Stellar: what is it, how does it work and what is the price of XML

What is Stellar (XLM)?

Stellar (XLM) is a blockchain platform for transferring digital assets around the world whose purpose is to provide users with the ability to make payments quickly, cheaply and securely. Launched as a competitor to Ripple in 2014 by XRP co-founder Jed McCaleb.

Stellar Development Foundation (SDF) or Stellar.org, is an organization whose main objective is to solve the problems that today prevent anyone from accessing the banking world.

Stellar wants to become the bank of the future, a solid alternative that offers the same services as a bank but without intermediaries or excessive commissions.

Its decentralized open sourceStellar (XLM) protocol, which allows transfers from cryptocurrencies to fiat and vice versa, is one of its main characteristics. Its purpose is to allow easy, fast and secure cross-border transactions between any pair of currencies.

history of the Stellar

cryptocurrency Jed McCalebexchange Mt. Gox and co-founder of Ripple, together with the lawyer Joyce Kim, launched the project in 2014. Later, the Stellar Development Foundation, in collaboration with Patrick Collison.

Collinson is the CEO of Stripe, a company that develops an electronic payment system.was officially launched Stellar with an initial investment from Stripe of $3 million.

In January 2015, there were already approximately 300 thousand user accounts registered on its platform. In addition, its market capitalization exceeded $15 million. In November 2015, the Stellar Development Foundation released a new update to the network. In this update came the new consensus protocol called SCP (Stellar Consensum Protocol).

Characteristics of the XLM

• cryptocurrency Stellar has its own token or monetary unit.
• Stellar has its main repository hosted on Github.
• The bases of its operation are made up of more than 90 different projects, all under the Apache 2.0.
• The projects are created in different programming languages, this means that there is a wide development ecosystem.
• Stellar Consensum Protocol (SCP) is the consensus protocol created specifically for this network.
• It works as a web service, thanks to its horizon worker core, by which most applications can interact with the network.
• Stellar is one of the most innovative initiatives in the crypto world

how does Stellar work?

Stellar can be defined as a system to track ownership. For this purpose, it uses a ledger, known as a ledger, but in this particular case there is no real accountant. Instead, there is a network of independent computers, each verifying the work of the others.

Stellar is a system without a central authority, which means that no one can stop the network or adjust the numbers to their liking. In addition, the ledgers are checked and updated every five seconds.

A unique algorithm, called Stellar Consensus Protocol (SCP), keeps everything in sync. There are many ways to reach an agreement through a decentralized system: Bitcoin's visionary proof-of-work was the first and remains the most famous. SCP is configurable, fast, and energy efficient.

Advantages and Disadvantages of Stellar

Below is a list of the advantages and disadvantages of Stellar (XLM). It is important to analyze and weigh the characteristics based on our objectives and goals to understand whether or not the cryptocurrency fits our needs.

Advantages of XLM

• Get an account at a financial institution.
• Send remittances to other countries for very low commissions.
• Greater volume of transactions between clients (up to 600,000 for only 0.001 dollars).
• Send and receive mobile money to third parties regardless of provider.
• Settlement of transactions in real time (between 2 and 5 seconds).
• Cryptographic security in all operations.

Disadvantages of XLM

• The main disadvantage lies in the low speed of transactions.
• Stellar's security system is far from ideal.
• Stellar is well suited for building simple decentralized applications.
• Stellar's annual inflation rate is 1%.

Stellar - Frequently Asked Questions

Who is behind Stellar?

RippleNet co-founder Jed McCaleb is behind the founding of Stellar as a non-profit organization under the name Stellar Development Foundation.

What is the Stellar System?

Banks, payment systems and people are connected through Stellar. Its main objective is to facilitate cross-border transactions in order to make them faster, safer and cheaper.

how does the Stellar consensus protocol work?

The operation of the Stellar Consensum Protocol (SCP) is detailed in the whitepaper. In it, they explain how the SCP was adapted to a decentralized, permissionless network using quorum and quorum segments.