Our high-level view of Stratis is that the project is tackling an interesting space, the nascent Blockchain-as-a-Service (BaaS) opportunity. The creators of Stratis are attempting to make it easy for any organization to create and deployed blockchains tailored to their specific needs. The defining characteristic of the project is its focus on the C# programming language and ease of integration with the Microsoft .NET framework, which caters to millions of developers around the world. Stratis is in Microsoft’s Azure Marketplace, but it is not one of the featured projects from their trusted projects, which include Microsoft’s own Azure Blockchain Service, R3’s Corda, Ethereum Enterprise Alliance’s (EEA) Quorum, and Chain’s Chain Core.
It is still very early in the project’s lifecycle and our interaction with the project’s code and measurement of the on chain economic activity reflect that fact.
We deployed and reviewed several of the project’s core components, including the Stratis Bitcoin Full Node, nStratis library, and the Breeze Wallet, which did not operate as seamlessly as expected. For example, the “getBlock” RPC call did not work for Stratis Bitcoin Full Node, which forced us to switch to a completely different client, StratisX. In addition, some of Stratis’s important roadmap components, like their smart contracts platform, are lacking technical details for us to evaluate. Although we think the bugs are reasonable given its relative youth, it is a reminder of the project’s early stage of development.
The sparse on-chain economic activity is also indicative of a young network. Transaction volumes, USD sent across the network, transaction throughput as measured by transactions per second, and total network transaction fees are all small compared to longstanding networks like Bitcoin and Litecoin. We attribute this to the fact that Stratis’s full BaaS suite of products and unique nodes have yet to be developed. Furthermore, specific details about the economics of these products, aside from the 250K STRAT and 5 BTC required to be staked to run a Full Node, have yet to be determined, making it difficult to model or value the project.
Stratis faces several risks including the reliance on C# and the Microsoft’s .Net framework, key man risk with the platform’s CEO and lead developer, and concentration of trading of the STRAT token on three exchanges, including Upbit in Korea. The project faces competitive threats from other BaaS tokens, like Komodo, as well as by private blockchain consortiums, like EEA’s Quorum.