It is no wonder that Bitcoin created a spark in the cryptocurrency market in 2017 by reaching an all-time high, among all the other currencies ever existed, which has given rise to a number of other cryptocurrencies including Stellar who fight with each other for its financial adoption like Bitcoin. Bitcoin, although is the most popular cryptocurrency, it’s limited market capital is one of the setbacks along with its scalability.
The Stellar network was founded in 2014 and one might confuse it with another most trending network protocol, Ripple. It is a fact that the founder of both the networks is the same person Jed McCaleb. He had founded Ripple earlier but had to depart from it due to the difference in opinion between him and the other board of directors at Ripple. Along with Joyce Kim, he initiated the Stellar project in 2014 in order to provide a cheap and quick settlement system. The open source software is registered under the Apache Licence, it’s open source nature makes it free to use by anyone interested.
The Stellar network is most famous for settling the transactions anywhere between 2 to 5 seconds, which facilitated the users of the Stripe payment Protocol, in order to settle the transactions as fast as possible. This can be considered as a foundation for partnering with the most famous IT company, IBM.
Many cryptocurrency network protocols are, to an extent, centralized. This is evident from the incident when McCaleb funds were frozen on the Ripple network due to the disagreement between him and board members, this incident is a direct example of how one can control others funds according to their wish.
The Stellar network seems to be incorporating the best features from both the Ripple Network and Bitcoin protocol. When it comes to attributes like transaction speed, transaction cost, and scalability, Stellar seems to be providing a viable solution. The Stellar network aims in ending the Global poverty by reducing the transaction speed and cost. This philanthropic principle of the network sets it apart from all the other cryptocurrency protocols.
The native currency of the Stellar network, Lumen is inflationary in nature. Each year 1% of the cryptocurrency is created and the fees are recycled. The Consensus Protocol used by the Stellar core is known as the ‘Stellar Consensus Protocol.’ The consensus protocol has four important attributes. They are.
A number of Stellar servers are installed across the world which comes to a consensus every 2 to 4 seconds to verify the authenticity of the ledger. A ledger has a record of all the accounts on the network. A regular verification makes sure that no data is being tampered with on the network.
The Stellar network is so powerful that it is estimated to single-handedly replace the Ripple and Bitcoin network. Stellar is putting a firm foundation with its decentralized nature from Bitcoin and a fast settlement system from Ripple.
The cryptocurrency is currently trading around $0.232908 and is on the 7th position according to the Coinmarketcap with respect to its market capitalization. The future of this particular cryptocurrency seems to be highly promising as it is backed up by robust companies like IBM and KlickEx. Also, companies like Deloitte have incorporated this system and working four weeks of time they experienced a 40% expenditure drop in their banking sector. IBM along with 12 other banks across the world have joined hands for the faster transaction of financial assets throughout the world.
The cryptocurrency system incorporates an amazing pair of the feature, i.e high returns, and low risk. The Ripple network is currently under risk due to its Centralised nature, this is where Stellar network plays a major role in taking ahead of the world economy. Although the price chart seems to be bearish, on a short-term basis, the cryptocurrency is to experience a widespread adoption, when viewed from a broader frame of reference.
In the current situation, most of the cryptocurrencies which existed a few months back have completely vanished now. Hence, one must be careful about their investments as their market is completely subjected to risk. Although the cryptocurrency is experiencing widespread adoption, a sudden downfall might happen due to unexpected circumstances.