The new payment channel works differently from the traditional transactions on the Stellar network that involves publishing transaction details and before the transfer of funds take place, the consensus will have to be confirmed. Starlight will lock transaction funds in a secure channel where payments do not require the network and only settlement balances are revealed at the conclusion.
Zero Fee Transactions
Starlight demo (a bidirectional payment channel on the Stellar (XLM) channel similar to Bitcoin’s Lightning Network), was launched by Interstellar. The new channel will enable zero-fee transactions to be sent privately by users of the Stellar network, and will for now will only permit transactions of Lumens, which is the native digital asset on the Stellar blockchain.
Stellar (XLM) Price Today – XLM / USD
The announcement also revealed that a huge amount of time-consuming processes will be eliminated by Starlight, which includes sending information among the platform users to ensure the transaction’s legitimacy. The information integrates all signed Stellar transactions but henceforth, they won’t be published to the entire network until after the channel is closed by the transacting party.
After closing the channel, the “transaction settlement” will then be forwarded to the Stellar account balance of the respective party. The transaction will take a look at the back-and-forth payment’s history from the parties involved to secure the channel. In the official Medium Account, Interstellar stated that: “Only the final settlement balances are revealed to the network when the channel closes. All other activity in the channel remains private and known only to its participants.”
The Starlight team has said that although their channel may be very similar to Bitcoin’s Lightning Network, it goes a step further because the payment channel is secured through the support given by the system. The project supports a multi-hop payment that transcends from channel to channel and the team has revealed that it plans to develop the project further in order to enhance its compatibility with other payment-channel networks like Interledger and Lightning.
Initially, this product released by Interstellar will only support bilateral channels and comes with Starlight payment channel software that has a built-in wallet App. The team plans to improve the next versions so that all other tokens can be supported, trading on the Stellar network besides Lumens.
Users were advised by the team that they could face some issues with the released Demo products and therefore they are running it on the Stellar testnet in order to prevent users from losing their funds. Therefore, they advised users not to use Starlight with the mainnet but to stick to the testnet.
XLM/USD Price Medium-term Trend: Bearish
Last week, Stellar was bearish on the medium-term outlook. On 16th October, the pair broke the former supply zone of $0.23 upside. It headed to the supply zone of $0.26 but could not reach the target. A bearish inside bar candle was formed and the bears return the XLM price to the south towards demand zone of $0.23
XLM price will bounce and continue in its uptrend movement if the demand level of $0.23 holds. Stellar is below 10-day EMA and 50-day EMA, with the RSI period 14 above 20 levels with its signal lines pointing to the south indicating that a downtrend movement is possible.