Big changes are coming to the world of cryptocurrency exchanges. While centralized services are still the go-to solution right now, more and more decentralized trading platforms are launching as we speak. Stellarport is the latest venture of this type to open its doors to the public. It is an interesting business model which creates a trustless and frictionless ecosystem for people looking to trade and exchange digital currencies. Do keep in mind this project is not part of the Stellar Foundation, but rather a separate company.
An Overview of Stellarport
It is always interesting to see how cryptocurrency exchanges evolve over time. Although most people have had to trust a third-party service provider with their information in order to buy Bitcoin, that may not be an issue for much longer. Slowly but surely, we are seeing an influx of new decentralized trading platforms which remove the need for placing trust in a third party altogether. Instead, users will trade in a peer-to-peer fashion, like it was supposed to be done in the first place.
Although a lot of these decentralized trading platforms do not offer much liquidity right now, things are gradually improving. With the new Stellarport service going live, it is evident things will continue to improve. This decentralized exchange has been available for some time, yet the official public release occurred only recently. As the name suggests, Stellar Lumens (XLM) is the base trading currency on this platform, but it’s possible we will see other currencies added in the future as well.
Stellarport is a decentralized exchange which aims to bring XLM to the masses. Anyone in the world can hold their own funds and trade them directly with other users. There are no custodians of funds to deal with, and the decentralized platform should be safe from hacking attempts or other criminal activity. Without intermediaries, any central point of failure is removed automatically. The website itself could be taken down, but that would not grant hackers access to any funds.
Moreover, it is worth pointing out that Stellarport is not like the other decentralized trading services we have seen in the past. That’s because there is only one “official” exchange which holds user listings. While that may seem like a centralized effort, it also makes it a lot less confusing for both novice and veteran XLM holders. There are different ways to access this trading platform, though, which means convenience is there for the taking. By combining a central trading system’s basic aspects with the benefits of decentralized technology, Stellarport is certainly a platform worth keeping an eye on moving forward.
Users will enjoy the best of both worlds when using the Stellarport platform. According to the parent company, it provides a mix of high volume, deep liquidity, cost-effectiveness, security, and reliability. It is very difficult to find all of these features in any other trading platform on the market right now. In particular, centralized exchanges are often lacking in the security and reliability department, mainly because they are a central point of failure by default.
Additionally, Stellarport offers a wallet service to its users, although it is not a mandatory solution. It is good to see the Stellar ecosystem grow, and it will be interesting to see how much attention the Stellarport platform attracts in the coming weeks and years. The way things look right now, most trading markets could use an injection of liquidity, but the platform has not been open to the public all that long. Establishing alternative trading markets for altcoins besides just Bitcoin or Ethereum pairs is always a worthwhile venture.