Who will win the Smart Contracts race?

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Vitalik Buterin’s Ethereum is widely known as the ‘go to’ blockchain technology for smart contracts. But, this week, Ripple’s former CTO Stefan Thomas has thrown down the gauntlet to challenge the leader with a new smart contracts platform.

Thomas left Ripple in May and now he is launching Codius, an open- source project designed by Ripple and released in a beta version back in 2014. So, it isn’t exactly new, but Thomas is positioning it as the core product of his new company Coil.

Coil’s ambition is to change the way websites monetise their content.

Monetising web content is clumsy

According to Thomas, the current way in which web content is monetised is a clumsy workaround that uses adverts, paywalls and data harvesting. His concept uses an interledger. This is an open-source protocol that allows payments to be sent across different ledgers. Basically, it allows users’ browsers to make micropayments to the websites they visit.

How Codius works

How will that work, and how will it affect consumers? Codius allows the use of a “revenue disbursement contract” that will collect revenues when consumers watch a movie, for example. The collected revenue will be paid to all the parties involved in putting that movie online, but it won’t be made in “batch payments’, it will be paid out in a stream of smaller amounts. And, those people who read newspapers with a paywall will make payments via a smart contract that manages payment authorisations and the subscriptions.

Codius has already released an instruction manual for uploading Codius in an effort to get developers to start using the platform immediately, and it seems that the call has been heard.

Who is using Codius?

Telindus, the IT solutions subsidiary of the Belgian telecoms group Proximus has said it will be using Codius to “push forward novel direct e-commerce models.”

Game platforms, Unity, Zynga and Kabam also plan to use it for new gaming platforms. Josh Williams, who invested in Unity et al, and is now creating his own gaming platforms said: “Teams in games and elsewhere are building on Ethereum and running into the cost and scalability issues we’re all familiar with. Codius has great potential in addressing these concerns, and we are eager to work with it.”

Codius offers better scalability

And there is the dreaded word that Ethereum’s team will fear most: scalability. We all know that Ethereum is still working on resolving its scaling issues. It looks like Codius is offering a solution that neatly bypasses that problem. Thomas said: “The people that are reaching out to us are saying, ‘Hey, we’re experimenting on Ethereum. We’re running into scalability issues. It’s too expensive, too slow. It’s not flexible enough. We don’t like writing in this awkward language.’”

It isn’t the only challenger to take on Ethereum, but it looks like it might be one of the strongest contenders to win the race to bring smart contracts into mainstream use.

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