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Feasibility of Stellar as a Blockchain-Based Micropayment System

  • Nida KhanEmail author
  • Tabrez Ahmad
  • Radu State
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 11911)

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.

Keywords

Blockchain Micropayments Stellar Data analysis Cybercrime 

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.University of LuxembourgLuxembourgLuxembourg
  2. 2.ArcelorMittalLuxembourgLuxembourg

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