How to build a smart contract-based subscription platform like Sablier

Blockchain and smart contracts enable innovative subscription services. Smart contract subscription platform like Sablier by offering real-time, automated payment streaming, transforming business-user interactions. Smart contracts eliminate inefficiencies, reduce friction, and enhance trust in transactions.

For entrepreneurs and businesses looking to stay ahead in the digital economy, building a smart contract-based subscription platform offers a unique opportunity to innovate and streamline operations. This approach not only enhances user experience but also provides a competitive edge in an increasingly blockchain-driven world.

In this blog, we will talk about a step-by-step development process of a subscription platform using smart contracts, covering technology basics to designing a user-friendly system. Also, some important features that you can include in your smart contract-based subscription platform and launch it in the market.

Key Market Takeaways of Smart Contracts Market

The Grand View Research reports the global smart contracts market was valued at USD 684.3 million in 2022, projecting an impressive CAGR of 82.2% from 2023 to 2030. This growth highlights the rising adoption of blockchain technology and the transformative potential of smart contracts across industries.

Smart contract-based platforms, like Sablier, address key pain points in traditional subscription models, such as delayed payments, lack of transparency, and inefficiencies caused by intermediaries. These platforms enable real-time, automated, and trustless payments, creating a seamless experience for both businesses and users. 

Entrepreneurs can enter markets by transforming transaction and subscription management. A subscription platform using smart contracts meets rising demand and fosters innovation. Eliminating intermediaries lowers costs and improves scalability for new competitors. As blockchain technology grows, industries seek decentralized solutions.

Overview of Sablier Smart Contract-based Subscription Platform

Sablier is a decentralized protocol for real-time token streaming that allows users to receive and pay ERC-20 tokens continuously at intervals of time and not in blocks. It was introduced in December 2019 and offered a new way of handling payments, wages, and subscriptions in the cryptocurrency world by guaranteeing money to be paid per second. This eliminates latency, maximizes transparency, and adheres to decentralized finance practices.

Key Features of Sablier:

These are the key features of Sablier, which offers a seamless way to stream payments in real time, enhancing efficiency and transparency in financial transactions.

1. Real-Time Streaming Payments

Sablier allows continuous fund streaming and recipients to withdraw earnings instantly instead of waiting for fixed intervals. This method is the best for salaries, subscriptions, and vesting schedules.

2. Lockup Dynamic & Lockup Linear Models

• Lockup Dynamic: Allows token distribution based on custom mathematical functions, enabling non-linear payout structures.
• Lockup Linear: Offers traditional linear token release with optional cliff periods, suitable for straightforward vesting schedules.

3. Stream as an NFT (ERC-721)

Each payment stream represents an NFT, so it can be transferred, sold or used as collateral in DeFi applications that add liquidity and flexibility to token streaming.

4. Batching Streams

Multiple payment streams can be created in a single transaction, reducing gas fees and improving efficiency, especially for payroll systems or large-scale fund distributions.

5. Third-Party Integrations & Broker Fees

Developers can add Sablier to their platforms and earn fees to enable transactions. Smart contracts could also have hooks to perform automated actions every time stream events happen.

6. Non-Cancelable Streams

The ability to establish ongoing payment streams assures money is tied up and available only to the extent of the pre-arranged schedule, offering protection and certainty for recipients.

Best Time to Invest In Smart Contract-based Subscription Platform

With the rapid adoption of decentralized finance (DeFi), the demand for transparent, automated, and efficient payment solutions is growing. Smart contract-based subscription platforms leverage blockchain technology to facilitate real-time transactions for use cases such as salaries, subscriptions, and vesting schedules.

For example, Roketo’s success demonstrates the potential of smart contract subscription solutions. Built on the NEAR blockchain, it gained over 5,000 customers, processed 7,000 payment streams, and managed over $1.2M in transactions in one year. Its strong performance resulted in $900,000 in funding from Move Capital, MetaWeb Ventures and A&T Capital.

Superfluid, built on Ethereum, Polygon, and xDAI, has grown significantly in programmable cash flows. It raised $9M in 2021 by Multicoin Capital to expand its ecosystem. Its infrastructure allows businesses and developers to automate financial transactions, making it a key player in blockchain-powered payments.

These platforms show the industry’s evolution, giving entrepreneurs a chance to enter this space. The rising demand for decentralized payment solutions indicates that a smart contract-based subscription platform could achieve long-term success.

Many smart contract platforms use a subscription model for steady revenue. As features grow, engagement and profits increase. Given the fast evolution of DeFi, now is a great time to launch a user-friendly solution for long-term success.

Business Model of Sablier Platform

Sablier is a decentralized protocol for real-time token streaming on the Ethereum blockchain, facilitating continuous payments for salaries, subscriptions, and vesting schedules.

Revenue Streams

Sablier is an open-source protocol enabling developers and organizations to stream real-time payments. It doesn’t charge users; they only pay Ethereum network gas fees to start and manage payment streams.

While Sablier does not generate direct revenue from its core protocol, its growing adoption and recent funding suggest potential future monetization strategies, including:

• Premium features for businesses and enterprises
• Subscription-based or tiered service models
• Fees for advanced integrations and developer tools

Funding Rounds

Sablier Labs has successfully raised capital to support its development:

• March 2024: Raised $4.5 million in a seed funding round led by A Capital, Fenbushi Capital, WAGMI Ventures, and GD1 Web3, with participation from notable angel investors like Daniel Bar, Ben Middleton, and Evan Van Ness.
• 2022: Secured $500,000 in a pre-seed round.

Financial Performance

Sablier’s on-chain activity highlights significant adoption:

• 65,000+ payment streams created (as of March 2024)
• $50 million in stablecoin volume processed
• Median Total Value Locked (TVL) exceeded $161 million over the past three years

Development Steps of Smart Contract-Based Subscription Platform

A Smart Contract-Based Subscription Platform enhances automation, transparency, and security. Below is a structured approach to building an efficient and reliable system.

1. Identify the Subscription Requirements

Start by establishing the most significant features of the platform. Decide on the types of subscriptions (month-to-month, yearly, pay-per-use) and establish price ranges depending on access. Establish subscriber roles such as subscribers, admins, and content owners. Establish payment, renewal, cancellation, and access rules in clear terms to facilitate smooth automation and conflict prevention.

2. Choose a Blockchain Platform

Proper blockchain selection is paramount to price and performance. Ethereum is a very secure and developer-friendly smart contract utilization but costly to deploy with high gas fees. EOS is more transaction-performant and less expensive, thus best for high-traffic platforms. Options are Polkadot, Solana, or Tezos, depending on needs like scalability, interoperability, and cost per transaction.

3. Develop the Smart Contract

Program the smart contract in Solidity (for Ethereum) or another development language that a blockchain supports. The contract must automate renewals, cancellations, payments, and permissions. Safety is a top priority, so thorough testing with numerous scenarios should be performed to discover vulnerabilities before deployment.

4. Deploy the Smart Contract

Before deploying, the test environments such as Truffle, Hardhat, or Ganache must be configured to test on local. Test the contract on a test network (e.g., Ropsten, Rinkeby) to test how it would work without the money involved. Deploy on mainnet after thoroughly testing to get it live to customers.

5. Design the User Interface

The simplicity of the user interface is the crux of user experience. Subscribe, plan management, payment history, and subscribe/upgrade to cancel subscription features must be managed by the front end. The interface must be linked to the blockchain with web3 libraries (Web3.js, Ethers.js) so that smooth, smart contract interaction can be managed.

6. Integrate Payment Solutions

Since blockchain platforms are capable of accepting cryptocurrency, the system should be capable of accepting crypto subscription payments. Stablecoins like USDT or DAI can be offered to customers with a less volatile payment option to hedge against volatility risk. Payment processing should be automated to enable transactions in real-time.

7. Secure and Compliant

Smart contract auditing needs to be done to discover and seal loopholes. Auditing by third-party security companies will keep it safe. As per the respective legislations, i.e., AML and KYC acts, it also needs to be remembered to legalize it to operate.

8. Launch & Maintenance

After deployment, continuous optimization and monitoring are required. Transactional performance monitoring, system availability, and end-user access identify issues before they are issues. Regular end-user opinion collection and modifying the platform maintains the platform attuned to the need to keep the platform secure, functioning, and competitive in the marketplace.

Development Cost of Smart Contract Subscription Platform

The cost of developing a Smart Contract-Based Subscription Platform varies based on complexity, features, and security requirements. Below is a cost breakdown based on key development steps.

The total estimated cost ranges from $10,000 to $100,000, depending on the platform’s complexity, features, blockchain development, deployment, and security needs.

Enhancing Features to Include in Smart Contract-based Subscription Platform

These are some enhanced features that can improve functionality, user experience, and scalability. Below are some key areas of improvement:

1. Advanced Stream Customization

While Sablier supports continuous payments, adding more flexibility can make your platform more appealing. Features like variable payout schedules, performance-based payments, and conditional releases (e.g., funds unlocking upon milestone completion) allow businesses to customize their payment structures according to specific needs.

2. Multi-Chain Compatibility

Expanding beyond Ethereum to support multiple blockchain networks such as Binance Smart Chain, Solana, or NEAR can reduce transaction costs and attract users looking for lower gas fees and faster transactions. Cross-chain compatibility can also increase adoption by giving users more options.

3. Automated Subscription Management

Introducing built-in automation for recurring payments, renewals, and cancellations can eliminate manual interventions. This ensures seamless subscription management for businesses and reduces friction for users.

4. Enhanced Security Measures

Strengthening security through features like multi-signature wallets, smart contract audits, and fraud detection algorithms can boost trust and minimize risks. Users will feel more secure knowing their funds and data are protected.

5. Flexible Fee Structures

Instead of a one-size-fits-all approach, offering tiered pricing models, pay-as-you-go options, or dynamic transaction fees can cater to different user needs. Businesses can choose pricing that aligns with their transaction volume and budget.

Conclusion

Developing a subscription platform like Sablier with smart contracts revolutionizes subscription services. This blockchain-based platform enables real-time payments, transparency, and trust, addressing inefficiencies in traditional models.

This blog talks about the process of creating such a platform, from learning about smart contracts to building an easy-to-use system. The potential for innovation and automation is high, with the promise of a competitive advantage in today’s digital economy.

The future of subscription platforms is being modeled through blockchain, and the chance to be a leader in the field is within your grasp. Get started today and build a platform that serves current requirements as well as future ones.

Want to Build a Smart Contract-based Subscription Platform with IdeaUsher!

With over 500,000 hours of development time under our belt, we specialize in building decentralized payment solutions for today’s businesses. 

Our cutting-edge smart contract-based subscription platforms incorporate real-time payments, automated transactions, and hassle-free financial management, ideal for salaries, SaaS models, and streaming services.

From secure payment streaming to multi-chain support, we enable businesses to leverage blockchain technology for transparent, efficient, and scalable financial solutions. 

Partner with Idea Usher to create a next-generation DeFi-powered subscription platform that revolutionizes automated payments and financial transactions.

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FAQs

Q.1. What is a smart contract-based subscription platform?

A smart contract-based subscription platform leverages blockchain technology to automate and manage subscription services. By utilizing self-executing contracts with predefined terms, these platforms ensure transparent, tamper-proof, and efficient subscription management without the need for intermediaries.

Q.2. How does a smart contract ensure the security and reliability of subscription services?

Smart contracts are self-executing programs stored on a blockchain. After deployment, no one can alter them, ensuring consistent enforcement of subscription terms. Their immutability enhances security and reliability, as the blockchain transparently records and executes all transactions and conditions.

Q.3. What are the key steps to develop a smart contract-based subscription platform?

To develop a smart contract-based subscription platform, choose a blockchain like Ethereum or NEAR, write smart contracts in Solidity, and thoroughly test them. After deployment, build a user-friendly interface for seamless interaction. Development costs typically range from $10,000 to $100,000, depending on features, security audits, and UI/UX design.

Q.4. What are the benefits of using a smart contract-based subscription platform over traditional methods?

Smart contract-based subscription platforms provide significant advantages over traditional methods. They automate subscription processes, reducing the need for manual intervention and administrative tasks. Blockchain technology records all transactions and terms, ensuring transparency and building user trust. The immutability of smart contracts prevents unauthorized modifications, enhancing security. Additionally, eliminating intermediaries lowers costs, making subscription management more efficient and cost-effective.