Stellar Lumens is an open source, cross-border payment solution developed using blockchain technology. The team behind Stellar Lumens saw a need for global payment solutions that are cheaper, faster and more flexible than existing models.The mission of Stellar Lumens, a non-profit organization, is to fight poverty. They tackle poverty through simplifying the process of sending remittances to underdeveloped countries.At its core, Stellar Lumens is similar to many other digital currencies in that its distributed ledger is stored on a decentralized network. What sets Stellar Lumens apart from other digital currencies, however, is that it can exchange currencies directly on its network. It does this through the use of anchors, trusted parties on the network, where users can deposit and withdraw funds.
The network does more than just transfer money. It also functions as a foreign exchange (forex) platform. Users of the network can automatically exchange currencies at the best foreign exchange rate. The network can also act as an exchange. Bidders can set an order for higher or lower than current market value, hoping the market swings their way.The platform can also exchange currency in a variety of ways. For instance, the platform connects two individuals trying to trade currencies with corresponding orders, for example someone wanting to exchange CAD for Euro and another wanting to exchange Euro for CAD. It could also use its own digital currency, Lumens, as intermediary in the transaction. If there were no corresponding orders to connect buyers or use Lumens as intermediary, the platform automatically logs as many transactions on the ledger as needed to complete the order. For instance, if someone had CAD and wanted Euro, but no one had Euro that wanted CAD, multiple orders would go through. It would track, for example, someone exchanging Euro for USD, someone exchanging USD for CAD, and then taking the original CAD to Euro order to complete all transactions.
Stellar Lumens has just announced many new partnerships with respected companies IBM and KlickEx.KlickEx founder Robert Bell grew up in Oceania and has “first-hand experience with the frustrations and inefficiencies of sending payments through underdeveloped payment corridors”. Bell aims to alleviate these problems through more cost-effective and efficient ways to send money. Given their focus on underdeveloped countries, Stellar Lumens makes a perfect partner.Stellar Lumens has also recently announced a partnership with Deloitte, with the aim of developing a cross-border payment applications.Based on the high profile global partnerships with Deloitte and IBM, Stellar Lumens has a lot of potential. Although still in its infancy, Stellar Lumens seems poised to help bring the global village even closer by alleviating the restriction of the flow of money across borders. Image credit: Stellar
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