In the past, say 50 years, there has been little changes in the current payment system. Technical innovation is pacing forward, but none could be seen in these payment networks. Not only the speed hasn’t brought forward any improvements, but the fees are also rather going for a hike as recently Visa and MasterCard have confirmed their plans too. Ultimately, these fees are bear by the consumers.
But this is where decentralized blockchain networks come into the picture as the current status quo which is unchanging present an opportunity for the startups in this space.
Now, Jon Lister, the founder of BlockEQ is ready to capitalize on the lack of innovation in this space. Toronto-based BlockEQ is a year old platform that is planning to build a new global payment network leading to its acquisition by the largest cryptocurrency exchange of Canada Coinsquare for $14 million late last year.
Stellar for Transacting Digital Value
Build on the 8th largest cryptocurrency, Stellar network, the focus of the platform is offering a global, cost-efficient and frictionless transfer of value.
“Block EQ is what’s known as an ‘anchor’ on the Stellar network. Anchors essentially take deposits, whether they’re Bitcoin, Ethereum or other fiat currencies and issue a token that represents that deposit. Once these assets are tokenized, they can be traded on top of Stellar’s ledger. The settlement times are significantly faster than Ethereum [typically 2 or 3 seconds] and the fees are very stable at less than 1/10,000th of a penny,” explain Lister.
BlockEQ already has a Stellar wallet available on Apple which will further expand support to additional cryptocurrencies for trading and fiat currencies, eventually.
“So currently, Block EQ has a digital wallet that’s available on desktop or mobile,” said Lister, it’s available on the App Store and [Google Play], and those wallets allow any Stellar tokens to be sent, received and traded on top of Stellar’s decentralized exchange. We’ll soon be releasing a service that allows users to deposit their Bitcoin and convert it into Bitcoin tokens on the Stellar network, [and] we’ll support a wide range of cryptocurrencies which will allow them to be usable and tradable in a much faster and cheaper format.”
Lister further details that Stellar is good for “transacting digital value” and trading but it doesn’t mean everything should be built on top of one protocol rather different use cases have different protocols that suit their needs best.
“I don’t see a need to build like everything on top of Ethereum when the Stellar protocol can handle the concept of value being transferred and traded at a much faster and cheaper rate.”