Atomic Swap! Rate3 (RTE) runs on both Ethereum & Stellar!
We are proud to announce our latest progress update: Rate3 will exist on both the Ethereum blockchain and Stellar network! We’ve decided to run RTE on both blockchain — Ethereum for liquidity and Stellar for transactions. By creating a bi-directional blockchain with Stellar, we believe it will drive mass adoption of Rate3 Network by providing faster confirmation times, low transaction fees and higher scalability.
What is Dual Chain?
Users can imagine their RTE token being split into two equal parts — one that runs on the Stellar network and one that runs on the Ethereum blockchain as a ERC-20 token.
At its inception, there will be 1,000,000,000 RTE tokens created, of which all are ERC-20 tokens. However, every ERC-20 RTE token will have a corresponding RTE Stellar token as well.
This is accomplished through atomic swaps, the latest in-pro technology that allows cryptocurrencies to be traded across blockchains. Essentially, Rate3 will lock up a RTE’s Stellar token amount when the equivalent ERC-20 token amount leaves our Rate3 wallet interface, and vice versa. However, the total possible amount of tokens out there — be it ERC-20 half or Stellar half — will be 1,000,000,000 (assuming no burning or careless removals by any user).
Imagine this:
Tom purchases 1000 ETH worth of RTE tokens during the token sale. This grants him 8,000,000 RTE tokens, given the 1 ETH : 8,000 RTE tokens. Tom can choose to keep this 8,000,000 RTE ERC-20 token or swap any amount to RTE Stellar halves.
Assuming Tom wants to swap half of it away, we will do an atomic swap and lock up his 4,000,000 RTE ERC-20 tokens, whilst sending him 4,000,000 RTE Stellar tokens. Tom will still retain 8,000,000 RTE tokens, be it a ERC-20 half or Stellar half. The best part of it? He can swap between each half, easily through the Rate3 wallet interface.
Why does Rate3 need a dual chain?
The short answer: a dual chain allows for the best of both world since both the Ethereum blockchain and Stellar network have very different use cases, advantages and adoption stages.
For more context on Rate3 Tokenomics, please read more here.
Stellar for cheap and fast cross-asset transactions
For Stellar, the Stellar network allows for many more transactions with fast transaction speed of 2–5 seconds and transaction fees of several orders of magnitude low. The built-in decentralized exchange is also most ideal for cross-borders payment and settlement, where different assets can swap between each other easily so long as the asset-pair is available. This allows participants to transact between each other easily, cheaply and quickly.
However, the Stellar ecosystem is not as developed and mature yet. Stellar wallets, hardware wallets and exchanges still do not accept Stellar-based tokens as much, albeit fast growing progress on Stellar’s end.
Lastly, for Rate3 to be a true utility coin, it has to be able of doing more than just facilitating transactions like a payment token. For instance, Stellar do not have the full generality of Turing-complete smart contracts, limiting its functionalities and features. After-all, it’s not built for this purpose.
Ethereum for added functionality, market adoption and higher liquidity
On the other hand, ERC-20 tokens are infinitely customizable with Ethereum’s smart contracting language, since Ethereum has the most expressive programming capabilities. In turn, a RTE ERC-20 token will be able to allow for staking and governance purposes — a true utility coin.
In terms of real-world adoption, Ethereum (and ERC-20 tokens) are really plugged into the crypto landscape. From exchanges to wallets to token sales itself, the whole ecosystem and infrastructure is built out and very mature on Ethereum.
Therefore, creating a bi-direction blockchain with both Ethereum and Stellar at its core will drive mass adoption of RTE.
How does this affect users?
We want to make the entire experience as simple and delightful for users as possible.
Users will be able to access both their RTE-Stellar and RTE-ERC 20 tokens, and do an atomic swap between both equivalent token amount easily in a single interface.
For digital services and daily transactions, it will happen on top of the Stellar network. Participants who are earning more, they could swap the Stellar token amount for equivalent Ethereum token amount to put in hardware wallets or even exchanges. Likewise, they can buy RTE tokens easily on Ethereum and move that into the Stellar network, and vice versa.
In terms of utility, this dual-chain capability allows for the best of both worlds of what Stellar and Ethereum have to offer, and provides for more liquidity for investors as well.
Where can I read more about dual chains?
Dual chains are an increasingly popular concept, documented here:
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