- Global financial solutions are at the fore of bringing together both business developers and consumers, ensuring ease of business.
- The Stellar Network, XLM, provides top-notch services on the blockchain, revolving around borderless, limitless, and powerful ways to use money.
- The Stellar Foundation, whose aim is to “unlock the world’s economic potential by making money more fluid, markets more open, and people more empowered,” is achieving its perfect roadmap for 2021.
- Stellar is a community network “owned by the public” on a decentralized and open network with more features like the Community Development Fund being added.
Global finance has been the centre of blockchain and DeFi development. It has always been focused on the next step for the future: making global payments and other related services easier for users.
The easier transactions are made across the world, the more businesses can boom, and the faster money can circulate. The Stellar Network was developed to enable global digital payments, taking it to the next step.
Jed McCaleb, co-founder and chief architect of Stellar, stated that “the whole original design of Stellar is that you can have fiat currencies and other kinds of forms of value run in parallel with each other and with crypto assets. This is super important to drive this stuff mainstream.”
What is Stellar?
Stellar, XLM is an open network that makes it possible to create and transfer digital representations of fiat currencies. Stellar connects financial institutions through the blockchain and provides cheap services to users.
Every transaction costs 0.00001 XLM, which is very affordable compared to other blockchain financial solutions. Stellar’s setup is similar to Ripple because Stellar was originally on the Ripple Labs Protocol, but disagreements about the future of Stellar eventually led to a hard fork.
With Stellar, a user can create a digital dollar to be issued to other users when they deposit a traditional dollar, creating a 1:1 relationship. The dollar is returned when the digital dollar is given back to the creator.
Recent Developments and Future Events
Stellar has developed a perfect system through its mechanisms that can make even a small company reach the heights of an international bank.
Stellar plans to be the network to beat by improving its liquidity, and will achieve this by exploring automated market makers and OTC liquidity solutions.
If Stellar’s automated market system is going to be a success, it will be because of the utility behind it. A trader can use digital tokens to buy vehicles across borders, and users can also save in the digital representation of another currency.
The development of the Stellar consensus protocol makes the network more solid. The SCP is a step higher than Bitcoin’s Proof of Work system as it is more energy-efficient, perfectly configurable, and fast.
On The Flipside
- Stellar as a good blockchain payment solution hasn’t received its long awaited mass adoption, even though it’s ranked #17.
- Stellar’s Lumen is having a hard time because of Ripple Lab’s XRP, and this will only get worse after Ripple’s case with the SEC has concluded.
Stellar is an open and fully decentralized network with users participating and earning rewards at all stages.
Stellar operates as a system of tracking ownership without centralized accountants, but works more as an independent network of computers, with each checking and also validating the works of others.
Stellar users can also earn by creating digital tokens of real fiat and loaning them temporarily to other users to earn a passive income.
The Stellar Foundation is also using the Stellar Community Fund to develop the entire network and build the community. Stellar has a market capitalization of $5,559,014,751, with a current supply of 23,293,340,382 XLM coins and a maximum supply of 50,001,806,812 XLM coins.