Stellar (XLM)
Stellar is a notable cryptocurrency network supported by the Stellar Development Foundation (SDF), which is a non-profit organization responsible for facilitating cross-platform transactions and microtransactions. Initially forked from Ripple's XRP, Stellar underwent significant updates in November 2015 with the implementation of the Stellar Consensus Protocol (SCP) to enhance decentralization. The network operates using its digital currency, Lumens (XLM).
Stellar network
| Ticker | XLM |
| Category | Cryptocurrency |
| Website | https://www.stellar.org/ |
| @stellarorg | |
| https://www.reddit.com/r/stellar |
The Stellar Network is an open-source, peer-to-peer platform established in 2014 by the SDF. It aims to streamline the transfer of financial resources at minimal costs, connecting individuals, banks, and payment processors to create, send, and trade various cryptocurrencies. The network's mission is to facilitate low-cost cross-border payments, with a minimal transaction fee of 0.00001 XLM. Stellar prioritizes transaction-heavy projects for blockchain ledger inclusion and utilizes a selection process for equally fee-paying projects.
Anchors
Anchors are integral to Stellar’s system, acting as trusted entities that hold deposits and issue credit. They bridge traditional banking systems with the Stellar network, facilitating asset issuance and enabling seamless transfers. Anchors function similarly to financial institutions, allowing funds to be held and converted into various fiat currencies. They also capitalize on different business models, such as transaction fees and foreign exchange spreads, to link Stellar with traditional finance.
History of Stellar
Stellar was founded in 2013 by Jed McCaleb, a co-founder of Ripple, and lawyer Joyce Kim. McCaleb envisioned Stellar as a platform where fiat and crypto assets operate in parallel. In 2016, Joyce Kim resigned, passing the role of executive director to McCaleb. In March 2019, Denelle Dixon joined as CEO, with McCaleb transitioning to the role of Chief Architect.
Stellar Lumens (XLM)
Lumens (XLM) serve as the native currency of the Stellar network, facilitating transactions and covering fees. Initially, 100 billion XLM were issued, with an annual 1% inflation rate, which was later discontinued by community decision in 2019. Stellar utilizes the Stellar Consensus Protocol (SCP) for transaction validation, based on a proof-of-stake model, requiring a minimum of one XLM for an active account.
Utility
Spam prevention
Lumens cover transaction fees and maintain minimum account balances, reducing spam transactions on the network. Each transaction incurs a fee of 0.00001 lumens.
Multi-currency transactions
Lumens enable trades between different currencies, especially where direct markets are insufficient.
Decentralization
Stellar’s open-source database allows community-authorized transactions, with data transparently stored on the blockchain.
Transfer speed
The Stellar consensus mechanism facilitates transactions within 3-5 seconds, supporting high transaction volumes and complex functionalities like smart contracts.
Low transaction cost
Stellar offers low transaction costs compared to traditional methods, contributing to its efficient financial operations.
The Meridian Conference
The Meridian Conference is an annual event organized by Stellar, with the 2022 edition held in Rome, Italy, under the theme "The Urgency of Doing." It featured keynotes, panels, and interactive sessions. The 2023 conference is scheduled for Madrid, Spain, with Idris Elba as the opening speaker.
Soroban
In 2022, SDF announced Soroban, a Turing-complete smart contracts platform on Stellar, launched on Futurenet for developers. Soroban aims to offer a developer-friendly experience, enabling the creation of scalable smart contracts. SDF has allocated a $100M adoption fund to support developers using Soroban.
Stellar Enterprise Fund
Launched in 2020, the Stellar Enterprise Fund is a venture-style fund aimed at expanding the Stellar network through investments in fintech and blockchain companies. In 2022, it invested $23.525 million across five companies, supporting startups in key markets like Africa and Latin America.
Partnerships
MoneyGram Access
In June 2022, SDF partnered with MoneyGram to launch MoneyGram Access, a global service bridging cash and cryptocurrencies. It facilitates financial inclusivity by enabling digital wallet interoperability.
Stellar Aid Assist
Built on MoneyGram Access, Stellar Aid Assist helps aid organizations deliver cash assistance through digital wallets. It was recognized for innovation at the Digital Currency Conference in 2023.
Stellar x Bitso
In July 2023, Bitso integrated Stellar's Anchor Network to enhance payment corridors between Latin America and the world, enabling transactions in USDC across Argentina, Colombia, and Mexico.
Other partnerships
Stellar has partnered with various platforms including Binance, Bitfinex, Coinbase, Crypto.com, and others, to enhance its network's global reach and functionality.