Use the Stellar for ICO

nnnIn the current situation, ICO is mainly in the ether square to complete. Although the APF has some advantages to carry out this activity, but its drawbacks are obvious, for many organizations, the use of the ether square ICO bear the risk than its benefits are greater. Fortunately, other communities are also trying to figure out how to bring better models for ICOs. Stellar wrote a blog post to analyze their own network in the ICO has what specific advantages. This information can make the hope that ICO organizations to conduct more in-depth thinking, choose the most suitable for their own programs.n
nnTranslated by: Inan
nSince this year, we have seen some organizations raise more than $ 1.3 billion through first-time tokens (ICO). While there are various regulatory, financial, and technical issues in the current ICO field, it is undeniable that the ICO model facilitates the growth of a strong de-centric network and the mainstream adoption of block chains. In addition, the ICO model promotes global financial Pratt u0026 Whitney development by enabling financing, investment and network participation in democratization.n
nOften, ICO tokens are distributed on the ethernet network in the form of ERC20 tokens. The ERC20 Token is easy to distribute and can be customized using the etherfront private contract language. However, some recent events have highlighted and expanded the drawbacks of such networks, such as the slow processing of the network during the ICO and the increasing cost of gas (in accordance with the French standard) required for trading and smart contract execution. In addition, many organizations only need basic tokens, but they do not take advantage of their many advantages when taking the risk of a complete programming language in the Tile Square.n
nWhile the Etherhouse has the most expressive programming capabilities, we believe that Stellar is the best choice for ICOs that do not need sophisticated intelligence contracts. Stellar’s main goal is to promote tokens and transactions, especially to the legitimate commitments of well-known organizations, such as claims for real-world assets or legal currencies. First, we have an easy-to-use built-in tokens release system that anyone can use. Second, Stellar provides built-in tokens, which can support multi-signature authorizations, generate dividends, limit who can hold tokens, and so on. The most important thing is that Stellar also has a centralized exchange that can carry out real-time transactions on any Stellar network tokens without the need for third-party exchanges. This means that the token can start trading from the day of issue.n
nStellar Fundamentalsn
nConsider several reasons why ICO is used with Stellar:n
n1) comes to the center of the exchangen
nThis year has issued thousands of new tokens. Every kind of tokens have to find their own shelves. Users to register in some exchanges account to buy a specific token, of course, a lot of tokens simply can not exchange.n
nStellar supports effective trading from the very beginning. Any token created on Stellar can be traded immediately through its local supply mechanism at Stellar’s centralized exchange. Organizations do not need to rely on third-party exchanges (such as Bittrex and Poloniex) shelves and buy their own tokens. This means that you will know more about your own token, because you no longer need to rely on third parties.n
n2) safern
nWhile Stellar does not have strong performance in the Ether Square, its simple trading model reduces the risk of the application, which can improve the integrity of applications that do not require Turing’s complete intelligence contract. In a nutshell, Stellar’s atomic multi-operational trading model can create more auditable code, limit its uncertainty, and reduce the risk that bad people will exploit program vulnerabilities. In addition, Stellar may choose to allow the issuer to retain the ability to freeze it while the token is being abused. Therefore, its recovery does not need to rely on the verifier or miners to perform abnormal state changes to protect.n
nAnother security feature is what the organization can choose which nodes can verify their transactions. This is useful if there are malicious verifiers on the network, or if the organization’s token represents some real assets that can not be redeemed for double exchange. For example, suppose some of the token represents a pound of gold. If the tokens are issued on an ether square or bitcover, then any bifurcation may lead to confusion and double exchange risk. However, on Stellar, an organization can predefine which validators have a “legal” version of their tokens.n
n3) Custom ICOn
nNo two companies are the same, there will not be two ICO is exactly the same. Stellar implements tailored ICOs by providing basic concepts such as accounts, tokens, supply (which exchange one by one token) and atomic operations consisting of multiple operations. Users can combine these simple concepts in a complex way to achieve a variety of behavior, similar to the use of simple LEGO to form a specific structure. For example, dividends, bonds, custody, collateralized debt, inflation and lightning networks can be made on the Stellar network. In view of the original support for atomic trading, it is very easy to encode the information “if B sends to C, then send A to B”.n
nThe use of Stellar allows for faster development because it already has built-in common ICO functions such as creating a token and listing a whitelist of qualified participants (for example, enforcement of KYC requirements and restricted activities in certain jurisdictions ). Stellar is a very good choice for organizations that have KYC requirements.n
n4) more cost-effective and fastn
nAs the value of the currency increases, its calculations and transactions are more expensive. Immediately from the current price (200-300 US dollars) point of view, gas prices are high.n
nStellar does not need gas to execute the program, only a very small transaction fee (0.00001 XLM) to prevent the intention of the user crazy to add transactions to the network.n
nStellar’s trading hours have a median of 5 seconds, compared to 3.5 minutes on the tower.n
nStellar vs. Ether Squaren

nin conclusion n
nStellar is an excellent choice for any ICO that does not require Turing’s complete smart contract, which can benefit from the immediate emergence of the secondary market. For more information on technical instructions, see the Stellar Developers’ Guide. We also intend to publish tutorials and more technical guidance in the coming weeks. Finally, if you are interested in testing and developing the Stellar network, you can join the next Stellar Build Challenge to win the currency!n
nThe last thing to note is that Stellar’s mission is to promote the development of financial Pratt u0026 Whitney. To this end, we welcome the positive impact of the project to explore Stellar, as a further in the world to participate in financing and block chain use platform.n

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