Stellar Trials Starlight, an Instant Payment Channel

Stellar Trials Starlight, an Instant Payment Channel
October 30, 2018


The crypto market remains range bound with mild positive bias.  Notably, the weekend saw the settlement of Bitcoin futures at CME (Chicago Mercantile Exchange) go through smoothly without creating ripples in the cash market. This is a stark contrast from what has been happening for the past several months when crypto markets turn volatile and mostly bearish around futures settlement date. Specifically, Bitcoin’s volatility has dropped to an 18-month low.


Government level decisions

The Economic Development and Trade Ministry of Ukraine has proposed a “state policy” for the regulation and licensing of crypto-related activities.  The Ministry has reportedly issued an official statement stating that its goal is to “create coherent circumstances for performing activities in the field of digital assets and cryptocurrencies,” and to herald “adoption of the concept of a state policy” for crypto.

To this extent, it has suggested setting up legal definitions for relevant terms, which include “virtual currency” (“cryptocurrency,”) “virtual assets,” initial coin (or token) offerings (icos or itos), cryptocurrency mining, “smart contracts,” and “tokens.”

The idea is anticipated to be implemented in two phases and will be completed in 2021. The document defined that the regulation aims to build a “free and transparent” crypto asset marketplace, drafting rules for storing, spending, and trading crypto, digital tokens, and smart contracts at a government, institution, and individual level.

Although Ukraine has not previously regulated crypto, the initial signs the country was on course to licensing surfaced in mid-May, when a representative of the Parliament, Alexei Mushak, published a copy of an evident draft regulation document for crypto in his Facebook page.

The Shenzhen International Arbitration Court (SCIA) recently confirmed that cryptocurrencies, in particular, Bitcoin and some of its hard forks, are legal assets and Chinese citizens have the right to hold and transmit them. The SCIA recently circulated a report about a contractual conflict over WeChat and explained the legal procedures for a case in which an individual supervised crypto assets worth nearly $500,000 on behalf of another individual. The manager then denied returning these cryptocurrencies after the client had dealt with a third party. The defendant argued in this case that the entire agreement between the three parties was invalid since Bitcoin, ICOs and other cryptocurrencies were not recognized as currencies under Chinese law. The arbitrator challenged this argument and decided instead that ownership of these assets as property is not itself unlawful, so it is not illegal to include the transfer of crypto assets as a mandatory stipulation in business agreements.


Private sector initiatives

Archer Daniels Midland Company, Bunge, Cargill, and Louis Dreyfus have partnered to use technologies such as Blockchain and AI to bring global grain trading into the digital era. The four largest agribusiness groups are seeking ways to homogenize and digitize global agribusiness transactions “for the benefit of the industry as a whole.” The companies initial plan to concentrate on robotizing grain and oilseed post-trade processes, which are presently mostly manual and a costly part of the supply chain. The future goal is to computerize other labor-intensive paper-based processes that include contracts, invoices, and payments. One of the unique problems companies are attempting to iron out is the 275 million e-mails transmitted each year by commodity traders to deal with only 11,000-grain shipments by sea. Overall, the four companies are focused on the new tech-push to introduce shorter document handling times, improved supply chain visibility and clarity, and greater overall competence.

Stellar’s Interstellar has disclosed a trial of starlight, a unique bidirectional payment channel running on the Stellar network. It is perceived to be similar to Bitcoin’s own lightning network regarding the service it offers.

The channel will allow network users to send transactions that do not include fees. They will be ready to try this privately in real time. This will only be the use of Lumens–Stellar’s native token in the proceedings. The significant advantage of Starlight is that the time-consuming processes no longer represent a burden. The final balances are displayed to the network as soon as the channel is closed. With regard to the other activities within the channel, this will remain private and will be known only to its participants.

The team of the Japanese technology group, Sony Corporation, has introduced an unnamed cryptocurrency wallet on the market. The new digital memory uses IC smart card technology to keep in touch with the Bitcoin network or other altcoins. Developers believe the central convenience is that it is not necessary to connect it using the USB port. Security is offered by a tamper-proof high-security unit in the IC card for keeping a private key. Please note that the crypto wallet can not only take in currencies but can also carry out other functions. Sony’s media release states: “This IC card-type cryptocurrency hardware wallet technology not only manages the private keys used for cryptocurrency transactions but also manages private keys used for other purposes, such as those for permitting the use of personal information using blockchain technology. It is an infrastructure technology with multiple possible applications.”

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.



Janine is our editor for related stock market news. Andrew and Janine will be focusing on providing the latest trends and where the next hit could be

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