Stellar lumens XLM Bridge bitcoin Fiat

Stellar Lumens (XLM) Bridges the rift Between Fiats and Cryptocurrencies While Bitcoin Competes Against them

September 22, 2020 Off By Ayobami Abiola

Bitcoin remains the father of blockchain technology and cryptocurrencies as it brought a peer-to-peer method of completing transactions without having to trust intermediaries. Transactions are also transparent and immutable after they have been recorded on the Distributed Ledger. Many Bitcoin Maximalists think Bitcoin is a fiat killer. They believe it has many advantages over fiats.

But Bitcoin cannot process micropayments or transactions efficiently because of its huge transaction fees. Bitcoin, because of the many people processing transactions at the same time all over the world, completes transactions slower than many centralized e-payment processors like Paypal, and Visa.

Stellar does something better, it makes micropayments possible with a very low fee. It is built originally to connect the blockchain technology with the world of fiats. This is to make sending money secure, transparent, and fast no matter the distance. The Stellar protocol remains one of the first blockchains to allow easy creation of fiat-backed stable coins. 

While responding to Coinmarketcap’s questions in an interview, Jed McCaleb, Cofounder of Steller and currently the Chief Technical Officer (CTO), on September 20th stated:

“This is something that basically Stellar spends all its time working on. The whole original design of Stellar is that you can have fiat currencies and other kinds of forms of value run in parallel with each other and with crypto assets. This is super important to drive this stuff mainstream.” 

To drive real adoption for blockchain technology, there needs to be a way to  bridge the crypto-verse and the traditional market. Jed opined:

“It’s a necessary thing. I don’t think there’s another route, really. There’s obviously some people that will just jump straight into holding Bitcoin. But to get mass adoption, you need a way that people can use the currency that they’re used to using — like dollars or euros or pesos— in this crypto manner.”

And with the all-new SEP-30 (Key management and recovery), Stellar is actively providing adoption grounds for new people who are scared of holding cryptocurrencies for the risk of losing their keys. While introducing SEP-30 weeks ago, Denelle Dixxon, CEO and Executive Director at SDF wrote:

“The … point is that this process means a user doesn’t have to maintain a backup key on her own. In fact, a user doesn’t have to keep track of a key at all. SEP-30 allows the user to manage her entire account in ways that are familiar to her today in her other digital relationships, like through SMS or email verification.”Stellar is not stopping at just onboarding more people to the blockchain by providing an infrastructure that makes sending funds cross-border easily as sending emails, securely, and seamlessly. Stellar is running various contests for developers and other people to reward them for building and participating in the Stellar protocol. An example is the recent Stellar battle for 20,000 XLM Kelp Trading Bot which will reward the top three users for providing educational content.

Advertisement
Advertisement
Share
  •  
  •  
  •  
  • 1
  •