Chaineum, reportedly the first French ICO boutique, and Lightyear.io, an organization that supports partner activities for Stellar, a Silicon Valley-based nonprofit open source blockchain network, have announced a partnership to collaborate in the ICO space. Through the partnership, Chaineum will use the Stellar network to support some of its upcoming ICOs.
“Stellar is an excellent choice for any ICO that does not require Turing-complete smart contracts and can benefit from the immediate creation of a secondary market,” averred Chaineum CEO Laurent Leloup. “First, there is a simple, easy-to-use built-in token issuance system that is accessible to anyone. It also features a decentralized exchange where any Stellar network token can be instantly traded without relying on a third-party exchange to list the token.”“Stellar is an excellent choice for any ICO that does not require Turing-complete smart contracts and can benefit from the immediate creation of a secondary market,” averred Chaineum CEO Laurent Leloup.Click To Tweet
Founded by Leloup, Chaineum provides a range of end-to-end services to companies and international startups developing with this new funding mechanism. Chaineum is preparing 8 ICOs by the end of 2017, including including NaPoleon Crypto, for European, North American and Asian companies, with a potential cumulative amount of €200 million.
“The ICO model promotes global financial inclusion by democratizing fundraising, investment and network participation,” explained Lightyear.io cofounder Brit Yonge. “We’re looking forward to working with Chaineum to help entrepreneurs, who are working on positive-impact projects to explore Stellar as a platform to further global participation in fundraising and blockchain usage.”
Stellar blockchain highlights include:
- Stellar is based on a consensus algorithm rather than mining which translates into transactions confirmation within seconds.
- Transactions on the Stellar network are nearly free: currently, 1 USD covers 2.5 million transactions.
- Stellar facilitates transactions in a variety of currencies, including both fiat and digital.
Depending on hardware and network configurations, a conservative estimate of Stellar’s processing rate is 1000 operations per second.
- The median transaction time on Stellar is 5 seconds, compared to approximately 3.5 minutes on Ethereum.
Traditionally, ICO tokens have been issued on the Ethereum network in the form of ERC20 tokens. ERC20 tokens are easy to issue and are infinitely customizable using Ethereum’s smart contracting language. Recent events have highlighted and exacerbated some weaknesses of the network, according to Chaineum, including slow transaction processing times for the network during ICOs and increasingly expensive gas prices (by fiat standards) for transactions and smart contract execution.
Stellar aims to facilitate issuing and trading tokens, especially those tied to legal commitments by known organizations, such as claims on real-world assets or fiat currency. Stellar aims to provide the following ICO benefits:
- Stellar offers a simple, easy-to-use built-in token issuance system that is accessible to anyone and can support multi-signature authorizations, generate dividends, limit who can hold tokens, impose lockup/vesting periods, etc.
- Stellar features a decentralized exchange where any Stellar network token can be instantly traded without relying on a third-party exchange to list the token which means newly issued tokens can be traded on Day 1. Any token created on Stellar can be bought and sold immediately on Stellar’s decentralized exchange by means of Stellar’s native offer mechanism. An organization does not have to rely on a third-party exchange like Bittrex or Poloniex to list or make the market for them.
- Stellar’s model of atomic multi-operation transactions leads to more auditable code, limits uncertainty, and decreases the risk of harm from bad actors who may exploit program vulnerabilities.
- Stellar optionally allows issuers to reserve the ability to freeze tokens in the event there is misuse.