How Swarm is Working Toward a More “Stellar” Blockchain
Swarm is excited to be working with Stellar to support our underlying blockchain technology. Stellar was co-founded by blockchain industry leader Jed McCaleb. There are several reasons it makes the most sense for us to use Stellar as the “blockchain backbone” for our unique token offerings. Here, we’ll share a few.
Stellar’s Compliance Protocol provides native support for AML/KYC compliance — an essential consideration. AML/KYC laws require that financial institutions know their payers and payees. While these laws vary depending on jurisdiction, Stellar covers almost any conceivable scenario.
Stellar also supports assets that can be traded and exchanged with any other. The Stellar distributed network can be used to track, hold, and transfer any type of asset, whether that be dollars, euros, bitcoin, stocks, gold, or other tokens of value. This is perfect for the mechanics of Swarm’s equity tokens, which can sometimes be complexly fractionalized and distributed.
The Stellar network acts as a decentralized distributed exchange, which is also a good match for Swarm’s approach to tokenization. This decentralized distributed exchange holds any type of asset that people have added to the network. Its ledger can store both user account balances and offers.
Two more reasons we chose Stellar: Scalability and UI. The Stellar consensus protocol allows for faster and cheaper transactions than has typically been available through blockchains. The protocol uses quorums, which are a set of nodes used to reach an agreement, which allows for quick processing of large transaction orders without the need for mining. Plus, the code underpinning Stellar’s blockchain and platform is open source, so we can modify the code to our needs. This helps Swarm increase development flexibility around what is already an attractive option pre-modification. Stellar’s Horizon API provides a simple interface for building new applications, including querying and sending requests to the network. Horizon allows developers to submit transactions to the network, check the status of accounts, and subscribe to event streams.
Our team is driven by the vision to build a self-sustaining ecosystem of real world investments on the blockchain, funded by cryptocurrency, governed and owned by the community, and powered by Swarm. With partners like Stellar, who reside on the leading edge of blockchain development technology, we look forward to continuing our ongoing march forward to tokenize the world.