In part 1, we explained quorum slices in the Stellar Consensus Protocol (SCP). In part 2, we will cover the federated voting process of SCP and recent developments of Stellar.
Federated Voting process
Nodes within the SCP reaches consensus with the federated voting process. It consist of 3 steps:
- Initial voting
To simplify the process, let’s assume Bob needs to vote for either statement A or B. Bob starts at an uncommitted state and votes for A. When he sees a quorum vote for A then he can accept A and hold a second vote to confirm that the first vote has succeeded.
In the case that Bob votes for B, he will be convinced and accept A if Bob’s v-blocking set of nodes has voted for A. A v-blocking set contains at least one node from each of Bob’s quorum slices. As a result A will be confirmed within Bob’s quorum.
IBM World Wire platform
IBM Blockchain last week unveiled the World Wire platform which will help settle cross border payments in near real-time using the Stellar protocol. Financial institutions can transact with any agreed stable coin, central bank digital currency or other digital asset as the bridge asset between any two fiat currencies.
At the moment, while Stellar Lumens are used as the crypto bridge asset, IBM is also looking to test Stronghold USD, a stablecoin that is running on Stellar blockchain, as an additional bridge. Compared to Ripple’s xRapid (only uses XRP as bridge assets), the World Wire platform allows financial institution to use stable coin, central bank digital currency or other digital asset as bridge asset between any two fiat currencies.
Stellar Decentralized Exchange – StellarX
Launched in July 2018, the StellarX allows users to trade Stellar native tokens as well as crypto and fiat tethered tokens with XLM.
All transactions are peer-to-peer on the platform with no middleman involved. There are no costs for transactions on StellarX, network fees will be refunded and Stellar’s automatic 1% APR inflation will also be returned to the users.
Lightning Network on Stellar
Stellar is also developing to bring Lightning payment channels on Stellar network to allow instant payment, neglitable fees and private transactions. Lightning allows two parties to perform instant transactions without paying transaction fee. Transactions within the channel will not involve the Stellar network until either parties decide to close the channel and broadcast it to the Stellar Network. For details about Lightning network please refer to Cryptoclassroom #3 Lightning Network.