In any business, it is necessary to become updated with the latest technologies. MLM business has managed to stay relevant for over a century because it has always kept up with technological evolution. Smart contracts, one of the many applications of blockchain technology, have the potential to revolutionize MLM business. They are computer programs stored on blockchains that automatically execute the conditions listed in them. This eliminates the need for members to trust strangers to make payments on time. Ethereum and Tron are two of the most popular blockchains supporting smart contracts today. But, how do Ethereum smart contract MLM and Tron smart contract MLM compare against each other? Here we will have a look at Ethereum smart contract MLM vs Tron smart contract MLM – a comparison.
Blockchain and MLM are business fields that keep growing and people are increasingly entering their business every day.
A smart contract is a program on a blockchain that executes when certain predetermined conditions are satisfied. They are used to automate the implementation of agreements. The parties involved in a smart contract do not need to know or trust each other to be sure about the outcome. Also, there is no need to involve any third parties or intermediaries. Smart contracts can also be used to automate workflows, triggering subsequent actions when terms are satisfied.
Smart contracts function based on if-then conditions that are coded into a blockchain. Actions are executed when it is verified that specified predetermined conditions are met. The actions could be releasing funds, sending messages, issuing statements, etc. After the action is performed, it is updated on the blockchain, and cannot be changed.
Multi-Level Marketing is the smart strategy used behind every direct selling business.
They are based on a scheme in which each distributor can recruit new distributors and get compensated for it. The main strategy that lures more people to join MLM businesses is that they will be rewarded with the commission on the sale each distributor at their downline makes.
How each distributor ( also called an individual agent or member ) gets compensated shall depend on the plan they choose to join in an MLM company.
An MLM business that has efficient software that is built on blockchain technology to support its operation is called Smart Contract-based MLM. Smart Contact based MLM software is built upon blockchain technology which can flawlessly execute contracts once the preconditions for a contract are satisfied. This can accelerate the contract execution and enhance the MLM’s goodwill and nurture trust among its members.
Smart Contract-based MLM networks remove the centralized regulation and third-party manipulation and intervention on the network. Many things that need to be done manually in traditional MLM software like sign-up processes, commission calculation, and distribution are automated by smart contract technology. The blockchain technology behind smart contracts makes them more secure and transparent. Its smart features automate manual tasks and increase speed and efficiency and thereby saving costs for MLM companies.
Traditional MLM business has all its proceeds being carried out by taking enough time and labor. It demands higher authority approval and authorization for many procedures like compensation payout, store administration, new join recruitment process, rank change, sponsor change, and more. But Smart Contract MLM business simplifies this challenge by automating procedures and contracts thereby reducing time and manual labor.
Smart Contracts can benefit the MLM business in many ways. Following listed are the few ways by which it will help the MLM business to scale up its operations.
High Transparency and Increased Goodwill
Blockchain technology is popular for increasing transparency over all the platforms it is incorporated. The traditional nature of carrying out MLM business has many loopholes for incorporating fraud and practicing pyramid schemes. This decreases the faith people have in MLMs as they are more susceptible to fraud and malpractice and manipulative schemes.
Less chances of third party intrusions
Smart Contract MLM software has robust blockchain technology to avoid any third-party hacks or intrusion. Unlike traditional MLM software, which is more susceptible to such attacks, Blockchain-enabled smart contracts include a robust framework.
Increased automation
The most significant benefit that smart contract-based MLM software can bring is increased automation.This contains a slew of other benefits, such as quick and secure automation that requires less work and time.Once the preconditions for executing an operation or contract are met, Smart Contract-based software has automation that is swift and tight.Preconditioned automation like that of Smart Contracts gives freedom from subjective decisions and actions.
Less manual labor and time demanded Increased speed and accuracy
The speed that Smart Contract MLM software functions are incredible. The speed with which it functions is incomparable with any other technology.
Smart Contracts reduce the need for time and manual labour in contract execution. This helps to reduce the cost and time spent on human labour in the execution of contracts and operations, allowing those funds to be used to improve MLMs in other ways.
Block kchain technology definitely has robust science of speed and accuracy in its execution.
Less chances of human error
Less chances of human error is an important feature that lures more people towards Smart Contract MLM. Traditional MLM software is more dependent on human attention and skill which is prone to errors.
Less subjective decisions and operations
MLMs can be prone to subjective decisions and operations when more human factors and manual procedures are involved. This will also increase more frequent interruptions and bottlenecks while executing contracts.
Traditional MLM business has its own disadvantages which demand the business to be more updated with the latest changes and technology
Less data security
Data security is very important for all individuals and businesses.Therefore it is important that every business has to incorporate and update itself with strong technology that ensures data security.But traditional MLMs are not equipped with effective technology that ensures data security
Demands more paperwork, labor, and time
Traditional MLMs demand more paperwork , manual labour and time .There is very less automation and digitalization which can reduce paperwork,labor and time invested in getting things done across networks that is spread far and wide
Frequent bottlenecks while executing contracts
Executing contracts in traditional MLMs can be subject to delays and prone to day to day challenges.This Brings lag in executing contracts . When one of the party in the contract get reluctant to execute the contract ,this can add more roadblocks in executing contracts
More chances of human error
When we devote more human hours to a task, it is unavoidable that such task will be prone to human error. As a result, it’s always a good idea to limit human engagement in MLMs and replace it with greater automation and digitalization technology.
Slow execution of contracts and operations
Traditional MLMs are very slow in getting things done.This can cause MLMs to fall behind in today’s highly competitive world..Many things can become slow when there is very little automation, human intellect limitations, and subjective judgments.
Ethereum is one of the most preferred blockchains for smart contract development. It is the second most popular blockchain platform after Bitcoin itself. Developers choose Ethereum commonly for smart contract development because it has its own peer-to-peer network for transactions and data storage. Smart contracts can be deployed on the Ethereum Virtual Machine (EVM).
Ethereum smart contracts can be used effortlessly in MLM. They are easy to develop and implement in MLM, the binary matrix model can be used and it will improve the business revenue in a short time.
Leverage all the unique benefits of blockchain technology with our Smart Contract MLM software
Tron is one of the new platforms preferred by developers for deploying smart contracts in MLM. The native cryptocurrency of Tron TRX and token standards TRC10 and TRC20 have recently become popular. Tron does not charge any gas fees for transactions, provides increased security for all kinds of assets, and smart contracts are deployed on their own Tron Virtual Machine.
Using a Tron smart contract can help your business develop instantly. It provides numerous benefits. Tron smart contracts can give increased reliability, improved brand volume and profit, cost and time saving, and much more.
Read more on Tron Smart Contract MLM Software – Understanding their benefits
Ethereum or Tron can be used to develop smart contract MLM. Here we will compare the two blockchains based on consensus mechanisms, transactions per second, primary use cases, programming languages, and much more.
| Ethereum | Tron | |
|---|---|---|
| Found | July 2015 | July 2017 |
| Consensus Mechanism | Proof of work | Delegated proof of stake |
| Transactions per second | 30 | 2000 |
| Primary uses | Dapps and DeFi | Decentralized internet and entertainment |
| Programming language | Solidity | Java, Scala, C++, Python |
| Implemented in | Go, Rust, C++, Solidity | Java |
| Virtual machine | Ethereum Virtual Machine (EVM) | Tron Virtual Machine (TVM) |
| Forked from | None | Ethereum |
Transaction fees |
Based on gas and gas fees | Based on bandwidth (nearly zero) |
Tron and Ethereum both are open-source blockchains. Ethereum was the inspiration for the Tron blockchain. Because of its peer-to-peer network technology Ethereum is a popular choice.
But due to transaction fees and speed Tron has an edge over Ethereum.
The main advantage of Tron is that it does not charge or has cheaper transaction costs. This is because Tron smart contracts transaction cost is determined by the amount of bandwidth and energy used during the transaction but Ethereum transaction cost is determined by multiplying gas and gas price.
Blockchain of Tron has greater transaction speed than Ethereum that is 25000 transactions per second
Smart contracts have the potential to be the future of MLM business. It offers high reliability, security, transaction speeds, transparency, and much more. Tron and Ethereum are two of the most promising smart contract blockchain platforms today. Both these platforms can be used in your MLM plans. It is difficult to choose one smart contract platform for MLM. Ethereum or Tron can be chosen based on your requirements of the MLM plan. Both platforms are excellent choices for smart contract MLM development.
