This new payment channel will work in a different fashion, in comparison to the traditional transactions, operating on the Stellar network. Currently the details are published and await consensus confirmation, prior to the funds being transferred. In terms of Starlight, it will facilitate locking in transaction funds within a secure channel. Payments will not require the network, revealing only the settled balances upon completion.
Instant Transactions – Zero Fees
Stellar’s Interstellar have unveiled a demo of Starlight, a new bidirectional payment channel operating on the Stellar network. It is said to be similar to Bitcoin’s own Lightning Network in terms of the purposes in which it serves. The channel will facilitate users of the network to send transactions that are of zero-fees. They will be able to do this in a private manner and in real-time. This will only be the case with the use of Lumens – Stellar’s native token in the transactions. The large boasting benefit of Starlight is that no longer will the days of time-consuming processes be a burden.
Furthermore, security of the Starlight is ensured by way of special information. This is exchanged between those involved with each payment. Details of the information include; signed Stellar transactions, of which do not get not published to the network. Only until one of the participants selects to bring closure to the channel. Once it is closed, the settled transactions send to each party’s Stellar account balance. This will take into account the back and forth channel’s history of payments.
Lastly, the final settled balances are revealed to the network once the channel is closed. In terms of the other activity within the channel, this will remain private and only be known to its participants.
Technical Review – 4-hour Chart
Despite the continued positive updates that surround the Stellar Foundation, XLM/USD remains in the direction of south. This is not being helped by the overall suppressed market that has been seen for quite some time now.
A big rejection was observed after XLM/USD bulls had attempted once again to break free from the triangular pattern formation. Price action has been contained within this since July. A firm attempt of a breakout has been attempted in September and on several occasions this month, October. As a result of the most recent rejection, on 23rd October, XLM/USD is running at its fifth consecutive session in the red.
In terms of support, eyes will be on $0.21 region, the 11 October low area. It is also in proximity to a generally choppy demand zone, demonstrated within August. Further south, support will be sought at the bottom of the mentioned pattern, just below the $0.20 mark. Lastly, a strong demand zone runs from $0.19-0.17 range. Should momentum swing back into the bulls’ favour, a firm break of the upper trend line will need to occur, around $0.25. This could see a fast run up back towards the $0.30 area and beyond.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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