Stellar Lumens (XLM) and Ripple (XRP) currently leads the cryptocurrency rally. Prices of these coins are expected to increase over the next few months going into 2021.
Why Stellar Lumens (XLM) increased
Stellar was made to support digital representations of any currency, but it also has its own built-in token, called the lumen, created to fill a special role in the network. By design, Stellar requires that each account hold a small number of lumens at all times.
This lumen requirement is modest—a few is more than enough for most accounts. The full technical details are covered in Stellar’s docs, but, below, we explore some high-level concepts.
The “stellar” price action followed an announcement by the project’s developers that a new version of the Stellar public network protocol had been implemented by validators.
The Protocol 15 upgrade was voted into effect at 4:00 pm UTC on Nov. 23 and introduces two new features that aim to reduce the level of complexity presented to users of Stellar network-based apps and services.
Price action for Stellar Lumens has been relatively subdued over the past year until Nov. 21, when trading volume started to build. XLM has doubled in price over the last 48 hours and leads the top 100 coins by market cap in weekly gains, topping out at 125%. It is among a a handful of coins currently leading the altcoin pack in what could potentially be a long-awaited “alt season.”
Initially forked from Ripple Labs protocol by Jed McCaleb and launched in July 2014, Stellar seeks to lessen the cost of cross-border payments using blockchain. The project is particularly focused on serving unbanked or underbanked regions of the world where access to traditional financial services is either nonexistent or prohibitively costly.
Stellar’s Protocol 15 upgrade includes two new components designed to enhance user experience while retaining a defense against “farm attacks” and other methods in which bad actors may try to subvert the purpose of the network. A farm attack is where multiple accounts are created by an entity with the aim of harvesting the small amounts of funds sent to those accounts by service providers, which are required to activate the account.
“After the upgrade, developers can create simpler, better user experiences that abstract away the complexity of blockchain, and do it without losing any of the advantages of a fast, cheap, and permissionless public ledger.”Stellar Foundation
Why Ripple (XRP) increased
Most of the veteran XRP holders already knew that Bank of America was partnered with Ripple on improving exchanges between international currencies. Just days ago, Ripple has officially acknowledged Bank of America as a RippleNet Committee member.
The RippleNet Membership is a network of leading financial institutions that collectively and democratically govern and evolve RippleNet. These institutions work to standardize global cross border transactions.
The Membership enables RippleNet participants to adhere to the RippleNet Rulebook, a common framework that ensures operational consistency and legal clarity for every transaction.
Since the Committee is made up of leading financial institutions around the world, most of the big financial instutionals are expected to be acknowledged as a Committee member, these may include names like:
- J.P. Morgan Chase
- Morgan Stanley
- Wells Fargo
- Goldman Sachs
- Industrial & Commercial Bank of China
- Deutsche Bank
- Danske Bank
There is also a rumor that according to documents obtained by the Bank of England that they are expected to digitalize and move most of their business onto the Ripple technology platform.
The move to this technology platform is starting near the end of 2020 and is expected to finish the migration around 2025 (may be expedited because of COVID-19), according to people knowledgeable with the matter.
The ISO20022 push
Ripple is a part of ISO20022 which is an ISO standard for electronic data interchange between financial institutions. It describes a metadata repository containing descriptions of messages and business processes, and a maintenance process for the repository content.
With the launch of ISO20022, the FED and many others are looking to expand on this technology and our whole financial system is expected to be running on Ripple technology. Rumors suggest that FEDPayments run on Ripple technology.
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