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Stellar, Ripple, and the blockchain tech as fintech’s engine

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Stellar Ripple
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Cryptocurrencies like Stellar (XLM) and Ripple (XRP) might not be unfamiliar to many here now, but “Fintech” is a new word. It’s a contraction of “Financial technology.” The term describes new ways of doing old things. More specifically, it refers to a new generation of financial services that aim to bring those services to people who have traditionally been marginalized from the banking sector because of a lack of resources.

For instance, if you are an immigrant worker in, say, you and Western Europe need to send money to your family back in some country in Subsaharan Africa, you can’t use the bank system. Why? Because the chances are that neither you nor your family has a bank account, even a savings one.

Even if both parties did have a bank account it would still be inconvenient because the procedure is very bothersome, it takes several days, and it’s quite expensive (it’s usually a percentage of the money you are sending). So what’s the option? Fintech companies.

Fintech is finding ways to make the global financial services cheaper, faster, safer, and more efficient in such a way that people who couldn’t afford them in the past, can afford them now. Paypal is probably the most famous example.

So how can fintech firms afford to do the same job as banks, only better, at lower cost, at higher speeds and more securely? It’s all about technology. They’ve found the way to harness the power of the internet, mobile phones, and telecommunications technology and turn it into a financial advantage.

It sounds like an easy answer, but you should take into account the traditional financial system is probably the industry with the most inertia in the world.

It’s always been very conservative and slow in adopting new technologies. If we talk about settling international payments, banks still use the SWIFT system which came online in 1975, and it still has not updated its technology in any meaningful way.

But there’s a missing ingredient here. There’s another piece of technology that the fintech industry is beginning to discover and it’s quickly integrating it into its services and technology: the blockchain.

Stellar and Ripple – Two Best Examples of Bridges Between Fintech and Blockchain

Leading the way in this regard are two blockchain projects: Ripple and Stellar Lumens. They both have a native token (XRP and XLM, respectively) and they’re working hard with both fintech and traditional financial companies so that cryptocurrencies and blockchain technology eliminate all the friction that remains in both systems.

While both Ripple and Stellar were founded by the same person (Jed McCaleb), he dropped out of Ripple to found Stellar which is the organization he currently leads.

Ripple’s aim from the beginning was to create a platform and a series of software products that run over a blockchain and use the XRP cryptocurrency to mediate the settlement of payments across borders. They’ve been so focused on that goal that, for years, the possible case uses for XRP as a retail currency or as means of storage of wealth was completely neglected (that is changing).

Ripple has secured lots of interesting strategic partnerships with some of the world’s most important banks so that they join the cryptosphere at least as users and clients, if not as investors.

Stellar is a different animal. Unlike Ripple, it hasn’t always aimed to help the financial industry, but to be a third generation blockchain project in which decentralized apps and smart contracts can be deployed or issued by its users.

Then IBM decided to adopt Stellar Lumens as the platform of choice for all of the giant’s projects based on the blockchain. This changed the game for Stellar because IBM already has commercial relationships and partnerships with about 90% of the world’s banks, so it became an opportunity just too good to pass.

So now you know it. Fintech is taking over the world and cryptocurrencies are the engine it’s using to achieve it.

And why should this matter to you as an “average” crypto enthusiast? It’s quite simple. These two projects (there are more, such as Electroneum) are finding ways to make cryptocurrencies useful for everybody, even for people who can’t use a computer or don’t know they’re using digital assets indirectly.

That will end up creating demand for those assets which, in turn, will make them more valuable at the crypto exchanges. This will change the market. It’s currently driven by speculative pressure, but as assets such as Ripple’s XRP and Stellar’s XLM gain ground, they could transform it into a real market, driven by economic forces.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

HODLing Stellar Is A Good Plan For 2019

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HODLing
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HODLing, or holding on to a certain asset or assets has always been an extremely useful investment strategy, even before cryptocurrencies were even imagined. Now, with the market being more uncertain than ever, many are wondering what is the right thing to do with the coins in their possession.

Of course, things change depending on the coin in question, but today, we are going to talk about why it is a good idea to hold on to your Stellar (XLM) in 2019.

Why You Should Hodl Stellar (XLM)

The crypto market is rich with hundreds, and even thousands of different projects at this point, and separating valuable ones from those that are destined to slowly fade away can be tricky. However, even the biggest skeptics believe that Stellar is a coin that is here to stay.

XLM was first launched in 2014, and for a long time now, it has been among the top 10 cryptos by market cap. It is an open-source, decentralized protocol that allows users to send fiat currencies by using cryptocurrency as a method of transport. In a lot of ways, it is very similar to XRP. However, the biggest difference is that Stellar aims to offer its services to regular people, while XRP is more interested in working with banks and financial institutions.

Nevertheless, sending money, especially when it comes to cross-border…

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Altcoins

Reasons To Invest In Electroneum In 2019

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Electroneum
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2018 has been quite a rollercoaster for the crypto space. Coins went up and down more times than anyone could have guessed, not to mention two massive market crashes. However, in a few short weeks, the year will be over, and a new, positive period for the crypto world is expected to arrive.

While there are many predictions for 2019, today we are only interested in one thing — Electroneum (ETN). A lot of people quickly took notice of this coin, and many believe that it is among the coins of the future. Indeed, it has received a lot of attention, and many are interested in why that is, and why investing in it is a good idea. So, let’s take a look at a few reasons why you should invest in ETN in 2019.

1) It is fast

Speed and precision of any service have always been very important to people. This importance is even greater when making a profit depends on it. Electroneum developers were aware of this when they created it, and the coin is up to 5 times faster than Bitcoin. This means that ETN transactions can be confirmed much faster, which in turn reduces fees and waiting time.

Furthermore, there are also plans to create Electroneum Virtual Currency Exchange, which will allow the project to act as an exchange. However, the even…

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Bitcoin

SEC Postpones Bitcoin ETF Decision Once Again

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Bitcoin ETF
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The new announcement by the US SEC (Securities and Exchange Commission) states that the decision regarding the potential approval of several applications for a Bitcoin ETF (exchange-traded funds) is once again postponed. This time, the SEC declared that the decision will be made by February 27th, 2019.

The application requesting that VanExk SolidX BTC fund get s listed on Cboe BZx Exchange that was published on July 2nd needs to be given order by the commission within 180 days. Originally, the deadline for doing so was December 29th. However, the SEC decided to extend the period for another 60 days, effectively moving it to February 27th.

The SEC stated that designating a longer period for making a decision was found appropriate, as more time is needed in order to properly consider the rule change.

Cryptocurrencies need a sufficient monitoring mechanism, claims SEC chairman

Recent reports claim that the SEC received over 1,600 comments after requesting the public opinion regarding the ETF applications issue. In the past, the SEC rejected many such applications, some of which were even submitted by SolidX itself. In addition, they also rejected the applications submitted by Gemini, the exchange owned by Winklevoss twins. Brothers were attempting to gain ETF approval ever since 2013, although to no avail.

Other applications were also submitted by Direxion, ProShares, as well as GraniteShares. The SEC rejected them…

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