Stellar (XLM) is a payment-focused digital currency that runs on the Stellar network, a decentralized open blockchain.
One might say that if Bitcoin and XRP were to get married, Stellar would be the child. It possesses the great qualities of these two strikingly different cryptocurrencies.
It is permissionless and decentralized, like Bitcoin. At the same time, moving value within the platform is fast, cheap, and energy-efficient, just like in XRP.
The aim of the Stellar project is to be able to move all forms of money, whether that be dollar, yuan, or bitcoin, like email. Essentially, they want to unite all financial systems under one single platform — the Stellar network.
The project is managed both by the Stellar Development Foundation, a non-profit organization, and its community. It is completely owned by the public, which means that there are no leaders, not even the founding members.
The Stellar Development Foundation was founded in 2014 by serial entrepreneur and programmer Jed McCaleb, and former lawyer Joyce Kim. That same month, the Stellar protocol was also released.
McCaleb is one of the most acclaimed individuals in the crypto space and is considered a genius by his peers. He had founded several companies that developed decentralized systems such as eDonkey, Overnet, and the scandalous Mt Gox—one of the first bitcoin exchanges in the world.
Furthermore, he was also the co-founder and former CTO of Ripple Labs, which brought about XRP — currently the top third digital currency in market cap and number one rival of Stellar Lumens (XLM).
Stellar has secured partnerships with several major players in finance and tech including IBM, Stripe, HTC, Deloitte, Wanxiang Group, and many more.
Six banks are currently working on the issuance of their own stablecoins on an IBM payment system, using the Stellar blockchain. Among them are RCBC (Philippines), Banco Bradesco (Brazil), and Bank Busan (South Korea).
The Stellar network is a decentralized blockchain that enables fast and low-cost payment transactions worldwide.
It connects individuals, banks and other institutions, and payment processors in order to revolutionize payments and remittances, making them faster, safer, and cheaper than the current banking landscape.
The Stellar network consists of several interconnected components:
- Stellar Consensus Protocol
- Stellar Core
Stellar Consensus Protocol
The Stellar Consensus Protocol (SCP) is an algorithm that ensures that a decentralized system remains homogeneous (have similar protocols and configurations) and tamper-free. It does this by keeping the majority of the network participants in agreement with the state of the network.