Stellar is becoming a popular blockchain for ICOs as Ethereum struggles to scale. Initial Coin Offerings (ICOs) have blown up in popularity over the last few years, with over 430 ICOs raising $5.6 billion last year alone.
Given that recent studies show the failure rate is a staggering 50 percent, it is important to track any emerging trends that could possibly affect this success rate. One trend that has caught the eyes of developers and investors alike is the rise of Stellar (XLM) as the blockchain of choice for new projects to build on.
Currently, Ethereum is the go-to for ICOs, with over 1200 projects choosing the Ethereum blockchain to date. However, the projects that run on top of Ethereum, which use the ERC-20 standard, have suffered through significant transaction backlogs and pendulum-like swings in fees. As you can imagine, this is not ideal for developers.
When you compare the Ethereum and Stellar protocols, you can understand the appeal of building on the Stellar network. In its current state, Ethereum’s average transaction confirmation time is around 10-15 minutes, whereas Stellar’s is three to five seconds.
What’s more, Stellar’s protocol is able to conduct over 3,000 transactions per second compared to Ethereum’s seven per second. Here are a few other notable features of the Stellar platform: While Ethereum is hoping to solve their scaling issues through innovations like sharding or Plasma, Stellar has quietly begun to attract higher quality ICOs. Read more from sludgefeed.com…
thumbnail courtesy of sludgefeed.com