The Stellar Consensus Protocol (SCP) is a decentralized consensus algorithm developed by Dr. David Mazières at Stanford that uses a Federated Byzantine Agreement model to achieve transaction finality in 3-5 seconds with minimal energy consumption, making it significantly more sustainable than Proof of Work (PoW) and Proof of Stake (PoS) mechanisms; this efficiency enables applications like SHX (Stronghold) to offer transaction fees of only 0.00002 XLM compared to Ethereum's 69 Gwei gas fees, representing a 345% cost advantage for payment-focused use cases.
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SHX The Stellar Powerhouse is Here to STAY! | VELO Ecosystem!Added:
What is up, guys? We're back with another episode. If you've been living under a rock, uh, you might not know this, but Stronghold has reposted this again. DTCC plans to bring tokenized securities onto the Stellar network.
We'll be covering this tomorrow in the XLM coverage to understand uh the magnitude of this, but it impacts Stronghold as well because Stronghold is the cornerstone of the stellar infrastructure.
uh and that has been said by Jed McCalb himself. So this is totally relevant to Stronghold. Anyways, we we'll be covering that in the next coverage.
Meanwhile, if you look at what is happening with Stronghold, the latest adoption follows clarity, guys.
Infrastructure follows adoption. Uh but we all want infrastructure to happen without clarity. We want to basically skip steps. uh this is now how everything works around here. But uh the first step is uh in its culmination in my opinion. Japan's fintech regulatory update May 2026. This month's key regulatory developments. Let's check this out. The Financial Services Agency issues new cyber security guidance for crypto asset exchange operators.
Obviously, this is really great for Stronghold, even XDC and XRP because they are really tight when it comes to Japan. They're working there, consolidating their presence. The Bank of Japan releases Q1 2026 CBDC pilot progress report. Key milestones achieved ahead of schedule. Discussions on amendments to the payment services act advance. Focus on blockchain payment infrastructure. Meanwhile, the FATF review, Japan's AML CFT compliance rating ma maintains top tier status, guys. Uh so from this we understand that that Japan's regulatory environment is continuing to mature and this will pave the way for stronghold Japan to succeed further. If we look at the global fintech update in the United States, stable coins now have a federal framework. In the European Union, nine major banks launching a euro stable coin. In Japan, crypto tech dropping from 55% to 20%. This is uh why we're seeing that Japan may be a digital asset hub in the future because uh of it of of what it is doing. The policies are really great when it comes to digital assets in crypto and stronghold is really rational uh when it comes to uh going there. Uh if you look at the global landscape, $33 trillion in stable coin transactions in 2025. The shift is happening everywhere.
Yeah. Now look at this. Uh this is Tami Camp. Why SHX is so low cost and efficient that it feels unreal. We're going to be looking at this video in a moment. Tam has some really great stuff for us. But let's first skim through what is being said over here. Yeah. Uh here at Stronghold, we've been asking tough questions that keep crypto boys awake at night. Besides, when moon and when Lambo, these are the questions that uh basically is has to be ignored in my opinion because the this industry cannot mature without questions like these because we should be happy if an infrastructure is developing. if uh you're getting something useful in the real world instead of uh the conventional uh stuff that we conventional outdated stuff that are that we are used to.
Questions like can we expand economic opportunity without accelerating climate catastrophe? Can we have our crypto cake and eat it too? So the energy elephant in the room. Let us acknowledge what makes blockchain both amazing and energyintensive.
These decentralized networks are like having thousands of backup servers running simultaneously. So the security is on steroids. But all those participants are also slurping electricity like it is free Red Bull at a developer conference. I mean this is great. the level of energy that it requires is huge. You can take the example of the OG Bitcoin uh the proof of work mechanism miners race to solve complex mathematical puzzles but you all know that how uh energy uh draining it is. Then there's Ethereum's proof of stake uh approach. Sure. They made the merge in 2022, transitioning to a system supposedly using 99.95% less energy. Progress that is absolutely perfect. Not quite. Those gas fees are still high. And we've all been through the uh Ethereum uh infrastructure, especially the DeFi, the unis swaps. You know what what we're talking about. Then we've got the plot twist. We found a better way. When launching SHX in 2018, we weren't just looking for any blockchain. We needed the Goldilocks solution. Not too energy hungry, not too expensive, but just right. And here we enter the Stellar consensus protocol.
And this is why Stellar is really integral to what uh SHX is doing. And this surge and good news is really great for the entire Stellar ecosystem, guys.
Now, let's hear from Tammy herself.
>> Welcome back to Stronghold 101. We're going to tell you why we chose to build SHX on the Stellar Consensus Protocol or SCP and why SHX is better for the environment. We first issued SHX in 2018 as a loyalty token and discount program to support early adopters for our services. In other words, we built SHX for realworld use and value with the intention to expand. To pull it off, we knew that SHX had to be created as a fully functional and sustainable payment solution.
In our last episode, we looked at the environmental impact of proof of work and proof of stake. Both of these protocols require massive amounts of computing power and consume a large portion of our global energy. We knew we needed to be more sustainable. So, we chose to build SHX on the Stellar network, an open-sourced public blockchain designed to connect people to payment services and financial institutions and create equitable access to the global financial system. The seller consensus protocol is based on the work of Dr. David Nazerz, the chief scientist at Stellar and the head of Stanford's secure computer systems group. It's the first mathematically provable consensus algorithm that uses a federated Byzantine agreement model to reach an agreement in a decentralized system. And it doesn't rely on a closed system to record transactions or reach consensus. SCP is also built to tolerate nonrational actors in an environment with low computing power. It does this with four key factors. Decentralized control, low latency, flexible trust, and asmtoic security. With lessons learned from Bitcoin's proof of work, Stellar created a faster, more efficient decentralized payment infrastructure with global interoperability and a goal to reach net zero carbon emissions by 2030.
Stellar's SCP operates by proof of agreement, a series of messages about transactions that are sent back and forth across different nodes. A node is any device connected to the blockchain network that runs the protocol software.
This allows transactions per unit to be completed in a matter of 3 to 5 seconds and you can issue assets with a few lines of code.
In other words, Stellar's SCP is a vertically focused blockchain focused on payments and financial services. This makes issuing and completing transactions with SHX as efficient as paying with a credit card. Unlike Bitcoin's proof of work, which consumes a significant amount of computational power and energy, or Ethereum's proof of stake, a horizontal platform that while popular for its smart contract capabilities, is less secure than a blockchain like Stellar for payments.
SHX proof of agreement is a low energy way to achieve the same result. Also, Stellar's transaction fees are fractions of a penny, only 20,000 of a cent to be exact, compared to Ethereum's gas fees, which are currently 69. That's a 345% difference.
>> 345% difference is a lot, guys. I mean, this is huge. And Stellar being uh SHX being built on top of Stellar gives it a huge advantage in the micro finance industry that it wants to uh basically overtake control and in my opinion SHX will do much more than that that as uh the banker crypto banker has said that it might eventually become a bank and look at this uh cryptobanker has yet again uh proclaimed claimed and stated that this will be up there as one of the greatest ever calls on crypto Twitter.
Look at this. A lot of rumors and speculation kicking around crypto Twitter recently, but what if I told you that crypto payments will include SHX.
SHX is ISO 20022 compliant runs on XLM.
Uh it is associated with XRP works on USA Fed now ledgers over 100K plus customers rewards program merchant promotions feature all live. This is what we're talking about. Meanwhile, look at this with the uh stellar news recently. SHX has made its move as well. So this really great.
Meanwhile, talking about another project on stellar, Whoo has been uh up up to the mark as well when it comes to development. Recently, they announced the white paper blueprint what they want to achieve. So this really great. We're seeing progress in the stellar ecosystem like the old the good old days. Bridging trade and web 3 with real world settlement infrastructure. Well builds actual utility where it matters most.
Now you can access Wow on change. Now look at this guys. From settlement flows to digital asset access. Well is built around movement networks and real use.
Meanwhile if we talk about payi it is not a concept when it comes to it is enabling value between onchain and the real world. Guys, there was an AMA uh recently between Well and Astronova. I wanted to share this with you guys. Uh check this out. And uh this is one of its kind. Willow does not do much of them, but recently they have accelerated their uh uh communication.
So um for an introduction um I think all of you are very familiar with fellow already but um for those who are new to fellow let me give you like a quick introduction of like what fellow is. Um so you know like sending money between like countries today is very slow and very expensive and if you have ever tried to like move money from one country to another um you know what I mean right? So it can take days and the fees are are rough and fellow um is positioned to fix that. We move money across border fast and we do it cheaply using crypto under the hood. Um the way that we do it has two parts. The first part is the legal side. We work with like licensed local partners um mainly through a company called Net through um across Southeast Asia. So they are the one who are actually allowed to handle real cash in each country mainly in Southeast Asia and is in the proper license way. And the second part is on the crypto side. We use crypto to do the actual currency swap which is the bit that makes it fast and cheap. Right? So this is like the simplest way to think about it right because most crypto companies are fast but they don't have the license and they don't really touch the real money. And uh well on the on the other hand most banks have license but they are slow and they're expensive.
So fellow is just right in the middle.
We have both side covered. And there is like orbit plus which is like a flagship product. Uh is an OS on Android app. You can check out on on your app store. Uh you can add money you can send crypto.
You can cash out um within OPI plus. So what we're trying to do is we want to incorporate more features. We want to partner with awesome partners in the ecosystem like Astronov to enrich our ecosystem, right? And um yeah and that's pretty much about it. So Fiber uh I know um can you also do a very brief like introduction of what Astronova is and yeah >> thank you so much Eugene. Uh hello everyone. Uh really excited to be here.
Uh I'm Vo. I head up business development and partnership at ASU. So in short, you know, basically my job is making sure we are bringing up the right people into the ecosystem and building relationships that you know move the needle. So whether that's uh I would say IP that's clear or you know platforms like super happy to be on this page today. Thank you so much for this opportunity.
Uh yeah, Astroa is an AI powered v3 entertainment ecosystem.
Uh but honestly, you know, when people hear that, they think it's just another gaming project and that's not really what we are. Uh we are more of an entertaining infrastructure play. Okay.
So we've got the whole suits of products live live right now. Uh there is black bus which is our community and loyalty layer. Uh we have over 250k to 300k users already on that. So that is really massive for us. Uh we have got no tools which is a web comic series app available on app store as well as play store. Uh we have done couple of IP collabs with partners like uh Shiva featuring them into those comic books.
Then there's Davy and Fights Club uh Telegram PVP game and couple more you know a couple more uh products will be coming into our ecosystem in the coming road map. So uh which is I would say literally a no code builder and what makes us different uh it's the conversion okay I would say of the AI entertainment and uh real token utility all in one ecosystem. Oh, >> so folks, what do you think about SHX and WO and uh the entire stellar ecosystem? I would really like your opinions. It is has been it recently has been on fire. We'll be covering XLM uh tomorrow as well to understand the impact of these moves recently. So stay tuned to that as well. So uh until next time, stay blessed.
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