Stellar (XLM): Easing cross border payments in a cost and time effective framework
Stellar (XLM), an open-source payment technology platform is a new addition to the crypto family that is gaining momentum at the moment. Its objective is to involve financial institutions and make significant reduction in price and time that are essential for cross-border transfers. This currency bears a range of similarities with Ripple.
What makes it popular?
Founded in 2014 by Jed McCaleb and Joyce Kim, Stellar eases access to funds irrespective of location and time.
Owing to its range of decentralized servers that are known for being hassle-free, with zero downtime and being updated every second, Stellar is a new favourite of crypto users. These characteristics are not common among other cryptocurrencies. Stellar employs a consensus algorithm that offers decentralized control, low dormancy and lowers inactivity. All these factors have summed up to gain users’ trust.
Who is Using Stellar (XLM) Technology?
Stellar’s circulation is not the only reason for its popularity. It is also the infrastructure that gives the users confidence to invest in the coin and adopt the same due to the value proposition that it offers to its strategic partners.
In 2016, a dominant technology consulting firm Deloitte partnered with Stellar to develop a payments app. At a conference in 2017, Jed McCaleb, the founder of Ripple confirmed that 30 banks have signed up to use Stellar’s blockchain for cross-border transfers. Stripe, a payment service provider is open to implement Stellar on its platform, by replacing Bitcoin.
Although Stellar was founded in 2014, it actually gained spotlight last year in October, when it announced its partnership with IBM. Revamping the payments technology, IBM and a number of banks have begun using digital currency and blockchain software to make cross border payments throughout the South Pacific. The cross border payments will be carried out in countries like Australia, Fiji, and Tonga, enabling connections between small businesses, non-profits, and local banking institutions to accelerate commercial transactions.
Stellar and IBM are parts of a project called Hyperledger Fabric, intended to build open source blockchain tools to back payment infrastructures. The IBM-backed blockchain project when companies are engaging to figure out efficient new ways to conduct global money transfers.
This step indicates that XLM is tailored for advanced opportunities in the payments sector. This will not only help IBM, but also will help Stellar to benefit from these.
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