Stellar : Revolutionizing the Financial Industry


Founded in 2014 by the ex-owner of Mt Gox, Jed McCaleb, Stellar is a decentralized payment network that makes it easier to convert fiat to crypto. As Jed was involved during the early development of Ripple, he evolved Stellar from its code base.

It has since been backed by large tech and financial institutions, including Stripe, IBM, and Tempo. While the technology seems solid, the success of the coin largely depends on establishing relationships with international payment gateways and banks. Of course, it also utilizes block chain technology while remaining open source in the process.

Unique Use Cases:

Sales force’s Deloitte Digital Bank is one of the first financial applications on the platform. It is a cross-platform and international banking solution that was quite experimental at its launch.

Rain Check has built a customer loyalty rewards program on the Stellar block chain. As expected, the platform is decentralized and is malleable to fit reward schemes for any company.

IBM’s Stronghold has also entrusted Stellar to host their Tether killer, in which they will back the token with assets and peg it to the USD. This will be a part of a larger business transaction network that the company is developing.

The Mobius Network utilizes the Stellar block chain to host their decentralized app store. This includes a built-in payment platform and aims to compete with the Play Store.

The ZED Network chose to use Stellar as the base of their money transfer operation. Targeting a wide variety of developing countries, the company may need to create thousands of tokens, in which the stellar network has the most scalability.

The Stellar ICO

The Stellar network is also capable of handling Initial Coin Offerings (ICO) just like Ethereum. Unlike Ethereal or other token platforms, Stellar tries to solve the problem of poor scalability and high Gas prices to create contracts.

The smart contract syntax of Stellar is simplified as to prevent exploits being written from within contracts. While Ethereum’s programming language allows for some intriguing applications to be written, there have been instances of clever scammers stealing millions of dollars with deceitful contracts.

To prevent bad characters from creating outright scams on the network, which is prevalent with Ethereum, ICO creation has a know-your-customer approach. This requires the disclosure of team members and complying with international financial regulations.

Since Stellar does not need to rely on third-party exchanges, tokens on this platform have more liquidity. This cuts out the time wasted on delays and fees when transferring between exchanges. The built-in exchange is completely decentralized and allows an instant listing of any token on the network.

Faster Is Always Better

Taking a look at what happened with Bitcoin and Ethereum during the large bubble in 2017, these networks came to a crawling halt when loaded with traffic. This is why cryptocurrencies are now focusing on speed and scalability

Just like Ripple, Stellar has designed the network so that transactions are confirmed within seconds, not minutes. The cost is also scalable as it only takes well under a penny to process 100,000 transactions. This is due to its network of distributed validators, which is similar to Ripple’s network.


Stellar is definitely an undervalued cryptocurrency considering the technology and corporate backing behind it. Crudely speaking, it’s like merging the best of both Ethereum and Ripple to create an instantly gratifying token platform. Although it does not have the same hype as the top 10 altcoins, it may break into emerging markets, especially with their recent Islamic Finance Certification.