From all the researches I have done on Stellar I was pretty much blown away by the already expectable success potential. When you look into all the different aspects what defines a successful crypto currency in the long run, you can find out lots of it applies to Stellar. I tried to priorize the different aspects I gathered together from high to low. But in the end you could also switch them around or change the order, depending from which angle you look at it. Stellar has it’s fingers already in a lot of stuff. Let’s have a look at what XLM Stellar Lumens is about and which market shares are in target of the Stellar rocket.
Stellar doesn’t use a proof of work protocol like for example Bitcoin, better, it has it’s own network protocol – the Stellar Consensus Protocoll (SCP). Similar to Ripple, where it was hard forked from in 2014. Currently there are ~18% of all XLM in circulation. There will be a controlled inflation over time which will benefit every holder of Stellar Lumens.
Stellar has also a little bit good of everything, which other crypto currencies stand for – or try to:
- Stellar offers very cheap and fast transactions (also for different crypto assets), like what XRP Ripple also aims for
- You can also use Stellar for creating an ICO and get your tokens out in the world, like with ETH or EOS
- Stellar supports decentralized exchanges & hosts DApps, like EOS
- It’s open source, like many other successful projects, also before the rise of blockchain technology (for example Linux, PHP, MySQL, …)
- Stellar already has lots of important use cases and partnerships in “the real world”, like any successful project needs at some point. Being in the position of having these partnerships already now is pretty rare and shows the seriousness and value about the project in its own way!
Very high scalability potentials
With the planned integration of the lighting network Stellar will not only be able to manage 1,000 transactions per second (like now), but up to millions! This is the kind of improvement any blockchain technology operating in the future will have to make or being able to deliver somehow. “Millions per second”, this is easily said, but most blockchain technologies today are not even near that possible capacity. So this alone creates some great variety of usage in future scenarios.
The partnership with IBM was confirmed back in October last year and secures the use of XLM in IBM real world environment blockchain solutions soon. IBM’s confirmation of not creating their own blockchain makes XLM further a high class candidate for the main blockchain technology used in IBM’s business solutions. Probably starting in the banking sector, this does not mean it has to end there for the usage Stellar can all potentially offer. Once the use for some big real world applications can be shown and creates some positive results, there may be very prosperous times ahead for Stellar Lumens.
One example besides the use for transactions or exchanging different assets can be seen by a project from Veridium Labs with IBM. They are going to create the “Verde” token on the Stellar blockchain, which will be a “carbon credit token”. This will allow businesses to trade “carbon credits”. In other words this creates a possibility for businesses which create pollution in one place to compensate it by paying for some new trees to be planted or something similar.
The SHIFT and Lightyear partnerships will make it possible for a big audience to profit from the so far unleashed potentials of Stellars fiat to crypto transaction advantages.
Deloitte Digital Bank is one of the world’s biggest professional service provider which will use Stellar for some of their payments. There will be instant transactions possible with the verification possible with a driving license or ID. This can reduce the time for payments in a lot of useful scenarios!
Stripe invested in Stellar 3 million USD, back then when it was a start-up. Being an online payment processor they have more than 100,000 businesses. Stripe quit their support for Bitcoin, so this makes Stellar an obvious candidate to be their next choice for crypto payments.
The Wanxiang Group is a big name in china regarding different markets, for example the automobile industry. They created an interesting project “WandCloud” which is an open-source blockchain protocol collaboration project. Stellar is one of several others developers choosen to be included in this co-working of chinese and other blockchain developers.
It’s interesting to see that XLM has even made some connections to the normally “unreachable” China markets. These are all some massive partnerships. Alone IBM or some of the other … especially all of them together! But this isn’t even a complete list. So there are probably way more partnerships already which I didn’t mention and still be even more coming, like may be …
… a Coinbase inclusion?
This is not a secure thing, but XLM has been included in Coinbase’s announcement of new tokens they want to explore for potential next inclusions on their platform. As anyone knows, being around in the crypto world a little bit, this could only mean good things for future prices and amount of people using it as their “regular” cryptocurrency.
Stellar offering very fast transactions in high speed makes it an excellent choice for micropayments in the world of online shopping and similar uses in general.
USD pegged Stablecoin “USD Anchor”
There will be a stablecoin on the Stellar blockchain which is fully backed by the US Dollar currency. This creates more trust regarding the use of such coins. IBM also sees lots of potential for the use of this coin in the future from financial institutions for different mainstream use cases which are for example food tracking, global trade and supply chain.
Huge potential market shares
In the end you could say that the main targets of Stellars customers are in the financial sector. The world of banking transactions with SWIFT and similar. So in order to make the mission of Stellar somehow successful, it probably won’t need much of this market share to accomplish that.
Because of Stellars very low fees it is not only very attractive for the use in “normal” transactions, but also in things like initial coin offerings, especially from a developer perspective. Compared to for example ETH you can create your ICO so much easier and cheaper on the Stellar network. There is also a decentral exchange built into the Stellar blockchain which will allow the trading of newly created coins instantly after their creation.
One of the first Stellar Gambling DApps
At my researches for Stellar DApps I came across https://stellardice.com which offers already a possibility to play some dice like game by depositing XLM. It has a nice, clean interface and you can bet on a number being less than 1 to 64,000:
As you can see, this doesn’t really look much different compared to the DApps on EOS today.
My transactions of the betting went through pretty much instantaneously. And best thing I already like about XLM: My deposit and withdraw went through both in under 5 seconds! Not to mention there was like no fee on each one.
What defines a star? Being individual and unreachable, making the impossible possible!
In the end it’s all a matter of probability. Stellar shows in different aspects that they not only want and can, but pretty much are bound to be successful from all the different positive aspects I could find and list here. There can always be something else having more success because of things out of your control. But from the possible efforts Stellar could add on their own – for the help to their future success – they did what they could, and did it in very good ways. So even with the future being unable to predict, Stellar is prepared and did their homeworks!
These are all my observations and are only my opinion. These are by no means any investment advices! Do your own research before investing into crypto currencies or any investment.
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