Stellar is a distributed hybrid blockchain platform that aims to help facilitate cross-asset transfer of value at a fraction of a penny. Stellar is aiming to be an open financial system that gives people of all income levels access to low-cost financial services.
Through the use of its intermediary currency Lumens (XLM), a user can send any currency that they own to anyone else in a different currency.
For instance, if Joe wanted to send USD to Mary using her EUR, an offer is submitted to the distributed exchange selling USD for EUR. This submitted offer forms is known as an order book. The network will use the order book to find the best exchange rate for the transaction in-order to minimize the fee paid by a user.
This multi-currency transaction is possible because of “Anchors”. Anchors are trusted entities that hold people’s deposits and can issue credit. In essence, Anchors serves as the bridge between different currencies and the Stellar network.
Lumens are the native asset (digital currency) that exist on the Stellar network that helps to facilitate multi-currency transactions and prevent spams. For multi-currency transactions, XLM is the digital intermediary that allows for such a transaction to occur at a low cost.
In order to prevent DoS attacks (aka spams) that would inevitably occur on the Stellar network, a small fee of 0.00001 XLM is associated with every transaction that occurs on the network. This fee is small enough so it does not significantly affect the cost of transaction, but large enough so it dissuades bad actors from spamming the network. The collected fee is then redistributed and added to an inflation pool. This inflation pool releases Lumens at a rate of 1% each year.
On Monday, March 18, 2019, six international banks signed up for the new Stellar – IBM’s blockchain-powered payments network “World Wire” to issue their own stablecoins. At the moment, World Wire has over 44 banks on their service. Their primary aim is to enable near real-time international settlements between banks.
Blockchain World Wire
It is a distributed ledger technology payment system which just went live. It will provide an infrastructure for clearing and settling cross-border payments in almost real-time. Also, at the same, time will reduce transaction costs. This will be done by removing third-party intermediaries from the process. IBM claim that they are handling around 60% of the world’s transactional systems. This provides World Wire with a advantageous head start. Moreover, BWW currently supports more than 47 currencies across 72 countries.
Six Banks Already Applied
It looks like JPM Coin started a new trend – banks issuing their own coins. At the moment, thanks to Stellar and IBM, Banks can easily apply to their own stablecoins that would be pegged to their native currencies. So far Brazil’s Banco Bradesco, South Korea’s Bank Busan, Philippines’ Rizal Commercial Banking Corporation and three other banks have filed an application.
“We let the market drive the expansion and selection of the network incrementally. We are really feeling excited that we are on a roll to build something new and revolutionary that’s really going to change the landscape of cross-border payments,”
says Jesse Lund, the head of blockchain solutions at IBM.
Stellar to Issue its Own Stablecoin
Also, IBM partners with Stronghold, a Stellar-based, USD backed asset. They are also in the talks of developing their own Stellar network’s first stablecoin. It would disintermediate legacy bank settlement systems by introducing the XLM token as an efficient, immutably-tracked settlement instrument for fiat currencies between institutional parties.
“Our view for stablecoins is really that they should be more broadly accessible and what World Wire seeks to do is to provide fungibility of digital assets across financial institutions,” says Lund.
After a snowy weekend, December 3 hits the calendar, and unwillingly, to all the cryptocurrency traders this makes them reminiscent about the bull run we experienced last year. One year ago, we thought that this was the major crypto adoption, and some of us couldn’t see how that could be going somewhere else, but up. ICOs were booming, influencers were in the head of the game, and it almost seemed like you could invest in any of the projects that came out because a x10 profit was self-evident.
Nothing of that can be said about this December, as we open up coinmarktetcap.com, and yet again we see only red accents. Market cap was three times larger than now, and already we can see some significant changes in the top 10 most popular crypto-top
Exactly one year ago
As we can see, the picture back then was a lot brighter than now. Bitcoin was trading at $11,176, Ethereum was the second largest cryptocurrency, Dash was nr. 5 and BitConnect was still scamming people like nothing. Monero, Bitcoin Gold and IOTA have left the top 10 after a year, but at the same time, Stellar, Tether, EOS and Bitcoin SV have replaced them. You might want to think that there’s nothing changed, but the positions of some cryptocurrencies, but think again.
If we look at the current market cap for each coin which has remained in the top 10 list, we see a staggering decline in value. For example, Bitcoin’s market cap on December 3, 2017, was $186,851,799,628, comparing to today’s $69,929,197,213, which is almost three times less. You can observe the following with other cryptocurrencies as well. Litecoin had $5,443,078,362, but now rests at $1,915,803,929, also, three times less.
The good thing
Let’s not talk about only the bad things we get from these last year statistics and let’s focus on more positive things. For example, the first thing that we can see is successful projects and cryptocurrencies which endured the year-long bear market and managed not only to develop their idea further but to maintain their community’s interest in the project.
The other rather positive thing is that if we look at 24h volume for each coin and compare it with last year, you can see an increase despite the price fall, despite the market cap, which would lead us into thinking that cryptocurrencies today are used more than they were a year ago. Bitcoin’s 24h volume today is $5,164,916,673 which is shy of a billion larger than a year ago when it was $4,826,067,051. Interestingly enough, Ethereum has seen the biggest increase in 24h volume, despite all the FUD whats revolving around it. Last year Ethereum circulated $822,953,290 in volume, but today $1,867,401,151. That is a little over one billion more, which makes you think – then where is all the money at? Ethereum is the absolute leader in increased volume throughout one year.
However, the significant volume increase only applies to the top 3 coins we see today. Others had a minimal increase, some a minimal decrease.
If we made a competition on who lost the most volume in one year – it’s obvious who’d win. BitConnect!
As mentioned above, today cryptocurrency markets are coloring the picture red, with rare green accents. Bitcoin is trading at $4,017; XRP at $0,36; Ethereum at $113,53 and Stellar, which recently jumped to the no. 4 position going pass Bitcoin Cash, is trading at $0,15. The bear is still winning over the bull, and it doesn’t look like some time soon this is going to change. One of the most surprising assets is Bitcoin SV because in only a couple of weeks it has managed to jump in the top 10 most popular cryptocurrencies and takes a decent share of the market.
However, the good thing is that volume is increasing, and Bitcoin is still the king of crypto, it’s dominance since last year has fallen by only 3%. We need to reconsider how this past year has affected the crypto market, either yourself as a trader/hodler/enthusiast. Can we learn from past problems or not? That is the question. If another bull-run emerges – are we also going to be as blind as during the previous one? Hope not.