XRP, Ripple

The rate of adoption of the digital ledger concept has grown exponentially.  Besides bitcoin, there are other networks built to expand usability of blockchains by adding features and addressing some of bitcoin’s limitations. The Stellar (XLM), released in 2014,  has seen massive success and adoption with  companies such as Delloite Co. employing it for some of their processes. The achievements of stellar within this firms speaks to the network’s capabilities in bringing efficiency to businesses.

At its launch, the main currency facilitating transactions on the platform was the stellar which later renamed to lumen (XLM). Other than being a medium for transactions, the coins also play a role in the protection of the network. By requiring a minimum balance of 0.5 units in a user’s account, the network limits the number of inactive participants in the platform ensuring all members contribute to the ecosystem’s economy. XLM also discourages overcrowding of the system through DoS attacks by requiring a small fee  for every transaction.

In conducting transactions between different jurisdictions, foreign exchange risk contributes considerably to high costs doing business. Stellar (XLM) was developed to facilitate transactions of this nature. It acts as a bridge between currency pairs that would otherwise be difficult to exchange due to low traffic provided liquidity exists between XLM and each of the currencies.

Stellar has applications for that can be tailored to meet unique  needs with considerable benefit. The ease with which it can be integrated into these businesses also makes its adoption more likely. The companies below are just a small illustration of the networks capabilities.

  1. Delloite

Delloite adopted use of the stellar network to manage smaller payments and it has seen the benefits. Transaction costs associated with these payments dropped by upto 40% with only 5 seconds required to process and validate the transactions. It is fairly simple for businesses to adopt and customize on stellar to meet their requirements. Integrating the network in to delloite’s ecosystem only took a month. In an increasingly competitive business environment, such benefits increase the potential customer base and profitability of the company.

2.Tempo Money

For a long time, cross border money transfers have been limited due to the high costs involved and the amount of time it has required to process them. Tempo Money transfer has been involved in the remittance industry facilitating transfers between European countries and the rest of the world. While it would cost between 4 and 150 euros depending on the amount transfered, the Stellar (XLM) has enabled Tempo reduce these cost significantly. It is now possible to complete upto 600,000  transfers at a cost of USD 0.01. The costs associated with payment for services and utilities such as health insurance and energy bills through money transfer agent have also been greatly reduced encouraging more to use the service.

  1. Parkway project

Mobile money has become life changing for many bringing more efficiency in transactions. It has facilitated movement of money directly between individuals and businesses. However, transfers have been unsupported for parties using different providers. The parkway project has employed the Stellar (XLM) to solve this problem by enabling mobile money transfers between the country’s 5 major telecommunication companies while keeping costs low.


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