Stellar Lumens Rolls out Memo-Less Payment Solution

Stellar Lumens, an open-source payment system, has rolled out a solution facilitating payment with the cryptocurrency. The solution dubbed as ‘SEP-29’ was approved by the Stellar community.

In a blog post, the company stated that the move solves the ‘I forgot my memo’ issue for receiving payments in the cryptocurrency.

The memo is a component which the Stellar network uses to support the accounts used by exchanges to store XLM. Such entities have a single account to handle all Stellar transactions. Thus, the memo IDs are necessary for the exchange to identify the user to credit with the transaction.    

However, this payment mechanism is ineffective as the users who lost their IDs are afraid of losing their money at the exchange. In addition, such entities face problems as regards locating the user funds. The SEP-29 proposal offers a better alternative as it allows exchanges:

“Using data entries, an exchange can mark their account as requiring memos with a single, simple operation. Wallets that upgrade to the latest Stellar SDK will then refuse to let users send memo-less payments to those addresses.”

For exchanges

The platforms should add only one data entry to their wallets using the key: config.memo_required and add the value 1. Stellar developers recommend that exchanges should visit the Stellar Laboratory page which will mark the required memo flag on the account.

In the blog post, Stellar asked exchanges to follow these steps:

  • Add a source account
  • Fetch the next sequence number for that account
  • Scroll to the bottom, and hit “Sign in Transaction Signer”
  • On the next page, sign with your secret key
  • Click “Submit to Post Transaction Endpoint.” That’s it!

For wallets

The user should upgrade his frontend and backend to the latest version of the Stellar SDK. New features will be enabled automatically in the updated version.

Over the last 24 hours, Stellar rose 2.64 percent to $1.02 billion. It ranks 16th with a market cap of $1.02 billion.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.