Stratis vs Ethereum: Similarities and Differences

Date:

June 25, 2018

Stratis vs Ethereum

There are about a thousand of cryptocurrencies in circulation with hundreds of more tokens in the process to be released. It may seem strange to compare a relatively unknown coin Strat from Stratis project with such as well-established and widely used coin as Ether. Especially if you consider the drastic difference in their valuation, that one of Strat hardly exceeding $7 and Ethereum remaining at strong $680 despite all recent ups and downs at the cryptocurrency market.

THE IDEA

The vision of the Ethereum blockchain was to enable developers across the globe to benefit from distributed programming of blockchain which will boost the productivity of their advanced applications for the range of purposes, from finance to education and everything in between.

The ambitious idea of Stratis was to overcome challenges that prevented the adoption of Ethereum by financial corporations. Stratis pioneers a blockchain-as-a-service (BaaS) concept, as it was developed for providing blockchain solutions and smart contracts on enterprise level. Using Stratis corporates can develop their own applications and interconnect them to form in-house blockchains that can be further linked to the main blockchain. This gives the corporates the must-wanted flexibility so they can better fit the blockchain to their one-of-a-kind business requirements and strict regulations in this industry.

THE HISTORY

Ethereum was presented to the public both as a platform and a cryptocurrency built on the technology. Initially, it was envisioned as a massive computer where developers unite their calculating powers to solve global computing needs. Founded by Russian-Canadian programmer Vitalik Buterin in 2015, the project has quickly outgrown Bitcoin regarding versatility and transaction speed.

Stratis is a British fintech startup founded by Chris Trew who run a successful ICO in 2016 and raised just over half a million pounds for the development of his project. The team awarded investors more than 80% of tokens, and the rest is used for project growth, business development, and marketing. During the ICO Stratis rewarded large-scale investors allowing holders of more than 250 thousand Strat tokens to stake their shares of the project for privacy protocol functionality and earn even more coins in the future.

THE TOKEN

Using Ethereum’s token Ether it is easy to start a brand-new token that will be used in a new solution and to code their own smart contracts. Applications can be anything from blogs to legal contracts, voting systems, and more complex constructions such as virtual realities in gaming.

Stratis coin is called Strat and it is gaining popularity. Similar to Bitcoin it is used inside the solution and also can be traded on exchanges. It is listed on Abra exchange along with some of the newly “minted” coins allowing members to buy, sell and store the token. Considering that the market capitalization value of Strat is growing exponentially, exceeding at the time of writing USD 750 thousand, this currency is poised for growth, and it’s a good time to consider investing in it.

But unlike Bitcoin and Ethereum Stratis operates on a different principle. Rather than a blockchain platform for everyone to use and everyone to abuse, it’s a comprehensive suite of solutions that allow businesses to implement blockchain and private transactions in their IT infrastructure.

PROGRAMMING LANGUAGE

To build Ethereum Buterin and his team used a new programming language called Turing Complete. Applications on the platform run on another custom-made language called Solidity which resembles Javascript and some of the more complex languages.

Stratis is built using a commonly used programming language C++ and blockchain applications run on Microsoft .NET network. The company believes that it’s a lot easier to find a development firm that has a talent with knowledge of this language and this popular network. This down-to-earth approach is a unique selling point in the cryptocurrency market since many startups tend to invent a solution to a problem that doesn’t even exist or to offer such as an exotic solution that not many IT experts would be able to understand, not even attempting to embrace. A familiar language and a familiar network will improve the scalability and will make applications built with Stratis easier to implement and maintain.

As a result, the solution will become more scalable and applicable to many industry-specific business needs, although as a suite of blockchain solutions Stratis was built primarily for financial institutions with their set of challenges in mind.

THE PLATFORM

Ethereum is powered by Ethereum Virtual Machine (EVM which is how the first computers were called in Russian). A network of nodes which fulfill instructions and store data from distributed applications. Some of the characteristics of blockchain are near-zero transaction speed and high reliability of the system, so that even if half of the nodes goes down due to a system fault, the blockchain will remain to be operational since the same data is stored at all nodes.

Stratis is offering a set of pre-programmed contracts that businesses can mix and match to satisfy their requirements. These smart contracts do not require extensive technological efforts from the company to implement thanks to the use of a popular programming language. Contracts are tested, verified by a third-party audit, and provided as complete packages which is an attractive feature for a time-strapped business. The company says that the fully custom-built solution that incorporates the blockchain and private “sidechain” complete with smart contracts can be unfolded at enterprise domain in as little as ten minutes. The company also offers consulting services helping businesses recognize the benefits of having private blockchains and using blockchain-as-a-service solution customized in-house in a corporate environment.

THE PERFORMANCE

Ethereum has laid down the blockchain principles which can be used outside of financial transactions but as a technology, it is very power-consuming and has limitations when it comes to privacy of users or their interactions.

Stratis has been developed to process more requests than Ethereum. Developers claim it can handle up to 20 thousand transactions in a second which is higher than transaction speed of Visa card payment system. At a contrast, Ethereum is able to process at the highest productivity rate only 25 transactions per second. Its speed and productivity can be dramatically improved by the implementation of such processes as sharding but even then it barely reaches the speed of Stratis. Sharding is a complex process that involves splitting the blockchain into numerous “shards” or sections so that the transaction gets verified faster and the scalability and speed are becoming more competitive. But the technological advantage that Stratis gained thanks to the use of a different principle and the resulting difference in speed when comparing Ethereum vs Stratis is clearly not in favor of the cryptocurrency pioneer.

To take the dissimilarities even further, Stratis claims that the range of its uses is endless. For example, it allows streamlining of the record keeping in a medical environment which can improve the patient’s trust and speed up the clinical trial research. The private blockchain in legal industry can create a network of legally binding contracts that cannot be tampered with by any party. This could also be useful in identity and trust management because the reputation of a business partner or a credit history of a loan applicant can be checked instantly. In insurance industry blockchain can solve the problem of insurance fraud and misrepresentation. For personal data protection purposes, Stratis has an identity management application which meets the requirements set by KYC compliance protocol. Public transportation, education, retail and of course financial technology industries are just some of the examples of usability of private blockchains or sidechains.

THE FUTURE PLANS

Ethereum is a well-tested, well-known platform that has already found uses in many applications. The price of its token is growing in a stable mode and the future releases hold promise to make blockchain technology more accessible for non-tech users.

There’s a lot of work ahead for Stratis which is still in a testing mode. The company plans to improve its privacy protocols and run another ICO to grow its community. There are several applications in development, such as identity verification tool for Apple iOS. The company is working on its selection of verified and audited smart contracts and private blockchain ready to be offered to the finance crowd in London City and beyond.

We can expect a lot of good news both from Ethereum which plans to unveil its “blockchain for the masses” release later this year if they manage to meet the deadline. There’s a lot of intriguing benchmarks to be met by Stratis which has to meet their promises to bring the power of blockchain to real-world uses.