Stellar (XLM) is a blockchain-based platform and #cryptocurrency designed to facilitate fast, low-cost cross-border payments and asset transfers. It was created in 2014 by Jed McCaleb and Joyce Kim and is maintained by the Stellar Development Foundation, a nonprofit organization.
Key features and aspects of Stellar (XLM) include:
Decentralized Network: Stellar operates on a decentralized network of servers that validate and record transactions. It is designed to be open and accessible to anyone.
Fast and Low-Cost Transactions: Stellarâs consensus protocol allows for quick confirmation of transactions, typically within a few seconds. Transaction fees on the Stellar network are typically minimal, making it cost-effective for transferring both traditional and digital assets.
Anchors: Stellar uses the concept of âanchorsâ to represent real-world assets (e.g., fiat currencies, commodities) on the blockchain. These anchors issue tokens on the Stellar network that are backed by the corresponding real-world assets. Users can then trade these tokens on the Stellar platform.
Smart Contracts: While Stellar is primarily known for its payment and asset transfer capabilities, it also supports a limited form of smart contracts. These contracts are called âsmart contractsâ on Stellar and allow for the automation of specific actions and conditions.
Cross-Border Payments: Stellar is particularly well-suited for cross-border payments and remittances. It aims to simplify the process of sending money across borders, making it more efficient and affordable, especially in regions with limited access to traditional banking services.
Lumens (XLM): Lumens (XLM) is the native cryptocurrency of the Stellar network. It serves multiple purposes, including preventing spam on the network (transaction fees), facilitating multi-currency transactions by acting as a bridge, and supporting the creation and exchange of assets on the platform.
Stellar has gained attention for its focus on financial inclusion and its mission to make financial services more accessible to underserved and unbanked populations worldwide. It has formed partnerships with various financial institutions and organizations to help achieve these goals.
