In 2019, the growth of the MLM industry was stunned by lawsuits, federal fines, and pyramid scheme allegations. While the industry holds tremendous potential for growth, the credibility of MLM companies is always at stake because of the way it operates. Two major challenges by the industry are:
1. Operational efficiency drops
During the initial years when the network size is manageable, the checks and products are dispatched in time. Over the years as the network size grows, the companies are unable to maintain the pace. As a result, the commission checks and the products take forever to reach the network participants. Thus, the credibility of the company starts dooming.
2. Bad policy execution
Most of the companies have a refund policy, a membership cancellation policy, and other such policies in place. However, due to some of the unethical network participants, the new participants who wish to drop out of the network never get to know about these.
How does a smart contract-based MLM overcome these challenges?
Smart Contract-based MLM platforms are decentralized MLM networks. As the smart contracts eliminate the involvement of a centralized authority and automate the operational processes, the risks of fraud and operational inefficiencies are highly reduced. In addition to that, smart contracts are powered by blockchain. As it is a decentralized, immutable, and transparent ledger, it promises higher security, transparency, and fraud prevention to almost every MLM process.
Smart contract MLM on TRON or Ethereum
The efficiency, scalability, and performance of a smart contract MLM depend on the kind of blockchain it is built upon. TRON and Ethereum are two very popular blockchains that allow the development of smart contracts on them. Thus, smart contract MLM on TRON and Ethereum both are suitable for supporting the operations of an MLM. However, one out of the two is a better fit:
Smart Contract MLM on Ethereum
Ethereum (ETH) is one of the oldest and most used blockchain platforms. That’s because it was the first blockchain to support smart contract development.
Why Ethereum Smart Contract for MLM?
Some of the major advantages offered by an Ethereum smart contract for MLM are:
· All the process-related data, network-related data are stored in the contract and are highly transparent.
· Ethereum is one of the most trusted blockchain platforms
· Well-audited Ethereum-based smart contracts ensure highly secure transactions
· Every transaction on the Ethereum blockchain is traceable.
· Immutability prevents fraudulent activities
· Transaction history can be verified
Smart Contract MLM on TRON
TRON started as a project with a narrower vision than Ethereum. The aim of the TRON blockchain was to return freedom to the Internet – basically in terms of creating and using content. However, eventually, the vision broadened and it developed into a platform that now stands as a strong competitor of Ethereum.
The most noteworthy benefits of Tron MLM software are:
Why TRON Smart Contract for MLM?
An MLM platform is a transaction-intensive platform. Lately, the Ethereum network has faced lots of scalability challenges. This reduces its suitability to support a low cost and fast MLM platform. Thus, smart contract MLM on TRON provides network participants an MLM platform with near-zero fees and much faster than Ethereum.
|Functional since||July 2015||July 2017|
|Consensus Mechanism||Proof-of-Work (PoW). However, the transition to Proof-of-Stake (PoS) has started||Delegated Proof-of-Stake (DPoF)|
|Transaction Per Second(TPS)||20 transactions per minute||2000 transactions per minute|
|Transaction Fees||Calculate based on Gas and Gas price||Calculated based on Bandwidth (near zero)|
If you are planning to build a smart contract MLM on TRON or Ethereum, Antier Solutions can help. We offer white label smart contract-based MLM software solutions to help you quickly launch your MLM platform into the market. In addition, we specialize in building custom MLM platforms from scratch.
Schedule a free demo of our Ethereum and TRON MLM software or connect with our subject matter experts to share your needs for a custom MLM platform to be built from the ground up.