The Stellar platform has somewhat flown under the radar over the last few months, parallel with some other platforms during the extended bear market. Stellar offers some unique features that allow it to function as a decentralized exchange (DEX) itself with instant settlement and significant front-end application potential.
StellarX is one of the first applications to build on top of the Stellar platform’s unique architecture and works as a GUI for Stellar’s open marketplace.
What is StellarX?
StellarX is currently in Beta and will be officially launched to the public next summer. Where StellarX emerges from the crowd of DEXs and centralized exchanges is that it is not actually an exchange itself, rather it is a GUI. The Stellar platform acts as the back-end and consists of a universal order book with an open marketplace.
StellarX subsequently can facilitate genuinely peer-to-peer (P2P) exchange between users with immediate settlement and no fees. Essentially, Stellar allows for the seamless transfer of all kinds of assets from municipal bonds to Litecoin without rent-seeking intermediaries. This was one of the primary goals of DEXs but has been notoriously difficult to implement, especially when taking regulatory compliance into account.
Users of StellarX can trade directly from their wallet, redeem off-chain assets, and can even be paid by StellarX for becoming top market-makers. Users can access fast and free trading for all types of asset classes including crypto, fiat, bonds, commodities, and more. StellarX explicitly identifies (on their Medium) their reasons for choosing Stellar as the platform to build on primarily because:
- Stellar enables arbitrary extensions of the tether idea
- Stellar supports native ICOs
- Stellar has a built-in order book
- Stellar doesn’t rely on proof of work
Inherently a transaction system, Stellar is an untapped transaction and DEX system that has lacked a meaningful front-end interface to expose the underlying trading ecosystem.
According to StellarX, there are more than 2,500 tokens on Stellar, and that number continues to expand. The StellarX interface is a transparent client for tapping into the assets including off-chain tethers like Carbon Credits or Euros and native Stellar tokens like Mobius.
Stellar and ICOs
StellarX defines some key problems with the current trend of launching ICOs on Ethereum, mainly that projects aren’t properly utilizing the platform or understanding what they need for their projects. Based on a third-party load test, StellarX came to the conclusion that the Stellar platform is much better suited for digital asset issuance and volume transacting than Ethereum.
You can find their results on their Github. StellarX’s findings represent further empirical evidence of Ethereum’s inability to currently scale to meet dapp and exchange transaction capacity needs. Ethereum’s scalability concerns are well-established with some layer 2 innovations in the works, but the results nonetheless shed a valuable light on the current ICO craze.
StellarX may end up functioning as an essential gateway to the Stellar platform for many traders and users who were otherwise unaware of its potential.
StellarX is flying under the radar just like its underlying platform Stellar. However, as the broader cryptocurrency sector continues to evolve, developers and users alike will start adapting to the new landscape. Scalability limitations aside, different offerings with specific advantages over legacy platforms are emerging, and many of them offer refreshing upside and opportunity.
StellarX thinks Stellar is undervalued, and they are poised to illuminate the advantages of Stellar’s open marketplace.