Why ICOs should not be kept on Ethereum in a new research paper



A co-founder of StellarX has published a new research project that describes why ICO should not be held on the network Ethereum .

& # 39; The Great Filter & # 39;

The blog post gives football stating that Ethereum is not a bad technology, but entrepreneurs have applied the platform to the wrong applications. The co-creator, who remains anonymous beyond the Christian name, believes that if these projects do not specifically adapt to the Ethereum's strengths they will end up perishing.

According to the report, all data was collected by the co-creator and his team, who spent $ 13,000 with a "scaled" app for 10 hours on the network Ethereum . Furthermore, all team work, results and methodology can be found on their Github. Here are the results:

Ethereum Strengths

According to the report, Ethereum is a great choice if developers are building a distributed computer program that does not need to a single owner or a centralized decision-making apparatus.

In addition, the co-founder states that most blockchain companies are trying to issue digital tokens and process transactions, which is where, he believes, Ethereum will allow users down. For example, if a company wants to issue a token, allow users to exchange and experience transactions in real time, the StellarX team assumes that Ethereum is the wrong choice.

Ethereum's Weaknesses

According to StellarX co-founder:

"It's slow and it's really expensive, and it can not behave as you want in both the lots and lots of accounts accounts that make a "case".

Problem 1: user experience

The first problem that the StellarX team discovered was the Ethereum method for queuing operations, considered depressing for enthusiastic users Christian continues explaining the complexity of the queuing process Ethereum in general comparing it with the experience of users of the system "please take a number" in places like the DMV.

A difference of the people who work at the DMV, however, the miners who run the network Ethereum are not responsible for the next "number" online.

According to the co-creator:

"Miners like these will leave space to the unused space first fill it with something from your tail. "

The co-creator goes into the details of the tests they performed on Ethereum but eventually it reduces him to the user's experience.More people use the app Ethereum the slower it is, this is exactly what happened to Cryptokitties, the first blockchain-based game to be launched on Ethereum which completely stopped the system and caused a backlog of nearly 30,000 transactions

Christian explains that for his tests, after just three hours, the transactions now require eight hours to confirm.This performance problem, he says, if a fundamental part of Ethereum . Casper and sharding are promising but will be complex layered solutions on The almost "maximal" complexity of Ethereum .

The co-creator explains that a skyscraper is usually built on fresh rock , not on another skyscraper. This is the way the StellarX team describes Ethereum sizing solutions.

Problem Two: Cost

Cost is another problem that Ethereum addresses, according to StellarX. The costs [per utente] of Ethereum for example, increase rapidly when adding more accounts, with a price spike of 7,000%, in some cases, when more users try to use the network on a number of

An experiment StellarX, which costs $ 1,445 for an hour when prices of Ethereum's gas were low, the team performed several basic tests that completed 8 transactions per second. At that rate, those basic tests would cost $ 12.6 million a year.

The team then compared these transactions with the traditional PayPal model and with a model in which the company was built on Ethereum . If this was true, StellarX concluded that 21% of the company's net income in 2017, $ 380 million, would go to Ethereum network feed.

StellarX solution?

While over 50% ICO projects launched on the Ethereum network have completely disappeared after token sales, it is not surprising that the StellarX co-founder recommends Stellar's network as a solution.

Explain:

"It is not Ethereum's fault is that the developers are asking the technology what it should never have provided.It's people chasing last year's ICO dollars, regardless what the right instrument is for. Ethereum's problems all start with misguided entrepreneurs, not become another one of them. "

The co-founder concludes that if developers and entrepreneurs want to" build a business that is around ", should build on the Stellar network, which claims to be optimized to emit digital assets and manage high volume transactions.

Cover photo by Christa Dodoo on Unsplash

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