Stellar the blockchain-based startup backed by payment powerhouse Stripe and owned by Jed McCaleb has announced the launch of a new financial solution platform called Lightyear which aims to solve global, cross regional payment and currency exchange challenges especially in developing nations.
According to an article by Fortune Tech, the new company would serve to transform the process of moving money around for business in developing countries, which lack access to secure and affordable transfer network. The platform will rely on Stellar’s open source blockchain software described by Stellar as follows;
“By using Stellar ’s open protocol to provide interoperability between financial institutions and different payment networks, Lightyear.io will revolutionize cross currency and cross asset payments, making them faster, more efficient, and less costly. With Stellar ’s open financial protocol, transactions are settled in almost real-time (3-5 seconds), for fractions of a cent, in a safe and secure network.”
Lightyear – which is one of McCaleb’s creations like Mt Gox and Ripple before it, has been operating in stealth mode for some months and would now serve as the commercial arm of Stellar to provide solutions for Stellars’ already established global network framework and partnerships.
The collaboration with Stripe as explained by McCaleb to Fortune Tech will help fast track sign up of merchant customers in the developing markets and accelerate blockchain adoption in these countries.
While the creation of Lightyear will allow Stellar to keep its focus targeted at its primary mission of improving the open source project that keeps the system running, it would also serve as a boost for Lumens, the digital currency associated to Stellar. Currently Lumens is on the rise in the cryptocurrency market with a market cap of about $36 million and sixth most trending cryptocurrency according to Worldcoinindex.com at the time of this post.
Value Proposition For Nigeria
Lightyear offers great opportunity for us here in Nigeria as explained by McCaleb in another interview with Bitcoin Magazine;
“While payments work OK in the U.S. and Europe, there is a lot more friction in places like Nigeria where more than half the people don’t have bank accounts and have to pay outrageous fees for moving their money around. It just makes sense to want start in places like that.”
The solution offered by Lightyear will eliminate the bottlenecks created by banks in the flow of money while maintaining integrity of transactions without tampering with regulations or compliance since everything is easily monitored on the blockchain.
I have been in the Cryptocurrency ecosystem for about three years. My passion for this niche of financial tech space inspires me to share with you all I can in the world of Cryptocurrency, Blockchain and financial technology.