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Feasibility of Stellar as a Blockchain-Based Micropayment System

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Smart Blockchain (SmartBlock 2019)

Part of the book series: Lecture Notes in Computer Science ((LNISA,volume 11911))

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Abstract

The advent of Bitcoin was heralded as an innovation in the global monetary system, that could bring down transaction fees by circumventing the need for third parties and conduct transactions in real time. The divisibility of a blockchain cryptocurrency to even fractions of a cent, caused microtransactions to become feasible to formerly non-existent denominations. These microtransactions have spurred the development of novel ways of monetizing online resources and hold the potential to aid in alleviation of poverty. The paper conducts a feasibility study on Stellar as a blockchain-based micropayment system. It highlights the limitations in Stellar that impedes its progress and utilizes a characterization model for micropayment systems to evaluate the efficacy of the Stellar platform. The paper conducts a comparison with the micropayment solutions from Bitcoin, Ethereum and PayPal. The paper analyzes a subset of transactions from the Stellar blockchain to aid in drawing a conclusion on the undertaken study and elaborates on the mitigation tools to enable fraud prevention in online monetary transactions.

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Author information

Authors and Affiliations

  1. University of Luxembourg, 29, Avenue JF Kennedy, 8358, Luxembourg, Luxembourg

    Nida Khan & Radu State

  2. ArcelorMittal, 24-26, Bd Avaranches, 1160, Luxembourg, Luxembourg

    Tabrez Ahmad

Authors
  1. Nida Khan
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  2. Tabrez Ahmad
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  3. Radu State
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Corresponding author

Correspondence to Nida Khan .

Editor information

Editors and Affiliations

  1. Columbia University, New York, NY, USA

    Meikang Qiu

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Khan, N., Ahmad, T., State, R. (2019). Feasibility of Stellar as a Blockchain-Based Micropayment System. In: Qiu, M. (eds) Smart Blockchain. SmartBlock 2019. Lecture Notes in Computer Science(), vol 11911. Springer, Cham. https://doi.org/10.1007/978-3-030-34083-4_6

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  • DOI: https://doi.org/10.1007/978-3-030-34083-4_6

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-34082-7

  • Online ISBN: 978-3-030-34083-4

  • eBook Packages: Computer ScienceComputer Science (R0)

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