Author: Lex Sokolin
Original title: Analysis: Stripe 's Tempo is building the Apple of payment blockchains
Compiled and edited by: BitpushNews
That's fast!
Stripe's controversial payment chain—forked from Ethereum and with key modifications for fintech applications—is now live on its testnet.
It's worth noting that the project has completed a $500 million seed funding round, backed by Stripe and Paradigm , and is targeting the payments industry as its first market entry point.
(Source chart: Technical architecture comparison chart)
Those interested can view the code repository here .
The first thing we noticed is that this technology is released under the Apache or MIT open-source license. This is good news.
The Apache 2.0 License is a popular, permissive open-source license issued by the Apache Software Foundation. It allows for extensive commercial use, modification, and distribution, requiring only that the copyright notice be retained, the license text be provided and material modifications be noted, and that contributors provide explicit patent authorization to users.
Therefore, the open-source community is free to adopt any of Tempo's technological advancements. This means that while Ethereum may not be able to gain the commercial advantages that Tempo brings to Stripe, it can still absorb its protocol-level technological innovations.
So what are the key differences? We cite the core design specifications:
Payment gateway reserved specifically for TIP-20 transfers
TIP-20 is a stablecoin issuance standard created through specific functionalities. Its core effect is to bind stablecoin issuance and priority transfers on-chain.
In Ethereum, different stablecoin issuers compete with each other, and these issuers are not fundamentally different from other token issuers.
On Tempo, stablecoin issuance contracts are embedded in the TIP20Factory, creating the possibility for future on-chain revenue. Establishing a fast track for these tokens gives them a permanent advantage. However, anyone can use the factory contract, meaning competition still exists at the distribution level, but the manufacturing level tends to be centralized.
Low and predictable transaction fees paid in stablecoins
Users can directly pay gas fees with USD stablecoins upon launch. A Fee Automated Market Maker (AMM) will convert these to a validator-preferred stablecoin. The target cost for TIP-20 transfers is less than one-thousandth of a dollar (<0.001 USD). Liquidity providers in the AMM receive 0.3% of the fee from each exchange. This design also avoids miner extractable value (MEV) and arbitrage attacks targeting transactions—which have cost users over $1 billion on Ethereum.
Making user payment transactions more universal is a commendable design direction, and Tempo implements multi-directional payment options.
Here, any asset can be exchanged for stablecoins to pay for gas; while on Ethereum, although any asset (including stablecoins) can also be exchanged for ETH to pay for gas, this process is not automated and requires the support of smart accounts.
More importantly, Ethereum features execution competition between different AMMs, rather than fixing a specific AMM into the chain mechanism. This competition is crucial when trying to inspire innovation in new financial primitives; however, it is relatively less important for Tempo, which aims to industrialize financial primitives.
Native Smart Account Integration
Tempo integrates the superior concept of smart accounts into transactions: (1) supports multi-operation batch payment (salary payment, settlement, refund); (2) fee sponsorship mechanism, allowing applications to pay gas on behalf of users; (3) scheduled payment function, supporting periodic and timed payments within protocol-level time windows; (4) adopts modern authentication methods such as access keys (e.g., biometric login).
(Attached image: A chart showing the long-term competitive trend between Microsoft and Apple , compiled by Statista)
Just as Stripe integrates multiple fintech services into a single platform, Tempo is incorporating its most in-demand payment functionality as a native part of the blockchain, rather than leaving it to third parties to develop and compete for user recognition. This embodies Apple's software development philosophy—where all experiences are meticulously designed, proprietary, and vertically integrated—rather than the Windows-style model of aggregating developers to create third-party applications (the latter may offer breadth of functionality but often lacks security and a consistent user experience). More broadly, this reflects the fundamental difference between closed and open architectures.
Performance and Finality
(Source: Ethereum validator distribution map)
Tempo is fully compatible with the Ethereum Virtual Machine (EVM), allowing developers to deploy and interact with smart contracts using the same tools, languages, and frameworks as Ethereum, such as Solidity, Foundry, and Hardhat. Its consensus algorithm uses Simplex BFT consensus (derived from Commonware, in which Tempo has invested $25 million). The validator set is currently private and permissioned, which is the intended design for the initial stages of a private company.
In contrast, Ethereum is resilient to fragility and censorship, meaning anyone can freely join or leave the validator pool. Currently, there are approximately one million active validators on the chain daily.
Overall, Stripe/Tempo gives the core impression of rapidly advancing with a vertically integrated product strategy, aiming to dominate the fintech market. Its partnerships with AI companies, Web2 enterprises, and traditional banks fully demonstrate its strength in driving the commercialization of blockchain technology.
