Altcoinbuzz said today forget XRP for an altcoin. According to him, Stellar is a very interesting alternative to XRP. Stellar has experienced a surprising uptick, becoming a major player in the current Ripple-focused crypto market craze.
Altcoin XLM replacing XRP?
The price of altcoin XLM has skyrocketed since July 18. Accordingly, it increased significantly by 68.8% last week and 22.1% in the last 24 hours. Now let’s understand why Stellar can be a good alternative to XRP. This increase allowed Stellar to dominate the top 100 cryptocurrencies list, highlighting its strong performance in the market. This positive rise is due to the increasing adoption of the Stellar payment protocol, especially in Africa and LATAM, where the USDC stablecoin on the altcoin Stellar network is gaining popularity as a payment method.
.@Bitso, a Latin American crypto company, has integrated @StellarOrg's Anchor Network to allow companies around the world to make payments to Argentina, Colombia and Mexico using USDC.@andresengler reports https://t.co/LkP81WQTb3
— CoinDesk (@CoinDesk) July 19, 2023
The US dollar is the #1 choice for international payments, the Euro for Europe, Bitcoin for crypto payments, and the altcoin Ethereum for everything in the decentralized application space. In summary, there are numerous financial systems, each with pros and cons.
Stellar represents an open source network that enables them to work together
More specifically, altcoin Stellar makes it possible to create a digital representation of anything that can be considered money, from fiat currencies to cryptocurrencies. Suppose a person was born and raised in a poor country called Country A, but now works in the United States. However, he still has family in his hometown. He also helps them by sending money. If country A citizens are allowed to have US dollar bank accounts, that would be great.
However, in many cases this is not possible. Altcoin Stellar makes it possible for another organization, say Company A, to step in and create dollar tokens. Thus, since it is not possible to send a wire transfer from the USA to Country A, Person A can transfer value to his family quickly and at low cost via Company A tokens. Person A’s family can store and spend the tokens. It can be exchanged with the currency of country A.
350 million people in Africa don't have access to bank accounts, and only 20% of families have formal bank accounts.@fonbnk1 provides a real-world solution to this problem by turning 8 billion active prepaid SIM cards globally into virtual debit cards with Stellar. (1/3)
— Stellar (@StellarOrg) July 18, 2023
At its core, think of altcoin Stellar as a system that tracks ownership. Just like Bitcoin has the Proof-of-Work consensus. Stellar is also powered by the SCP or Stellar Consensus Protocol, which is a less resource intensive and faster alternative with transactions published every 5 seconds.
More about Stellar
Altcoin Stellar also has a native token, lumen or XLM.
- Each account must always hold a few units.
- Altcoin XLM is used to cover transaction costs.
- Speculation size is also available.
- There are approximately 50 billion units in existence.
- About half of these are in circulation.
- The remaining units are held by the Stellar Development Foundation for purposes ranging from development to awareness raising.
- No additional units are created.
Stellar is a good alternative to do the same, given that banks around the world will adopt XRP to handle 24/7 international transfers more effectively. However, there is a big difference. Altcoin Ripple has an unlimited supply. This makes it much easier to issue as needed by banks. Just like they are currently doing with USD. However, Stellar has a maximum supply of 50 billion coins.
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