The Stellar Remittance Platform Development is a blockchain-backed technology on distributed ledger. It allows transaction of cryptocurrencies and other modes of currencies. Each and every transaction that crosses stellar blockchain is included in a shared, and distributed public ledger, which can be accessed by anyone. It facilitates smooth and cheap transactions. It acts as a global exchange network that can host massive transactions between crypto and fiat currencies. Its native token XML is called Lumen, and can be used to pay transaction fees and maintain accounts on the stellar network.
Remittance payments on the Stellar Blockchain - The Workflow
In a traditional system, the workflow of remittance goes like this -
- Collect
- Deposit
- Settle
But in the Remittance payment platform supported by Stellar Blockchain, the process is a far cry from the traditional route. The workflow of the payment gateway goes like this -
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Collect - Assume a money transfer company in one country collects the funds (1000 USD) to be transferred from the customer. The Stellar Blockchain will then convert it into an equivalent amount of digital fiat tokens or XLM Lumens.
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Convert - In this step of the transfer process, the Stellar Distributed Exchange (SDEX) will trade the 1000 USD tokens of the sent amount to 4090 BRL (Brazilian currency), the currency of the receiver. This trading process is quite similar to trading crypto tokens on an exchange, and this trade takes place on the Stellar Exchange. The process of the fiat tokens being converted back into currency is via a path payment operation.
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Deposit - Once the trade is completed, the receiver or beneficiary will find the transacted amount in their respective accounts. This transferred amount can be deposited to the recipient’s wallet, bank account, or another local trail. The entire process is carried out seamlessly, with minimal costs being incurred.
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