Where other cryptocurrency technologies are focusing their efforts towards the establishment of a separate payment system, Stellar is a blockchain technology which aims to disrupt the modern banking network by creating a decentralized banking system. Stellar has managed to capture the market quite quickly and has made a place for itself in the top ten most popular cryptocurrencies in the world. It is also the fifth largest cryptocurrency by market capitalization.
Stellar aims to revolutionize the banking system and that too with their support and involvement in the whole transaction process. The concept that the technology talks about is very simple. A person can pay a banking institute some fiat currency and the receiver can collect some other fiat currency at the other side of the globe, with Stellar Lumens working as an intermediate currency. The implementation of blockchain technology with in the whole banking system will heavily reduce the transaction fees and also make it faster. Since this whole concept depend on the availability of huge currency reserves at every corner of the world, it can only work hand in hand with banks.
This brings us to the foremost issue with the technology, which is also a major one. The banks are not interested and cannot possibly allow the implementation of Stellar blockchain as it will reduce their impact and also their profits.
Stellar blockchain is the vision of Jed McCaleb and Joyce Kim. McCaleb is an experienced individual of his field and has owned many different startups before like eDonkey and MtGox. He was also a co-founder of Ripple back in 2012 and forked off the Stellar network to work on his own cryptocurrency.
However, the development around Stellar Lumens has not lived up to its hype. The team has missed a number of deadlines and project launching has been delayed multiple times. Also, only a mere 20% of Stellar Lumens have been released to the users while the team plans to release the remaining 80% in the next 10 years. The token distribution does not look very fascinating to the investors.
Talking about the notable partnerships, Stellar is looking forward to bring payment processing companies on to the bandwagon. Interestingly, the CEO of Stripe, a well-known online payment processing company, is an advisor to Stellar’s team. On the sidelines, it is also working with IBM to create a spin-off version of Stellar that will be user-centric and will promote the usage of IBM services and Stellar’s platform.
The community supporting the development of Stellar is very well-established. Reddit has over 100,000 active subscribers on Stellar’s official page. It has also grown to be the fifth largest cryptocurrency technology in terms of market capitalization. There is no doubt that Stellar is a very promising technology that aims to provide financial freedom in terms of trading limitations. However, the only obstacle in its successful implementation for now seems to be the possibility that banking institutes would not be in its favor. If, somehow, it can get banks and other payment processing companies to work together, it can become one of the most influential intermediate cryptocurrencies.