Stellar Releases Starlight For Private Transactions
The Starlight product will eliminate the need of a third party in completing transactions on the Stellar network.
Stellar Enables Trading Between Two Users
The Stellar protocol is now permitting secure and private transaction through a new product dubbed Starlight. The development took effect last week after an announcement by Stellar.
The payment modes are meant to permit different parties to make transactions in a secure manner without deploying a third party. In other words, on the Stellar platform, two users can trade between each other without using the network. The new feature was enabled by Jeremy Rubin among other developers.
Normally, transactions that are charged usually entail revealing details to all parties. This is the only way transactions can be confirmed by the network. However, with Starlight, traders will be able to launch a private trading channel.
The channel deploys a lock up. When two users take part in a payment medium, they can trade without engaging the network. In the end, payment is in real-time and free. To secure the channel, the information is authenticated by the network. The validation process involves non-publishing of signed Stellar transactions before the initial payment medium is closed.
After the two parties conclude the trade, the payment channel shuts down. After it closes, payments are then remitted to the network and authenticated and then later added to the blockchain.
It is worth noting that the network has the capability of viewing the funds given to the payment channel. However, the history cannot be viewed apart from the settlement balances when the system shuts down. All the trading stays private to the end.
According to Interstellar, the Starlight transaction channel can be equated to bitcoin payment mediums that deploy the lightning network. In the future, the team seeks to also have different hop payments across all channels. As part of its development, Stellar wants to set up systems that are compatible with other channels.
Additionally, Stellar has given a glimpse of the Starlight wallet. The storage can support bilateral channels. It has the payment channel software alongside an inbuilt wallet application. The wallet is available in a trial version.
The wallet demo only permits lumens payments however, the Stellar team is set to upgrade to a version that can back any asset released by its network. At the moment, Starlight only links to the Stellar testnet. With this feature, bugs cannot lead to a loss of funds.