Ethereum vs Stellar

Table of Contents

1. Metrics
2. Detailed Comparison
   • Network Performance and Scalability
   • Technical Architecture
   • Economic Model and Costs
   • Smart Contract Capabilities
   • Network Purpose and Use Cases
   • Founding and Leadership
   • Token Economics
   • Development Environment
   • Network Adoption and Usage
3. FAQs
   • Is Ethereum faster than Stellar?
   • Is Ethereum cheaper than Stellar?

Metrics

Detailed Comparison

Network Performance and Scalability

When comparing Ethereum and Stellar's performance metrics, several key differences emerge:

• Transaction Speed (TPS)
  • Ethereum: 27 TPS
  • Stellar: 200 TPS

Stellar clearly outperforms Ethereum in raw transaction processing capability, offering more than 7 times the throughput. This higher TPS makes Stellar more suitable for applications requiring frequent transactions, such as payment systems or remittance services.

• Block Time
  • Ethereum: 12 seconds
  • Stellar: 5 seconds

Stellar's faster block time means transactions are confirmed more quickly, providing better user experience for time-sensitive operations. The shorter block time contributes to Stellar's higher TPS and makes it particularly effective for real-world payment scenarios.

Technical Architecture

Both networks have distinct technical implementations:

• Consensus Algorithm

  • Both networks utilize Proof of Stake (PoS), but with different implementations
  • Ethereum uses a more traditional PoS system
  • Stellar employs the Stellar Consensus Protocol (SCP), a unique variant

• Hashing Algorithm

  • Ethereum: KECCAK-256
  • Stellar: SCP-based hashing

• EVM Compatibility

  • Ethereum: Native EVM support
  • Stellar: Non-EVM architecture

Ethereum's EVM compatibility makes it the go-to platform for traditional smart contract deployment, while Stellar's architecture is optimized for its primary use case of value transfer and exchange.

Economic Model and Costs

The economic aspects of both networks show significant variations:

• Transaction Fees
  • Ethereum: $17.48 average
  • Stellar: $0.0000000085 average

This represents one of the most dramatic differences between the networks. Stellar's near-zero transaction fees make it extremely attractive for micro-transactions and payment systems, while Ethereum's higher fees can be prohibitive for smaller transactions.

• Staking Rewards
  • Ethereum: 3.31%
  • Stellar: 1%

Ethereum offers more attractive staking rewards, providing better incentives for network participants to secure the network through staking.

Smart Contract Capabilities

While both networks support smart contracts, their approaches differ significantly:

• Ethereum

  • Full Turing-complete smart contracts
  • Extensive development ecosystem
  • Supports complex DeFi applications
  • Large developer community

• Stellar

  • Simplified smart contract model
  • Focus on financial operations
  • Limited programmability compared to Ethereum
  • Optimized for payment and exchange operations

Network Purpose and Use Cases

The networks serve different primary purposes:

Ethereum

• General-purpose blockchain platform
• DApp development and deployment
• Complex smart contract operations
• NFT marketplace infrastructure
• DeFi ecosystem backbone

Stellar

• Specialized payment network
• Cross-border transactions
• Currency exchange
• Remittance services
• Financial inclusion initiatives

Founding and Leadership

Both networks have notable founders with different visions:

• Ethereum

  • Founded by Vitalik Buterin
  • Strong focus on decentralized computing
  • Large, diverse development community
  • Multiple development teams and organizations

• Stellar

  • Founded by Jed McCaleb
  • Emphasis on financial inclusion
  • More centralized development approach
  • Stellar Development Foundation leadership

Token Economics

Both networks have interesting approaches to token supply:

• Supply Model
  • Both have no maximum supply cap
  • Different inflation mechanisms
  • Different distribution methods

Ethereum's supply is influenced by network usage and staking, while Stellar's supply is managed through its built-in inflation mechanism and strategic foundation reserves.

Development Environment

The development ecosystems show distinct characteristics:

Ethereum

• Rich development tools
• Multiple programming languages supported
• Extensive documentation
• Large third-party developer community
• Numerous frameworks and libraries

Stellar

• Focused development tools
• Specialized for financial applications
• Clear documentation
• Smaller but dedicated developer community
• Specific SDKs for common use cases

Network Adoption and Usage

The networks have different adoption patterns:

• Ethereum

  • Widespread DApp adoption
  • Large user base
  • Extensive integration with other blockchain projects
  • Strong institutional interest

• Stellar

  • Growing adoption in financial sector
  • Partnership with traditional financial institutions
  • Focus on real-world payment solutions
  • Strategic partnerships with fintech companies

This comparison reveals two networks with distinct strengths and focuses. Ethereum excels as a general-purpose blockchain platform with robust smart contract capabilities, while Stellar shines in its specialized role as a payment and value transfer network. The choice between them largely depends on the specific use case requirements, with Ethereum better suited for complex decentralized applications and Stellar optimized for efficient, low-cost financial transactions.

FAQs