Stellar Payments: Revolutionizing Today’s Ecosystem

Gone are the days when you only had the option of trading fiat currencies and crypto tokens on separate platforms. With Stellar blockchain, fiat and cryptocurrencies can coexist under a single roof, providing traders and investors the liberty to exchange any currency pair and make the best out of the market. Although considered to be a pretty novice platform compared to other blockchains, like Ethereum, Stellar’s superiority lies in its financial inclusiveness and a complete decentralized architecture.?

Truth be told, it has become a hyped word in the finance market, compelling investors and traders from across the world to explore more of its products and financial services. From fast-paced Stellar payments to the built-in Consensus Protocol, it has created a difference in the decentralized ecosystem owing to its unique features and enhanced capabilities. Whether you are a first-time trader or an expert person, it has got something for everyone. This being said, below we have covered the major areas where Stellar has made a remarkable revolution with its blockchain and payment system.?

Table of Contents

• Stellar For Payments
• Stellar and Its Financial Inclusiveness
• Stellar For Asset Tokenization
• Stellar Smart Contracts For Supply Chain
• Conclusion?

Stellar For Payments

One of Stellar’s major real-world applications is in payment operations and processes. It allows users to trade in both fiat and cryptocurrencies and thanks to the decentralized feature, no third-party authority or issuer is involved. Hence, transactions can be completed at lightning speed without any interference. Some of the major ways in which Stellar payments have revolutionized the finance ecosystem across the world are:

• Cross-border Transactions: Usually, when a person wants to make payments to another account but with different geographical locations, several governing and security protocols are implemented at the borders. It not only delays the transactions but also leads to unprecedented failures. However, with the Stellar blockchain, this problem has been resolved now. It allows cross-border transactions without forcing users to go through security or governance checks.?
• Micropayments: Stellar’s native currency, Lumens or XLS can be used to compensate for the transaction fees needed on the blockchain ledger. Hence, users won’t have to bear any additional costs or suffer from significant deductions from their profits. Additionally, Stellar allows users to pay micro amounts without any limitation on the minimal value.?
• Remittances: Another way in which Stellar payments can be used is for remittances. In other words, users can send payments as a form of gift to another user, with or without the same geographical location.?
• Loan or credit: Thanks to the native currency of Stellar, users can take a loan or credit and use the same for some other tasks. However, there are a lot of prerequisites that should be met for the loan to be granted through Lumens.

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Stellar and Its Financial Inclusiveness

One of the major ways in which this platform has introduced a vast sea of opportunities is through Stellar financial inclusion. It is a one-of-a-kind feature that allows users to trade both fiat and crypto tokens on the same platform without any additional verification or issuance process. Additionally, Stellar provides unhindered access to financial services and products to users who do not have the privilege of using the conventional products offered by retail banks.

Another major way in which financial inclusiveness has been defined at Stellar is for unbanked users or the ones having no bank accounts. They can easily invest in fiat currencies and exchange them to crypto tokens without having to rely on a pre-existing bank account at a conventional financial institution. Thanks to this specific feature, the platform has revolutionized how users can use different forms of finance products and services, like loans, credits, currency exchanges, and many more.?

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