Stellar is a decentralized Blockchain network, optimized for cross-border transactions and payments with fast speed and low cost.
Launched in 2014, Stellar provides a platform for issuing digital assets, allowing asset conversion between different blockchains, supporting peer-to-peer transactions, and creating Tokens based on real assets.
MAIN CONTENT
Stellar uses the Stellar Consensus Protocol (SCP), ensuring security and a transaction confirmation speed of only 5 seconds.
XLM is the main Token of Stellar, used for transaction fees, voting rewards, and providing liquidity.
Stellar's application is widespread in cross-border payments, collaborating with many large organizations such as IBM, Deloitte, and MoneyGram.
What is Stellar?
Stellar is an open-source blockchain designed to support payments and the issuance of digital assets with fast, reliable, and low-cost cross-border transaction capabilities.
Stellar is similar to Ripple but focuses on peer-to-peer transactions between individuals and businesses, helping to overcome difficulties in cross-border currency conversion.
The history of Stellar's formation
Stellar was co-founded by Jed McCaleb and Joyce Kim in 2014, with support from Patrick Collison – CEO of Stripe, which invested in exchange for 2% of the initial total supply of XLM.
McCaleb was a co-founder of Ripple and the founder of the Mt.Gox exchange, due to differences in direction, he left Ripple to develop Stellar with its own SCP consensus protocol since January 2015.
The Stellar Development Foundation builds an open financial network to 'connect everyone in a barrier-free global economy.'
Jed McCaleb, Co-founder of Stellar, 2019
How does Stellar operate?
Stellar operates as a decentralized ownership storage system, without a central authority. The network uses the Stellar Consensus Protocol to reach transaction consensus in 5 seconds.
Nodes verify and confirm transactions, ensuring transparency and synchronization across the network. The Stellar network is operated by hundreds of global nodes, accessible and open for public participation.
What are Stellar's outstanding advantages?
Stellar stands out with the ability to issue Tokens representing real assets 1:1 on the blockchain, facilitating peer-to-peer money transfers and asset conversions between different blockchains.
The platform supports developers through a simple API, allowing the building of DApps without needing to understand complex consensus algorithms in depth.
Overview of the main Token XLM
XLM is the only utility Token on the Stellar network, used for transaction fees, voting rewards, and providing liquidity. Stellar supports over 1000 transactions per second with an average confirmation time of only 5 seconds.
Details Property Token Name Stellar (XLM) Stellar blockchain Blockchain Consensus Protocol Stellar Consensus Protocol (SCP) Total Supply 50,001,803,036 XLM Circulating Supply 23,250,000,000 XLM (~47%) Processing Capability Over 1000 transactions/second Confirmation Time 5 seconds
How is XLM Token allocated?
The initial total supply was released at 100 billion XLM, of which 50% was issued through a direct registration program, 25% for partnerships, 20% airdropped to Bitcoin holders, and 5% for the Stellar Development Foundation.
What are the main applications of XLM?
XLM is used to pay transaction fees, reward voting activities in the network, and provide liquidity to promote sustainable ecosystem development.
What is Stellar's future development plan (Roadmap)?
Stellar aims to improve scalability, innovate the network, and attract participation from various stakeholders in the ecosystem to build a fairer and more diverse payment system.
The strategy focuses on expanding the network, enhancing community commitment while developing technology and increasing initiatives to broaden global financial inclusion.
Who are the development and advisory team of Stellar?
The Stellar team consists of over 50 multinational members, with reputable advisors such as Patrick Collison (CEO of Stripe), Sam Altman (Chairman of Y Combinator), and Naval Ravikant (Founder of AngelList).
These experts contribute to promoting the vision and development strategy of the project based on practical experience in the technology and finance fields.
Who are the major investors and partners of Stellar?
The most notable funding round for Stellar was $3 million from Stripe in 2014. The project has established partnerships with leading organizations such as IBM, Deloitte, and MoneyGram to develop DeFi solutions.
What are the popular wallets and exchanges for storing and trading XLM today?
XLM can be stored on various wallets such as Keybase, Lobstr, StellarTerm, Coinbase Wallet, or hardware wallets like Ledger Nano S, Trezor to ensure asset safety.
XLM is traded on over 30 major international exchanges such as Binance, Coinbase, Bittrex, Huobi, with Binance being the exchange with the largest XLM trading volume.
How is Stellar applied in practice?
Stellar supports a wide range of practical applications from micro-payments to digital banking, implemented by partners such as Praekelt Foundation, Deloitte, IBM, and MoneyGram.
For example, the Praekelt Foundation uses Stellar to help women in the Sub-Saharan Africa region access microcredit, while IBM collaborates with Stellar to develop a cross-border payment system in the South Pacific.
Stellar aims to build an open financial network, including many organizations and individuals, to create fairness and accessibility in global payments and money transfers.
Patrick Collison, CEO of Stripe, 2018
What are the future forecasts for Stellar and XLM?
Stellar aims to become a payment platform rather than a store of value. As it has been around for a while, the investment appeal of XLM tends to decrease in the face of the rapid explosion of new blockchains and Tokens.
Nevertheless, the ecosystem and technology of Stellar still play a crucial role in the field of decentralized cross-border payments.
Frequently asked questions about XLM
What are the differences between Stellar and Ripple?
Stellar uses the Stellar Consensus Protocol with a Federated Byzantine Agreement algorithm, focusing on micro and personal money transfers, while Ripple uses the Ripple Protocol Consensus Algorithm, aimed at banking organizations. Stellar is a non-profit organization, while Ripple is for-profit.
Where is the most reputable place to buy XLM?
XLM is listed on many major exchanges like Binance, Coinbase, Huobi, Kucoin with high liquidity. Users should choose exchanges with large trading volumes for convenient and safe trading.
What is XLM used for?
XLM serves to pay transaction fees, rewards for governance votes in the network, and provides liquidity, playing an essential role in the operation of Stellar.
Is Stellar safe?
With a decentralized network of hundreds of global nodes and the SCP consensus protocol, Stellar provides a high-security mechanism, preventing central control and ensuring transaction transparency.
What technology does Stellar develop on?
Stellar was originally developed based on Ripple but quickly switched to its own SCP consensus protocol, supporting more efficient and flexible transaction confirmations.
Source: https://tintucbitcoin.com/stellar-xlm-la-gi/
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