What is Stellar, and why is it so promising? Keep reading to learn all the ins and outs.
A Brief Intro to Stellar
Jeb McCaleb is one of the founders of Ripple Labs. Later, he left the post of director and, in 2014, launched Stellar Foundation. Stellar appeared as the result of Ripple fork; still, they differ greatly.
Ripple cooperates with financial institutions and banks. Stellar is meant for consumers. It is an open-source project. Its token is XLM; the network fee is minimal so that consumers may swap fast and relatively cheaply.
Stellar features quorums instead of blocks. They reach consensus securely, exchanging signatures within nodes.
Principles of Stellar Development in 2021
The development team claims that this year will be a breakthrough for Stellar. Their roadmap states there will be more organizations using Stellar in 2021. They believe that the number of transactions and users of the project will grow as well. The team is working to make the Stellar ecosystem reliable for integrating into companies, banks, and ordinary people.
There are three main principles in the Stellar 2021 roadmap:
- Reliability and convenience
- Popularization of the project and expansion of the user base
- Creation of numerous use cases for international payments and securitized assets.
With all these done, Stellar should significantly expand its community.
Where Can I Trade Stellar?
XLM is on almost all known centralized exchanges. If you want to buy Stellar anonymously, visit Godex ‒ a decentralized exchange. If you want to know how much is one XLM to BTC, use the Godex calculator. Cryptocurrency rates are incredibly volatile. The calculator provides up-to-date information.
Besides Stellar, there are other 200 popular digital coins available on the site. You can swap any of them without registration or entering any personal data.
Why Is It Profitable for Companies and Banks to Use Stellar Technology?
Almost all central banks in the world have recently announced their intention to issue in-house digital coins. Practically all bankers don’t appreciate cryptocurrencies. Still, they cannot but use this technology. Otherwise, they will be uncompetitive and fall out of business shortly. To create their cryptocurrency, banks need to use projects like Stellar. There are several reasons why financial institutions will benefit from Stellar technology.
- Speed. Transactions occur in 5 seconds.
- Accessibility. Stellar can be used in almost every country in the world. It significantly expands the opportunities for financial institutions.
- Liquidity. Anchors allow exchanging assets without prior conversion. Built-in decentralized exchange provides liquidity, which significantly speeds up the process of transactions.
Cooperation With a German Bank
In early 2020, representatives of one of the most reliable German banks, Bankhaus von der Heydt, announced the issuing of an in-house digital coin. They decided to tokenize securities with the Stellar’s blockchain. This innovation will significantly simplify the sale, as well as cut expenses. Tokens will be available only to the banks’ private investors. The general public will not access them.
Cooperation With Ukrainian Government
Earlier this year, the Stellar Foundation announced a new strategic partnership. They signed a memorandum with The Ministry of Digital Transformation of Ukraine. It implies the joint work on the virtual assets market development strategy in Ukraine.
The memorandum implies the following points:
- support the projects engaged in virtual assets;
- the development of cryptocurrency market in Ukraine;
- implementation and regulation of stable coins turnover in the country;
- encouraging the development of digital assets of the National Bank of Ukraine.
The Stellar team plans many improvements for 2021. They are working on updates that should lead to new technology use methods worldwide. More companies are introducing distributed ledger technology into their business processes every year. For example, Bankhaus von der Heydt uses the Stellar blockchain for securities tokenization. It indicated that this technology is widely used.