All smart contracts are based on Ethereum - true or false?
Smart contracts are most often associated with Ethereum. Based on the research conducted by TFH AI analysts, most blockchain projects prefer the Ethereum platform. It is a gold standard in the world of smart contracts and has the biggest capitalization among other platforms, but it’s not unique and has its shortcomings. Most ICO projects choose Ethereum, because this payment platform easily generates tokens, using complex smart contracts, and guarantees the quality of the system. Ethereum makes it possible to easily create any program by just creating a smart contract with certain rules.
The main advantage of Ethereum smart contracts is flexibility - absolutely any idea can be programmed into the code, and then implemented on the blockchain. As evidence, we see hundreds of successful ICO projects using the ERC20 token standard. However, this standard has some serious bugs which have already led to major losses in the industry. Explaining briefly, ERC-20 assumes two ways of performing a token transaction:
1. transfer: Send tokens to someone’s address.
2. approve + transferFrom: Deposit tokens to a smart contract.
But what if you use transfer to send tokens to a smart contract by accident? A smart contract will accept this transaction, but the wallet will be empty. So many companies have already lost their money this way. But despite these vulnerabilities, Ethereum is still considered the most reliable platform for the blockchain. And it can also be said that the main reason for such errors is the human factor.
But ICO projects are starting to use other platforms such as Neo, Stellar, NEM, Hyperledger Fabric, etc. The tokens released on these platforms are not worse than those on the Ethereum, and sometimes it is even cheaper and easier to create smart contracts on these alternative platforms. Neo and Stellar, for example, are capable of handling more transactions per second. Stellar processes transactions on average for 5 seconds, Neo does the same for 15 seconds, while Ethereum makes transactions only in 3.5 minutes.
Hyperledger Fabric likes to call its smart contracts ‘chaincode’. Hyperledger Fabric itself was written in Go language, so its smart contracts support this language as well. Benefits? Golang is a very efficient language with a fast compile time, which allows you to quickly create complex programs. The project found widespread use in government blockchain projects, such as the China Construction Bank, the public transport blockchain project in Malta and state blockchain projects in the UAE. Sberbank also conducted the first blockchain transaction on the Hyperledger platform.
If there is no need to create complex smart contracts, then it is not necessary to create projects on the Ethereum platform. Many ICOs choose other platforms to stand out among others and thus, attract media attention. Ethereum is no longer a monopolist in this market. The type of platform doesn’t affect the quality of the project. It is worth considering what is more important when choosing blockchain platform: complex smart contracts or transaction speed.