XLM Award – How Stellar Network Is Revolutionizing the Global Payments Industry | Fintech zoom

overview

Stellar is an open source network. It is designed for global financial institutions dealing with currencies and payments to work together as a single network. It helps create, trade and send digital currencies in almost all forms like bitcoin, dollars and much more to any place and person worldwide. This platform connects payment systems, banks and people at a low cost. It also helps the users to send currencies on the network all over the world. Jed McCaleb, Stellar’s founder, is also a co-founder of Ripple. In fact, Stellar was developed from the Ripple protocol.

What is stellar

• Stellar Lumens is a decentralized protocol for converting digital currencies into fiat money that enables cross-border transactions between two currency pairs. The term “Stellar” refers to a virtual or digital currency developed by the Stellar Development Foundation.
• Stellar is traded on various cryptocurrency exchanges under the Fintech Zoom symbol XLM. The Stellar network is a blockchain distributed ledger network. It connects payment systems, people and banks and enables cross-border, low-cost transfers of assets and payments.
• Stellar processes millions of transactions every day. In addition, Bitcoin, Ethereum, and Stellar rely on blockchain to keep the network in sync and up to date. Stellar is seen as an efficient, cheaper and faster blockchain system compared to other typical blockchain-based systems.

Faster transaction times

Although multiple banking systems allow instant transactions, these systems are not interconnected on a global scale. In the globalized economy, there is always a need for instant payments. This emergency enables companies to operate efficiently. It also enables governments, NGOs, and individuals to send instant funds for putting their strategies into practice. The new norm of the Stellar network complements instant payments. This is achieved through Stellar’s independent distributed ledger technology. An important fact is that the technology is different from the standard banking system in that transfers are made within seconds.

Less fees

When sending global payments, users have to pay high fees. However, there is a fixed transaction fee of $ 0.00001 XLM for transactions over the Stellar Network regardless of the market price. Thus, the global payments via Stellar help to send money instantly. It’s just as easy and quick as sending an email.

global presence

The Stellar Network is not bound by geographical boundaries as it is present worldwide. The combination of SCP and the distributed ledger allows Stellar to operate independently of the regulations governing financial institutions. In addition, traditional financial institutions are bound by regulations and local standards, which require processing systems and payment gateways to charge high fees.

Decentralized

The traditional system is based on central networks. Here, the financial institutions must validate and approve the transactions in accordance with the regulatory standards. However, decentralization not only enables efficient and fast money transfer, but also follows the validation process through standardization. Stellar works on a network with decentralized servers called Stellar Cores or Validator Nodes. These nodes enable effective decision making to validate the transactions made in the Stellar Technology Ledger.

Includes all entities

The financial system in different parts of the world often has difficulty accessing the monetary systems. There are also some constraints in the monetary system, possibly due to inadequate infrastructure and inflation. The Stellar network provides stability for remittance services as well as currency exchange. In this way, countries struggling with global economic growth can take advantage of a comprehensive and comprehensive system of Stellar.

XLM prediction

• Like other cryptocurrencies, Stellar also runs on a decentralized network. It is based on distributed ledger technology that keeps the network in sync. Stellar’s blockchain increases the efficiency of its network, saves time, reduces costs and helps the network conduct efficient cross-border transactions. Although Stellar is similar to Bitcoin and Ethereum, it is portrayed as a payment rather than a cryptocurrency.
• January 2021 turned out to be a lucrative month for Stellar. Its value rose 60%, and recently Stellar also hit the two-year high of $ 0.41. This price hike has significantly improved Stellar’s position by making it one of the top 10 largest cryptocurrency lists.
• According to a recent XLM forecast, XLM is well suited for long-term investments. Based on the latest XLM forecast, a long-term increase of + 197.9% is expected for the next three years.

Stellar’s future prospects

• Stellar has partnered with financial institutions to provide its distributed ledger technology services to facilitate international money transfers.
• It has worked with a few companies in Africa, Asia and Europe, including the well-known ICICI Bank. The bank will use Stellar’s infrastructure to manage money transfers across India and other countries.
• In Europe, Stellar is working with Tempo Money Transfer and developing a transfer solution. In Africa, Stellar works with Flutterwave for mobile cross-border payments and coins.

Conclusion

Stellar has become one of the best platforms for making cross-border payments with ease. In addition, accurate money transfers can be made directly anywhere in the world within seconds. Leveraging distributed ledger technology, Stellar provides the units required by removing the barriers and creating a global community. Stellar thus enables a bright future in which people, banks and financial institutions can process money transfers quickly and at affordable costs.