The Axelar Foundation and Stellar Development Foundation co-authored an article examining how blockchain interoperability is essential for retail payments to achieve the seamlessness of traditional payment systems. The piece highlights Stellar's payment innovations and argues for decentralized interoperability solutions like Axelar over custodial bridges.
This collaborative article from the Axelar Foundation and Stellar Development Foundation explores the critical role of interoperability in enabling blockchain-based retail payments. It draws parallels between traditional retail payment infrastructure (payment instruments, networks, and processors) and blockchain systems, demonstrating how Stellar's design—including anchors, asset issuance, and integrated DEX—mirrors traditional payment efficiency. The article emphasizes that while blockchain offers speed and cost advantages, fragmentation across networks (Bitcoin, Ethereum, Stellar, etc.) creates barriers to seamless transactions. It critiques custodial bridges for security vulnerabilities (citing the Axie Infinity Ronin Bridge hack and Bybit exchange breach) and vendor lock-in risks, advocating instead for decentralized interoperability protocols like Axelar that distribute control across independent node networks, ensure non-custodial design, and provide transparent, auditable transactions. The conclusion positions interoperability as the key to unlocking blockchain's potential for mainstream retail payments.