Among the items that have drawn a lot of attention recently is Stellar (XLM). The interest in this financial system has been mainly brought about by the recent news coming from IBM. The company has been disseminating information about investing in the platform to ensure its spread around the globe.
IBM’s interest in the platform reflects the rising demand for tokenized assets in the market. The cryptocurrency market has recently seen some drawbacks but the momentum has definitely not waned. Digitalized assets are still as attractive as ever and as reported by Cryptotraderpros.com, crypto tokens appear to have won the asset war against the slow-moving stocks.
A lot of potential for both blockchain and Stellar (XLM) still exists, but from the recent happenings, it is now easy to see that a new dawn for transfer of value via the internet is close.
The Background of Stellar
While this platform is just gaining momentum, it has been around for a while now. The platform was developed as a Bitcoin hard fork of Ripple (XRP) by Jed McCaleb, who is no longer at Ripple. There were, however, challenges with the system created and there was no consensus on the direction the fork would take.
On the part of Bitcoin, there was a clear path that they wished to take, and that was to adopt a peer-to-peer mechanism for communication. This mechanism would be supportive infrastructure not just for communication, but also for the ledger. The end result was several things, among them:
- Improved security of the infrastructure
- Creation of a trustworthy foolproof system
- High levels of speed on the network
Stellar (XLM) and Ripple (XRP) on the other hand opted for a different mechanism altogether. Most of the features that Bitcoin adopted were for instance dropped. The key focus of for them was to give the platform speed above other features. The direction they took, however, would only manage to draw criticism from potential users.
Stellar’s Operation Mechanism
Since the key problem identified from the hard fork was a communication problem between the different elements in the infrastructure, Stellar adopted several means of solving that problem. The first and most important one was to get a means for the different node groups to communicate and then build up on the communication between clusters. With this system, the different nodes would only have to communicate with those they have trust with on the cluster.
After establishing the different trust clusters, a super-group of trusted nodes would then be created to take care of overall validation and communication needs. The result of that system would then be decentralization of communication. The non-performing nodes would not be allowed to do verification nor to belong to a cluster. Such a system would not only have speed but also authenticity.
With this system, Stellar is one of the systems that are almost completely impenetrable. It is thus not hard to see why IBM is banking on this platform. The near future also has no space for centralized systems when it comes to getting into a consensus. In a world where digital communication is fast and secure, decentralization will always take precedence.