Cryptocurrency has become an incredibly hot topic, and for good reason. Millionaires have been minted in the space time and time again. However, if you’re interested in trying your hand in the cryptocurrency space, you may want to strongly consider looking into Stellar Lumens (XLM). I’ve been digging around for alternatives to the big four, Bitcoin, Bitcoin Cash, Ether, and Ripple, and I have to say, Stellar has quickly become my top pick in the space. Ultimately, I found 3 competitive advantages that lead me to believe that the price of Stellar is headed up.
Competitive Advantage #1: Ultra-Fast Processing Times
The most important competitive advantage that the Stellar blockchain has over Bitcoin or even Litecoin or Dogecoin is the speed at which transactions take place. At the end of the day, speed of transactions is a key metric when it comes to a cryptocurrency’s ability to scale, as we’ve seen with Bitcoin as it became more popular.
When it comes to Bitcoin, it’s the AOL of the blockchain space. It was the first, and it is indeed the slowest. In fact, the Bitcoin blockchain takes a whopping 10 minutes and in times of high demand, hours to confirm that a transaction on the chain has processed. This is why many believe that bitcoin does have a roof, and it’s closer than we think. After all, if the blockchain can’t process at a rate that can keep up with demand, well, demand will taper off.
This is why cryptocurrencies like Litecoin (LTC) came into existence. In creating the cryptocurrency, the developers at Litecoin focused their energy on making the cryptocurrency fast. Ultimately, Litecoin developers wanted to build a system that could scale to become larger than the leader in the industry, Bitcoin. So, they built a system that processes transactions at a speed of 2 to 5 minutes. When compared to Bitcoin, that’s not too bad.
However, Stellar is proving that even Litecoin’s blockchain is only another form of dial up internet of the cryptocurrency world. In fact, Stellar has created a blockchain that processes transactions in just 2 to 5 seconds! That incredibly fast rate ensures that Stellar has the ability to scale and achieve its mission of becoming a global currency that helps to fight poverty through access to financial services. Ultimately, this will likely continue to support growth in the price of XLM ahead.
Competitive Advantage #2: Impressive Partnerships
Another advantage that I believe will make Stellar a key contender in the cryptocurrency space is the partnerships that the foundation is forming. In fact, one of the largest partnerships happened back in October.
In October of 2017, it was announced that the Stellar Foundation teamed up with IBM as well as various banks in order to provide cryptocurrency-related financial services to the South Pacific. The region including New Zealand, Australia, and several smaller nations, will soon have access to cross-border banking services, made available through this partnership. In a statement, Jesse Lund, IBM’s VP of Blockchain, recently had the following to offer:
“This is the next step in the evolution of blockchain technology. It’s live money moving around a network.”
Competitive Advantage #3: An Impressive Management Team
Finally, when digging into the management team at Stellar, I was thoroughly impressed. These are no beginners here. Jed McCaleb is a co-founder of the Stellar Development Foundation. This is the same guy that created the first bitcoin exchange, Mt. Gox as well as one of the world’s largest file-sharing networks of its time, eDonkey2000.
However, McCaleb isn’t the only big player here. Scott Fleckenstein, the Lead Developer at Couchsurfing, Lead Engineer and Chief Architect at OpenFeint before it was acquired by GREE, and Lead Engineer and co-founder of Get Satisfaction, is also a developer on the Stellar team.
Stellar also paid close attention to partnership builders. Bringing in Ella Quiang to head partnerships in china. Ella previously held a position at China Development Bank, structuring financing of infrastructure projects.
These are just a few of the impressive members on the Stellar team. I strongly recommend digging into others on the page linked to above.
As cryptocurrency becomes more and more ingrained in the financial system, clear winners in this digital currency market are starting to emerge. As a top 10 cryptocurrency by market cap, Stellar is already making its way to the top. However, it’s my belief that due to the competitive advantages mentioned above, it has a strong chance of outperforming others and climbing higher on the list.