Why is Swarm City built on the Ethereum blockchain? | swarm.city

Why is Swarm City built on the Ethereum blockchain?

We had several reasons for choosing to build the Swarm City DApp on the Ethereum blockchain opposed to building our own blockchain or using another:

  • It gives us the ability to create reputation for each transaction we do. When SWT is transacted over a hashtag (smart contract) the people transacting get reputation on that hashtag. So, say in a rideshare scenario, a driver and a rider who transact on #needaride both get reputation for successfully completing the deal. That can’t happen in our ecosystem if SWT isn’t used.
  • There is a need to have economic incentives of participants in the platform aligned.
  • To eventually insulate the community from value fluctuations of other currencies.
  • It is a way to make the platform sticky. Since the value of SWT is closely linked to the success of Swarm City the participants are invested in the success of the ecosystem. That's not possible if you use ETH.