Introduction to Stellar Lumens

Stellar Lumens, known as Stellar in English, and the token abbreviated as XLM, was founded in 2014. The initial issuance is 100 billion, of which 95% of the Stellar Lumens are distributed for free. It is not the fixed upper limit of 100 billion as many people say. Inflation will be 1% every year, and the current total issuance is about 105 billion.

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Stellar is a completely open source distributed hybrid blockchain. The purpose is to build a decentralized gateway for the transmission between digital currency and legal currency to promote the cross-asset transfer of value. Just integrate into the Stellar network and you can join a An open global financial network in which every actor has equal access and economic participation.

The main pain points that the Stellar Consensus Protocol wants to solve are that the current financial infrastructure system is too closed, there are gaps between systems, high transaction costs, and slow capital transfer speeds. The median transaction confirmation time of the Stellar network is 5 seconds. In theory The transaction throughput per second can reach 1,000.

project team

Stellar is a digital currency project launched in 2014 by Jed McCaleb and is a diverse team with board members including former Square COO Keith Rabois, Stripe CEO Patrick Collison, and Dogecoin co-founder Jackson Palmer, as well as AngelList co-founder Naval Ravikant will serve as a consultant for the project, and the team has very rich operational experience.

Jed McCaleb, founder of Stellar Lumens

So who is Jed McCaleb?

Jed McCaleb, an Arkansas native, was born in a single-parent family and raised by his mother. Jed was proficient in mathematics and science since he was a child, and was successfully admitted to UC Berkeley, a university that has trained more than 90 Nobel Prize winners. He dabbled in The only shortcoming is that he lacks concentration and eventually chooses to drop out of school. Some clues can be seen from his subsequent entrepreneurship.

His personal entrepreneurial experience is very rich. He developed the famous P2P file sharing software eDonkey Network, which is the largest P2P file sharing software in the world. In other words, before entering the blockchain industry, he was already He is very famous. The Mentougou exchange Mt.Gox he later founded in 2010 was the largest exchange in the world at the time. At its peak, this exchange once accounted for 90% of the world's BTC trading volume!

However, he quit Mt. Gox very early, so the subsequent collapse has nothing to do with him. From 2011 to 2013, he was the founder of the Ripple currency project that was always among the top three in market value. Therefore, the two projects Stellar and Ripple often They will be compared together. In fact, they are all targeted at cross-border payments. The reason why he left Ripple was also because of the disagreement with several other founders, which led Jed McCaleb to leave Ripple and create Stellar. currency.

It can be said that Jed McCaleb is an out-and-out legend. Currently, Ripple and Stellar are among the top ten blockchain projects by market value. In the blockchain field, if you have to find a great god who is closest to Satoshi Nakamoto , Jed is undoubtedly the best candidate!

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Similarities and Differences between Stellar Lumens and Ripple

1. Stellar is an upgrade to Ripple. Both cryptocurrencies were invented by Jed McCaleb and have made many improvements on the basis of technology, especially the related consensus mechanism and verification algorithm. Stellar Network running node performance is improved and node resource requirements are very low.

2. Although Stellar and Ripple are both positioned for cross-border payments, they are still different. Ripple is more inclined to serve corporate institutions, while Stellar is more inclined to serve individual customers. Ripple adopts a corporate system, and all tokens are made by Ripple Labs controls it, while Stellar is owned by SDF (Stellar Development Foundation).

3. Stellar Lumens is actually a hard fork of Ripple. The relationship between the two is similar to BCH and BTC, ETH and ETC. It is for this reason that the relationship between the two is also mysterious.

4. In terms of token distribution, 60% of Ripple’s tokens are held by the founders, while 95% of Stellar’s ​​tokens are distributed to partners and users. In terms of inflation, the total number of Ripple tokens is fixed at 100 billion , while Stellar Lumens maintains an inflation rate of 1%.

5. The significance of Stellar Lumens is that it can play an anti-spam attack role in the Stellar network. Each transaction consumes XLM, which makes network spam attacks very expensive, while Ripple transactions do not consume XRP.

6. In terms of concept, Ripple is mainly aimed at large banks or other financial institutions, while Stellar is suitable for a wider range of people, including ordinary people without bank accounts, and is more inclusive.

Final summary

Both Stellar Lumens and Ripple are outliers in the crypto world. In general, BTC and ETH have clearly positioned themselves to create decentralized financial networks by subverting the traditional banking system. Stellar Lumens and Ripple They are seeking to cooperate with the established financial world and are committed to improving the speed and reliability of cross-border payments, reducing transaction costs and improving promotion efficiency.

Because they came from the same school, Ripple and Stellar have always been both brothers and competitors. It can be said that the biggest competitor in the development of Stellar is Ripple. In the field of cross-border payments, Ripple has the first-mover advantage. , it will be irreplaceable for a while, but the service subjects of the two companies are different, and they will probably coexist in the future.

Stellar Lumens has cooperated and exchanged with international companies such as IBM, Deloitte, and Stripe, and has developed quite well. The current market value of Stellar Lumens is 13.1 billion, and Ripple is 91.7 billion, which is exactly 1/7 of Ripple. This gap is gradually increasing. become smaller. In the short term, Stellar Lumens may not necessarily have an absolute advantage in terms of market value, resource support, etc., but in the long term, Stellar Lumens has greater room for growth. Investors are investors. I believe Jed McCaleb will lead Stellar sooner or later. Coin catches up with Ripple!