Stellar (XLM) vs Ethereum (ETH): Real Proof Lumens are Better than Ether?
Stellar Might Be Greater Than Ethereum, Here Are A Few Reasons Why
Ethereum and Stellar have a few things in common. Much of the success achieved by Stellar XLM and Ethereum ETH have come from their co-founders. Ethereum was the brainchild of Vitalik Buterin. He began it in 2014 when he was just 19 years and had his major break when Coinbase listed it in 2016. Jed McCaleb, the co-founder of Stellar has, on the other hand, founded a few more companies before settling on Stellar.
Ethereum was specifically designed for creating smart contracts and it remains the most popular platform for this. However, Stellar has been proven to be better at this. For starters, a team from the National University of Singapore found out that Ethereum was more vulnerable to attacks and their smart contracts were easy to manipulate. According to experts, this is because the contracts are flexible and this makes them vulnerable.
Stellar has seized this opportunity and developed Stellar’s smart contracts. Although these smart contracts are less flexible, they are safer and more reliable than Ethereum’s. Stellar has also gone a step further to ensure security by ensuring that it uses authentication constraints and encryptions.
The transaction fee on the Stellar network is considerably small when compared to that on the Ethereum network. There are two values used to calculate fees on the Stellar network: Base fee (0.00001 XLM) and Base reserve (0.5 XLM). The fee for a transaction is the number of operations the transaction contains multiplied by the base fee. This means that for the fee to total 1 XLM, it would have to contain 100,000 transactions. The cost of 1 XLM right now is $0.22. This is still cheap on the Stellar network.
One factor that truly differentiates Stellar and Ethereum is KYC/AML compliance. Startups that prefer to use a blockchain that is KYC/AML will have to use Stellar. Tokens built on the Stellar blockchain will only be traded between KYC/AML approved addresses. The blockchain also follows the established financial regulations, accounts proven to be owned by a terrorist are frozen. Ethereum ETH does not have these restrictions.
Summing it all up, the Stellar network is a better candidate for DApps that require a higher throughput and lower transaction fees. Ethereum, on the other hand, has enjoyed the spotlight and perhaps this is why entrepreneurs keep using the platform for all the wrong purposes.