Stellar is an open network that allows participants from all over the world to transfer any kind of currencies, cryptocurrencies, securities, and other assets within impressive timeframes.

It all began with the release of Stellar. Within the year of the platform’s release, the developers created the Stellar Consensus Protocol (SCP), the underlying consensus algorithm of the Stellar network, which provided “a way to reach consensus without relying on a closed system to accurately record financial transactions.”

It has four essential properties:

• Decentralized control

• Low latency

• Flexible trust

• Asymptotic security.

This network and its token, lumen (XLM), quickly gained popularity among cryptocurrency enthusiasts and tech-savvy online audiences. Due to the impressive capabilities provided by the SCP, Stellar became a partner with IBM, Deloitte, Mobius, and other well-known companies shortly after its launch.

If you wonder why these companies consider Stellar and SCP the future of online payment systems, read further.

High Transaction Delivery Speed

The speed of transactions is one of the most important performance indicators when it comes to financial operations. Stellar meets the speed requirements because it allows sending a payment from one country to another within 5 seconds!

Such an unprecedented speed of international financial transactions makes the existing money transfer methods obsolete.

The distance between the sender and receiver doesn’t slow down the process of money transfers with Stellar. This could be the deciding factor for many people all around the world who need to make quick payments to clients, businesses etc.

Moreover, Stellar helps its partner companies to manage mobile financial platforms more effectively. Even when the recipients utilize the services of different providers, mobile money travels from one account to another in less than 5 seconds.

It is worth noting that Stellar accepts not only American dollars and Euros but any other currencies, including Mexican pesos and Russian rubles. The network currently completes the currency exchange automatically at the lowest international rate and the highest speed (the system processes this simple transaction in less than 2 seconds).

Free Integration

Every company, which wants to enjoy all the benefits Stellar can provide, should pass through the integration process. In other words, it should adjust its system to the network’s requirements. This process can take from 120 to 200 hours of technical development, but it always depends on the skills and knowledge level of IT specialists at a concrete company.

The great news is that Stellar provides access to the network for any users, which comply with the basic rules and requirements, at no cost. Moreover, it gives software, instruments, and documentation, which help companies run the configuration process smoothly.

Stellar decided to get users free from the additional financial burden by funding its operational costs by tax-deductible donations. Also, it reserved 5% of the initial lumens to keep the network running.

Small Transaction Fees

Stellar is stand out of the crowd because of its extremely low fees, which literally any user in the world can afford to pay. Today, the base fee is equal to 0.00001 XLM (this is a fraction of a fraction of a penny). There are no other networks in the global market, which could offer alternative solutions at such a low price.

Stellar works great for micropayments: $0.01 is enough to pay for around 600,000 different transactions. This is an outstanding solution, which can dramatically cut the costs and make international trade much more effective. It is worth mentioning that a sender, not a receiver, is responsible to pay these small fees.

Outstanding Scalability

More and more startups are claiming that Ethereum and Bitcoin turn to be outdated solutions. Experts are extremely concerned with the existing problems, which relates to scaling.

In contrast to Ethereum and Bitcoin, Stellar doesn’t have any network congestions. It can boast with a very high processing rate – have any network congestions and can boast with a very high processing rate of 1000 operations per second.

The point is that if leaders of the industry are not able to provide adequate solutions on time, there is no sense to continue wasting time and money on them. It’s much better for any business to switch to the Stellar and solve all the scaling problems as soon as possible.

Security of Smart Contracts

Stellar ensure a higher level of security for smart contracts than its rivals. Stellar incorporated a brand new technology, which remains unknown in the global digital market. This secret technology is totally reliable because it supports multi-signature wallets at the protocol level.

In fact, Stellar is one step ahead of its biggest competitor, Ethereum. Everyone knows Ethereum as one of the most widely used blockchain-based distributed computing platform, but not so many people are aware of the problems it experiences with securing smart contracts.

Ethereum continues to use the contract-oriented programming language Solidity, which doesn’t work effectively in today’s world. For this reason, more and more clients, which put the security first, choose advanced technologies of Stellar. This is the most cost-effective way to protect smart contracts and blockchain assets fully.

Global Benefits

Stellar adopted the Stellar Web Auth Protocol (SWAP), which allows users to confirm the ownership of the account and to start an authenticated session to interact with a third-party. This protocol makes it possible to exchange all kind of valuable assets including securities, which should comply with strict international regulations like anti-money laundering (AML) and others. SWAP enables online and hardware wallets to transfer know your customer (KYC) data to an anchor.

Stellar uses this protocol to develop and support both: native blockchain system and ordinary valuable assets. This technology has the potential to enhance the world’s economy. It will enable 2,000,000,000 individuals, who don’t have bank accounts, to enter the global marketplace simply by utilizing ordinary smartphones.

So, it means that when you will use Stellar as a payment method, you will contribute to the facilitation of the international trade and fight with the poverty. The earlier you will start using Stellar, the more benefits you will get.

In Conclusion

Stellar makes online financial transactions extremely fast and easy. This network seems to be a magic wand, which seems to be a perfect tool for changing the world of international trade one day. The more participants will join the network, the more benefits everyone will get.

High speed, low cost, and total security make Stellar one of the best online payment methods. There is no room for a doubt that this network will keep growing in the next years.

Bio:
Pauline speaks Portuguese, English, Spanish and Italian and currently she works as a translator at translation service TheWordPoint. She travelled the world to immerse herself in the new cultures and learn languages. Today she is proud to be a voting member of the American Translators Association and an active participant of the Leadership Council of its Portuguese Language Division.