What if we told you that there was a highly cost effective way for you to transfer money to your family member in another country? What if multi-currency payments to someone in another country were not only low cost, but as quick as 3-5 seconds? Well, we’d like to introduce you to Stellar, the distributed payments platform we are using to power the financial side of the InventoryClub marketplace.
You may be asking, “but what exactly is Stellar, and why are you using it?”
In this article you are going to learn about Stellar and gain an understanding of why we are using it for the InventoryClub ecosystem.
The What And How Of The Stellar Network
Stellar is a platform that connects banks, payments systems, and people to facilitate moving money across borders quickly, reliably, and at virtually no cost. Through this, the Stellar team is looking to completely shake up current systems by making monetary transactions quicker, cheaper and more reliable. The platform is a network based on blockchain technology, operating through decentralised servers in many locations that power a distributed ledger.
Reasons InventoryClub Is Using The Stellar Network
We had an important choice to make when creating the InventoryClub ecosystem. How do we service our marketplace operations without our users incurring huge transaction fees? After an exhaustive search for the perfect fit, we’ve chosen to use the Stellar network.
Stellar is a distributed payments platform, which facilitates low-cost payments between different currencies. It provides us with the ability to create tailored financial solutions for our target audience, which is why we feel the Stellar platform makes it possible for us to service the Commonwealth in an efficient and cost-effective way.
These six are the core reasons for our choice in using the Stellar network to build and facilitate our payment platform.
Token Creation And Management
Creating and managing our token using the Stellar platform came down to some very key advantages and benefits that the Stellar platform provides. We wanted to create a token that would have quick settlement (within seconds) when being sent and received. The Stellar platform also provides us with a built-in exchange with any other token, assets or currency in the network. Cheap transactions and the ability to unify how exchanges deal with our token are also important benefits that come with using the Stellar platform.
VNT is the currency we use to control the flow of funds in and out of the InventoryClub marketplace. The VNT token is built on the Stellar Network, benefiting from built-in token abilities, built-in decentralised exchange, enhanced security as well as cheaper and faster transactions. VNT can be used both on the proposals marketplace and the Commonwea marketplace as a form of customers purchasing products from merchant stores.
Cost Effective Payment Processing
A major component of the InventoryClub ecosystem operating as effectively and efficiently as possible came down to cost-of-use for the user. We needed a way to provide fast, highly secure payment processing in order to facilitate transactions in both the proposals marketplace as well as the e-commerce marketplace, Commwea.
With Stellar, transaction fees to the user literally amount to a fraction of a fraction of a penny. The Stellar platform allows us to process VNT payments and exchange the tokens for fiat currency in the same transaction cost-effectively.
Stellar allows us to facilitate and accept transactions and payments in multiple currencies. This capability is incredibly important as most countries within the Commonwealth have their own currencies. By being able to accept multi-currency transactions and payments, we are able to save you the time, cost and hassle of needing to convert currencies in order to transact in our marketplace.
When creating VNT tokens, we knew we wanted our tokens to be easily accessible on multiple exchanges. We felt it important to not limit the accessibility of our token, and Stellar’s built-in exchange offered a compelling solution. Stellar unifies how exchanges deal with our token. Essentially, if an exchange supports Stellar, than it is easily able to list all other tokens that have been issued on Stellar (i.e. our VNT token).
Built-In Decentralized Exchange
As we’ve mentioned earlier, the Stellar network is based on blockchain technology and has decentralized servers across the world. These decentralized servers are what power the distributed ledger, which provides transparency through the record keeping of every single transaction. This allows the support of issuing and moving assets. The Stellar network also acts as a decentralized exchange, allowing users to hold balances in user accounts and buy and sell assets.
Liquidity Through Existing Remittance Providers
While our VNT token does allow for buying and holding, it also serves as a method of remittance and money transfer. Using the Stellar platform we’ve designed the VNT token provide liquidity through existing remittance providers. This liquidity comes through the partnerships of the Stellar network. It includes financial institutions, payment aggregators, and technical specialists all committed to supporting a new and inclusive global infrastructure for payments.
To create trust, transparency and immutable transactions for the users of the InventoryClub marketplaces, we searched extensively for the best solutions. We found what we believe to be the best solution and have chosen to use the Stellar network. Stellar gives us the flexibility to service the Commonwealth through our marketplace operations without incurring huge transaction fees for our users.
It has also given us the ability to create and manage a diverse and powerful token, provide multi-currency payments and cost-effective payment processing, access to a built-in decentralized exchange, and provide liquidity through existing remittance providers. With Stellar, we’re confident in our ability to service the Commonwealth in an efficient and cost effective way.
Interested in learning more about how InventoryClub can help you take advantage of the tremendous financial opportunity that is happening right now in the Commonwealth? Check out our whitepaper.