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Stellar is a revolutionary, blockchain-based network working to bridge the gap between people and financial institutions around the world. By providing simple yet powerful payment solutions at accessible prices, it seeks to give everyone access to secure money transfers anywhere in the globe.
The Stellar Development Foundation is hard at work developing the amazing Stellar network. Its native currency, lumens (XLM), adds a sparkle to this already stellar system.
- Stellar is a decentralized, open-source payment network that allows for the fast and inexpensive transfer of any currency, including fiat currencies and cryptocurrencies.
- The Stellar ledger network operates using the Stellar Consensus Protocol, which utilizes a decentralized network of servers and the Federated Byzantine Agreement (FBA) algorithm to confirm transactions.
- Stellar’s native digital currency is called Lumens (XLM), which is used to facilitate transactions and pay transaction fees on the network.
- Stellar was founded in 2014 by Jed McCaleb and Joyce Kim, and is supported by the non-profit Stellar Development Foundation.
How does Stellar work?
Stellar is an immersive network connecting people, banks and payment processors across the globe. It provides users with limitless opportunities to create, send and trade in various cryptocurrencies–allowing fast conversions from one currency into another via its native digital coin XLM (also Lumens). As a secure third-party mediator acting as a bridge between different currencies around the world, Stellar has revolutionized borderless money transfers.
The Stellar network harnesses the power of its innovative Federated Byzantine Agreement (FBA) algorithm to speed up transaction processing. This protocol works by having “quorum slices” – a portion of the network – approve and validate transactions, instead of waiting for approval from every miner on board.
The Stellar network operates like a well-oiled machine, connecting trustworthy nodes together in order to approve transactions quickly and efficiently. Thanks to its streamlined process, it can complete up to 1000 operations per second – making the whole experience lightning fast.
By foregoing some levels of decentralization, Stellar is able to offer blazing-fast transactions that are incredibly efficient. This trade-off allows for stellar performance and cost savings.
Thanks to its system, Stellar is able to process transactions within five seconds. The transaction fee is currently 0.00001 XLM, which is a small fraction of a penny at current prices. (The fee may increase when network activity is high, but it will still be relatively low.)
What makes Stellar unique?
Stellar is setting a revolutionary new standard in the cryptocurrency world by creating an interconnected network that combines existing financial systems and cryptocurrencies together, allowing them to work seamlessly side-by-side.
This network is revolutionizing the way we conduct financial transactions by using distributed ledger technology – a fast, secure, and open-source network. Their mission is to make it easier for individuals to send money anywhere in the world with minimal fees or hassle. XLM provides an efficient solution for cross-border payments which can otherwise be expensive and slow when processed through traditional methods of transfer.
In addition to facilitating transactions, Stellar also serves as a global marketplace. With built-in order books tracking asset ownership, users are provided an easy and secure way to buy/sell their favorite assets from the comfort of any device. All while utilizing Stellar’s native cryptocurrency XLM for discounted transaction fees.
On top of that, Stellar is committed to a secure network, where users must possess at least one XLM token in order to keep their account active. Also, Lumens work to safeguard the Stellar Network from malicious flood attacks, by making microtransactions too costly for hackers.
In 2013, Jed McCaleb and lawyer Joyce Kim embarked on a mission to revolutionize the global financial system by launching Stellar.
Jed McCaleb, founder of Stellar, envisions a world where traditional fiat currencies can coexist with digital assets, such as Bitcoin or Ripple, in order to increase accessibility and usage in the mainstream.
In October 2017, Stellar caused a stir when it teamed up with IBM to create multiple currency paths between countries in the South Pacific. The joint venture was designed to streamline and automate cross-border payments for companies of all sizes—from small businesses to non-profits and banking institutions—enabling more efficient commercial exchanges across borders. For example, this partnership provided an opportunity for farmers in Samoa who needed access international markets; they could now complete transactions securely with buyers located as far away as Indonesia.
Later in 2016, Deloitte’s tech partnerships paved the way for Stellar to develop a revolutionary payments app. A few years later in 2017, 30 banks had decided to jump on board with this innovative blockchain system introduced by Stellar and its founder Jed McCaleb.
Stellar’s open-source network offers a unique opportunity for companies to create and explore their own blockchain applications. They can develop wallets, apps or even launch their own digital currency using the vast array of tools available on the Stellar platform. Additionally, users may take advantage of its robust payment system and have access to quick conversions between different currencies.
Who created Stellar (XLM)?
Jed McCaleb, a prominent figure in the crypto space, is renowned for creating Stellar (XLM). He has also had success outside of cryptocurrency by co-founding the Stellar Development Foundation.
What are the benefits of using Stellar (XLM)?
Stellar (XLM) offers unbeatable convenience, security and affordability for users looking to make quick payments. Through its open-source database, decentralized network and efficient consensus mechanism, Financial transactions are authenticated by the community in just a few seconds – providing lightning fast service at an incredibly low cost with annual inflation of only 1%.
What is the circulating supply of Stellar (XLM)?
When the Stellar network was launched in 2015, a total of 100 billion XLM coins were issued. However, the total supply and circulating supply of XLM has changed since then. As of 2021, the total supply of XLM is 50 billion, and the circulating supply is 20.7 billion.
In 2019, the Stellar Development Foundation announced that it was burning over half of the cryptocurrency’s supply, giving it control over approximately 30 billion XLM. Some of this capital is reserved for marketing and development efforts, while a portion is set aside for investments in other blockchain ventures.
As of December 2022, the circulating supply of XLM is approximately 26 billion.