ERC20 token nurtures all kinds of ICO. It is in nature a smart contract based on Ethereum. Specifying the total amount of tokens and number of tokens in certain address and tracking the change of the number of tokens in each account during the transaction.
Paralism’s coinage is based on the P2P, TCP/IP architecture, and parallel blockchain layer and Buddy consensus algorithm on the blockchain,leaving the user a self-defined consensus script for coinage. Users can select or write customized consensus and set monetary rules and quantities according to their own business needs in customized scripts.
According to CMC (Coin Market Cap) and digital currency industry, the ERC20 protocol issued based on Ethereum is called Token; whereras, the coin issued on the sub-chain of Paralism is coin with its own unique consensus rules and business characteristics. The difference between the two is mainly reflected in the following aspects:
- Different Application
Tokens are from smart contract whose function mainly depends on the functions that its smart contracts can extend.As a form of smart contract, the functions of token mainly depends on the extended functions of the smart contract. The most common ERC20 protocol currently contains very simple features, such as simply specifying the total amount of tokens, allocating options, and tracking the increase or decrease in the number of to kens in each contract address. We can see that basically no any other business functions other than supporting simple distribution and transfer.
Paralism is completely open source, sub-chain consensus can be customized, although it has certain threshhold of developing , but it give users enough space to create a digital currency closely related to the business, or customize the asset attributes to achieve the corresponding application. As long as it is legal and reasonable, Paralism will provide sufficient chain resources for the corresponding coins, and the parallel chain community will help users to develop certain settings.
- Different levels of security
Ethereum tokens have many security vulnerabilities due to functional limitations, such as the inability to roll back when a transfer error occurs. Secondly, when the ERC20 transfer is made, the exchange or wallet needs to call the relevant smart contract. If the contract response fails, the token may be lost. The Ethereum community is now actively exploring upgraded contracts such as ERC223 and ERC777 to compensate for these functions.
Ethereum smart contract wrote the code program, and he insisted that “code is everything” and it “built-in” absolute control. You must be willing to pay the price, and you need to pay the gas fee to support the operation of the token. In order to avoid the high amount of Gas, some tokens have chosen the low settings of functions, resulting in a large number of security holes. What is even more frightening is that there are security vulnerabilities in the smart contract itself, such as the BEC tokens theft, which has caused huge problem for the project.
The Paralism system-level consensus algorithm, from sub-chain local consensus to hyper-block global consensus, no matter where you are from, you can’t avoid the double security reinforcement of parallel consistency. And the system already has or submits a custom consensus script to issue the encrypted digital currency of the user-specific business scenario, which reduces the difficulty of the release to a certain extent but the security is not reduced.
- The threshold of blockchain is different
Ethereum ERC20, operators can make a Token within half an hour, with a variety of white paper writers, there is no threshold for making tokens. This is why 99% of ICO has become a harvester for investors. Paralism allows users to customize the consensus and provide some common coin-sharing options and tools, but whether you choose a custom script or develop your own, you need to fully understand your business needs, and even have a strong development skills, it sets a certain threshold for the publisher to some extent. In the early days, threshold may block the flow of some “low” markets, but from the perspective of ecological long-term health, replacing the simple and rude tokens is a necessary way to coonect blockchain with true value.
- Differences in Performance
It is undeniable! The smart contract is a breakthrough in prototype! It stirred the virtual currency outbreaks in the early days of the market, and found a way for the freedom of virtual currency distribution. However, subject to the expansion bottleneck of the serial chain structure. Ethereum has no way to go , and there is no solution .Paralism adopts parallel chain data structure and innumerable sub-chain parallel system environment, which guarantees that digital assets always have the chain to support without the risk of burning out of thin air, and the value of product can be compared with bitcoin.
- Interface and other technical issues
Based on the Ethereum, ERC 20 tokens have to through token mapping or migaration once the project itself launches the mainnet. In the process , the user once miss the mapping deadline, coin will disappear. And the whole process is quite complicated, wallet, secret key, if you don’t pay attention on it, you will lose everything.
On the digital economic platform supported by Parallism, users can customize the consensus script according to their own business processes in the sub-chain, in the meantime, set the total amount of currency issuance, distribution mechanism, and release in the consensus script, period, lock-up period, etc., control the digital currency allocation mechanism. Once successfully released, it is based on the self-made chain of coins, no mapping, digital assets are unique and will be very safe.
Of course, the ERC20 protocol also facilitates the trading of various tokens on the centralized exchange. As long as they are ERC20 token, the exchange only needs to change certain parameters to list the token. It lowers technical thresholds for both tokens and exchanges which facilitated the formation of a trading buddle in the absence of real value.
Paralism’s self coinage automatically generates various settings of coins makeing it technically less easier to be listed in a large scale. However, Paralism’s own cross-chain trading scheme ensures seamless exchange of multiple coins and gradually forms a decentralized trading market without the need to cater to cetralized exchanges.
Official website： www.paralism.com
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