How Stellar changes Fiat-to-Crypto on-ramps!

Introduction

In our previous article, we talked about the finality of the Stellar blockchain, and how it opens up the possibilities to create a standardized and unified blockchain experience. One of these innovations, called ramps, describes a way for issuers of stablecoins to implement their on- and off-ramp in a standardized manner. In this article, we will take a look at the importance of anchors in crypto, and how innovations like Ramps create healthy ecosystems for apps like Beans app to thrive!

The importance of anchors

Legacy blockchains have been around for almost 13 years, and slowly but surely their age is starting to show. With the slow finality, slow transaction speed, and high fees of Bitcoin and Ethereum it is difficult to create fast and seamless integrations into the world of traditional finance. The result is that these legacy blockchains are struggling with anchor integrations, which is arguably the most important bridge between Defi and Cefi.

The purpose of anchors is to on- and off-ramp fiat money from and to the traditional financial system. Without these anchors, you wouldn’t be able to bridge your real-world money to the digital world. It is the first place any investor will start their cryptocurrency journey, and it's the one and only reason that cryptos hold any value. Anchors are the gateway to our ability to do transactions and exchange value.

That is why anchors have such an important role in the world of blockchain, and why having bad integrations can withhold people from entering the ecosystem and the benefits. Blockchain can have an amazing and positive impact on people’s lives, as we are trying to prove with the Beans app, and having good anchors to the real world is important. Luckily new generations of blockchains are bridging the gap between fiat and crypto, focussing completely on this crypto-to-fiat experience!

A better user experience

The Stellar network is one of the few blockchains that chose to do things differently. They are going by their own rules, carrying a vision toward a seamless integration with traditional finance. The beauty of having a network focused on fiat is that you can create a user experience that is a replica of traditional finance. As the Stellar chain and protocol are optimized for fiat-to-crypto, anchors can use these optimizations to create an experience not found in any other blockchain!

One of the ways that Stellar is optimizing its blockchain for fiat is with its Ramps integration. The integration describes a standardized way for anchors and wallets to interact on behalf of users. This improves user experience by allowing wallets and other clients to interact with anchors directly without the user needing to leave the wallet to go to the anchor’s site. The speed and integration that Stellar and Ramps provide make for an almost seamless integration between dApps and the blockchain, creating a modular and peer-2-peer ecosystem.

See it like an improved way of interacting with an API. On a legacy blockchain every anchor runs its own API, and every dApp has to integrate that API in a slow and cumbersome manner to provide a sub-optimal user experience.

In contrast, Ramps allows anchors and dApps to build 1 implementation. This makes integration easier, modular and faster, and provides a user experience not found in any legacy blockchain dApp!

Another advantage of having Ramps is that dApps like Beans do not have to create on- and off-ramps themselves; They can rely on 3rd parties to meet the legal requirements in their active zones. This way Stellar is creating a modular legal ecosystem as well, and you don’t have to worry about the legal part of where your app is active!

How do we use this in Beans?

DApps like Beans can use ramps to implement anchors in a lot of different regions and countries, whilst simultaneously providing an amazing user experience. Users don’t have to leave the app to deposit or withdraw money and can be sure that their fiat is deposited in seconds. We don’t even have to worry about the legal implications that our anchors are active in, giving us the chance to focus completely on building an amazing app!

As a user, you will experience a streamlined experience with fast transaction times. Beans is aiming for an experience so streamlined and simple, that you won’t notice you are interacting with the blockchain. The Stellar ledger and its ramps integration have been one of the main pillars of why Beans has been able to achieve this, and that is what makes building on Stellar such a nice experience!

In conclusion

Beans has ramps integrated and already has 3+ anchors connected to its interface, solving the problem of slow and inconvenient user experiences and bridging fiat to the blockchain. Using ramps to create and interact with anchors creates a super easy user experience for everybody that interacts with, and leaves legacy blockchains far behind in the fiat-to-crypto department. A lack of standardization in legacy blockchains makes for a bad user experience, and inevitably stops mass adoption… And that’s why we are building on Stellar!