Something that has never happened in 20 years has occurred in 2022. The ratio of the two most dominant currencies in the world is 1:1; the Euro and Dollar are equal. Since the world is spiraling with this piece of information, and as we slowly transition into decentralization- A lot worse could happen to the digitized versions of government-backed fiat currency!
If you are familiar with several versions of Bitcoin and Ethereum with Bitcoin Cash and Ethereum Classic, respectively. This pattern would likely reflect on the digital Euro and Dollar sooner or later. And how would that be dangerous?
We would have to get into the basics for that.
Mining enables the minting of Bitcoin with several computer nodes that classify and verify equations that aid in the process. If the nodes disagreed, it would automatically just split the network. And that’s how the lesser-known Ethereum Classic was born.
Likewise, having two versions of the dollar on two different networks would have two separate banks back up the same currency. Thus, Protocols like the Stellar network take pride in protecting digital assets such as currencies or even government bonds.
They base their golden rules on cooperation, not competition. Computers connected to the Stellar network take note of the ones that would agree to them at any point. All transactions are listed and are in alignment with each other.
But these agreements aren’t just made in thin air, they are tailored to the regulations that guide the network via cross-checking every 5 seconds. The bad apples are pushed aside in the process, and stability is maintained at its core by the Stellar Consensus Protocol (SCP) process.
The best part is? Unlike mining, this consensus mechanism barely uses electricity at a lower transaction fee.
Stellar is proudly the network that connects global banks, developers, and businesses to over 6.5 million individual accounts, and more than 2 billion operations since 2014 have been handled. Companies at different scales, from single-dev startups and large enterprises, have adopted Stellar to move money and penetrate new markets.
Stellar has always been cryptocurrency-proximate, but the project’s goal has always been to strengthen rather than replace the current financial system. It is a decentralized system perfect for exchanging any form of money transparently and efficiently, unlike, for instance, the Bitcoin network, which was designed for trading just Bitcoins.
Stellar has no owner; instead, the public owns it. Millions of transactions are handled daily by the software, which operates over an open, decentralized network. While Stellar uses blockchain to keep the network in sync, much like Bitcoin and Ethereum, the end-user experience is more similar to cash since Stellar is significantly quicker, less expensive, and more energy-efficient than standard blockchain-based systems.
Simply said, Stellar makes it possible for regular people to transmit money anywhere swiftly and inexpensively in the future. The Stellar Development Foundation argues that free global wealth flow is essential if we are to realize the potential of the contemporary digital economy fully.
That is what Stellar intends to achieve and what it will do.