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As blockchain use cases such as digital securities, lending platforms, and more take off, companies are finding the need for increased flexibility in their blockchains. Stratis, a popular enterprise-focused ‘Blockchain as a Service (BaaS)’ company, has recognized this and just announced STRAX.
The outgoing Stratis blockchain, and its associated STRAT tokens, will be replaced with the STRAX blockchain and STRAX tokens.
Stratis notes various reasons that necessitated this upgrade/pivot – primary of which is business adoption. The company did not mince words when describing where this adoption could occur. Stratis states,
“We believe that our platform provides a fantastic platform for the development and deployment of DeFi based Smart Contracts”
In order for STRAX to realize its potential, Stratis has put together a team tasked specifically with creating a library of DeFi applications.
Included in this pivot towards DeFi, is Stratis’ continued support for capital generation events, such as digital security offerings – support brought forth in the recent launch of its STO platform in July, 2020.
Other key upgrades afforded by STRAX include, but are not limited to,
- Ethereum interoperability
- Revamped block-times and block-rewards
To learn more about this upcoming blockchain, and how it will function, make sure to peruse the recent introduction to STRAX by Stratis themselves, HERE. The team indicates that an updated roadmap will soon be released.
Token Use Cases
Different blockchains utilize native tokens in varying ways. Some may be wondering what purpose the newly proposed STRAX tokens will serve on this upcoming blockchain. Stratis has provided the following use-cases as examples of these.
- To receive a token on a sidechain that can be used to execute smart contracts
- As collateral to operate masternodes via the Stratis Platform which can result in Subscribers receiving fees
- To purchase customizable private sidechains, that are connected to the Stratis blockchain
- These can be used by the subscriber to run their own initial coin offering of security token offering
- Subscribed to ICOs and STOs that are run by certain third parties using the Stratis platform
- Pay for various goods and services using a small number of third-party payment processors
From the provided information, it would appear as though STRAX tokens will pull their weight, serving various purposes on the upcoming blockchain.
Status – Pending
It should be noted that while news of STRAX is intriguing, the launch of this blockchain in its current form is not a given. In order for the launch to occur, the Stratis community needs to vote and agree on certain proposed changes. More specifically, a vote is needed on whether or not the Stratis community is okay with increasing the supply of tokens. An increase which would see an additional 25,000,000 tokens created, and to be used for platform development.
It is widely expected that the Stratis community will vote in favour of this change.
The creation of a new and more flexible blockchain, better suited to the rise of digital securities and DeFi, is not an idea exclusive to Stratis. While the company’s most recent announcement contains some unique approaches, the following are examples of other companies that have also released ‘new-look’ blockchains.
Polymesh by Polymath
As a company synonymous with digital securities, Polymath quickly noted that a blockchain, purpose-built for servicing this sector, was a necessity. As a result, Polymath developed, and is in the early stages of launching, ‘Polymesh’.
We have previously taken multiple looks at what this blockchain will entail, with an overview of the offering found HERE.
Symbol by o%09NEM
NEM has been a mainstay in the world of blockchain for years now. This is partially due to the company’s ability to adapt and pivot around hurdles and industry developments. Much like Stratis and Polymath, the team behind NEM has noted the need for a tailor-built blockchain, bringing greater flexibility and support for digital securities. This blockchain is known as Symbol, and is expected to launch in the coming months.
We recently completed an exclusive interview HERE, with NEM Group CIO, Dave Hogson, where both Symbol and NEM's trajectory were discussed.
If one thing has been made clear over the past few months, it is that anything related to DeFi will garner huge amounts of attention. Most often, this has led to quick spikes in prices – whether warranted or not.
This commonly seen spike in pricing did not escape Stratis, as the company has seen its existing STRAT tokens jump from roughly $0.36 USD to $0.56 USD in the 48hours leading up to the time of writing.
Roughly one month ago, when NEM announced opt-in dates for receiving Symbol tokens, the company saw a similar spike in token prices to that currently being experienced by Stratis. At the time, XEM tokens jumped from roughly $0.09 USD to $0.16USD in a 72hours span.
Founded in 2016, Stratis is headquartered in the United Kingdom. Above all, Stratis strives to develop blockchain-based solutions for enterprises, with the goal of making the technology ‘simple’.
CEO, Chris Trew, currently oversees company operations.