The new launched exchange wallet platform is already disrupting development in the Stellar (XLM) ecosystem. Interstellar is a company that was born as a result of a merger between the 6th largest cryptocurrency, Stellar and Chain, a startup. Chain was acquired by Stellar in a cash transaction leading to the formation of an entirely new entity that claims to offer users fast secure crypto wallet that also works as a fully-fledged decentralized exchange.
Interstellar has been delighted to announced the release of a new product referred to as Starlight. It is “implementation of bidirectional payment channels on Stellar. The cryptocurrency industry is currently entertaining the idea of secure transactions directly between users without the interference of a third party. Starlight is a secure payment channel designed to allow private transactions between users. Similarly, the transactions are not only secure, they are also instant and settle without any transaction fees.
On the usual Stellar network, users broadcast the details of the transaction to everybody. At the same time, the user is required to part with a small fee to for the transaction to process. In addition, the transaction will not go through until the network reaches a consensus to confirm the legitimacy of the transaction.
However, Starlight eliminates a chunk of the above process where the information that is sent among the users of the platform, is used to ensure the legitimacy of the transaction. The information encompassed Stellar transactions that have been signed, however, they will not be published to the entire network until that time when a transacting party closes the channel. Following the closing of the channel, the “settlement transactions” forward to the respective party’s Stellar account the balance. Besides, the particular transactions use the history of payments to from the involving parties on the secure channel.
“Only the final settlement balances are revealed to the network when the channel closes. All other activity in the channel remains private and known only to its participants,” Interstellar explained on the official Medium account.
Starlight payments channel resembles Bitcoin payment channels that have been employed in the Lightening Network. However, the Interstellar team says that the Starlight project goes beyond the support given for the secure payment channel. The project also supports what is referred to as multi-hop payments that transcend from channel to channel. Moreover, the team intends to develop the project further increasing its compatibility with other payment-channel networks, for instance, the Lightning as well as Interledger.
Today’s product release is a demo release not a final product. Starlight will initially support bilateral channels. The project comes with a Starlight payment channel software coupled with a built-in wallet app. For now, only Stellar Lumens (XLM) tokens are support, although the team will improve the future versions to have support for all the tokens issued on the Stellar network.
The team advises the users that there could be bugs in the released demo product. It currently operates on Stellar testnet to ensure that users do not lose their funds. For this reason, you are advised to stick to the testnet and completely avoid using Starlight with the mainnet.
Stellar (XLM) Price Overview
Stellar is currently trade at $0.235, the trend is mainly sideways today. Since the week started Stellar has been correcting lower from the high at $0.259. XLM/USD is exchanging hands below the 100 SMA while other indicators like the RSI and the stochastic are sending negative signals to show that bears are gaining ground against the buyers.