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Stellar (XLM) Smart Contracts More Reliable For ICOs Than The Vulnerable Ethereum (ETH) Smart Contracts

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The cryptocurrencies world was surprised when a team of IT researchers from Singapore and the UK revealed that Ethereum (ETH) smart contracts are vulnerable. Thus, many ICOs started to look for better and more secure alternatives. Now, Stellar (XLM) smart contracts might be the reliable alternative many ICOs were looking for.

Ethereum (ETH) Smart Contract Vulnerabilities

From more than 1 million Ethereum (ETH) smart contract, the before-mentioned team discovered that about 34,000 are vulnerable, while more than 2,300 smart contracts were tagged as highly vulnerable.

And we’re not talking here about hard-to-depict vulnerabilities since the team discovered them in the first 10 seconds of testing.

However, these vulnerabilities were more than enough for some ICOs to start looking for alternative solutions to what Ethereum (ETH) is offering.

Stellar (XLM) Smart Contracts Seem Ideal For The ICOs

As the Stellar (XLM) smart contracts are not as flexible as the Ethereum (ETH) ones, they are, at the same time, less accessible to hackers.

Stellar (XLM) contract are packed with:

  • Multisignature – A safeguard method involving multiple signatures from the parties to confirm a transaction;
  • Atomicity or Batching – Involves multiple operations to perform a transaction verification. It is also a safeguard method that stops a transaction once it has been submitted to the network and one of the operations fails;
  • Sequence – It manipulates a transaction using sequence numbers, making it possible to cancel a specific transaction if an alternative one is submitted to the network;
  • Time Bounds – Set countdowns for the transactions and when a transaction is not fulfilled in the expected time it will be marked as null;

Mobius, for example, is one of the ICOs that uses Stellar (XLM) smart contracts.

Stellar (XLM) Will Go Up If More And More Will Adopt Stellar Smart Contracts

The wide adoption of Stellar (XLM) smart contracts by the ICOs looking for alternatives to the vulnerable Ethereum (ETH) smart contracts will positively impact on the XLM price against the USD.

As we speak, Stellar (XLM) is trading at $0.24, decreasing by 7.85% in the last 24 hours.

In conclusion, since the Ethereum (ETH) smart contracts have been proved to hold vulnerabilities many ICOs started looking for more secure alternatives. Therefore, even though they less flexible, the Stellar (XLM) smart contracts are secure and less accessible to hackers.