Stellar is an open-source and decentralized protocol facilitating the transfer of digital currencies to fiat currencies. It has a network called Stellar network which is a distributed blockchain based ledger and database that connects banks and financial institutions across the globe. It also has a cryptocurrency called Stellar Lumens which is denoted as XLM. The popularity of Stellar is increasing day-by-day due to its innovative features. IBM will use Stellar technology and Stellar Lumens (XLM) as a conduit.
Mentioned below are 10 things you didn’t know about Stellar and you must know them before coming into its world:
The network system of Stellar was launched by Jed McCaleb and Joyce Kim in 2014. At first, Jed McCaleb created a project called ‘Secret Bitcoin Project’ with an aim for testing. Stellar has collaborated with Stripe CEO Patrick Collison to create a non-profit foundation called the nonprofit Stellar Development Foundation. The official launch was completed.
Stellar has secured $3 million in a seed funding round from Stripe. Stellar was released as a decentralized payment network and protocol along with Stellar’s XLM. In April 2015, the non-profit foundation came up with an upgraded protocol with a new consensus algorithm which actually went live in the same year.
Stellar Consensus Protocol (SCP)
Stellar Consensus Protocol (SCP) is used by the new consensus algorithm. SCP is created by Stanford professor David Mazières. It is a construction for federated Byzantine agreement (FBA). It is created to address major problems related to decentralization, speed, and energy consumption. It makes sure that a system should continue to function despite failures or malware attacks. It also makes sure that only accurate, consistent and correct value should be agreed upon while maintaining its security at the same time.
How Stellar Works
Each node is supposed to choose its trustworthy nodes known as verification nodes that run Stellar Core to verify transactions. Stellar Core is basically the key factor of the Stellar network which manages a local copy of the ledger, communicates and syncs with other Stellar Cores in the network. The Stellar network is basically a series of Stellar Cores. Once a transaction is verified, then it will be added to the existing ledger. Stellar requires a few seconds to complete a transaction. Along with a short transaction time, it has a lower transaction cost.
XLM Being Used For
Stellar Lumens is designed to support Micropayments, Remittance, Mobile Money and Cross-border Transaction. Micropayment is a small financial transaction that occurs online. It offers incremental payment options and decreases smaller transfers costs. Remittance is a sum of money sent to different parts of the world quickly. Mobile Money is an electronic wallet service that allows users to store, send and receive through their money phone. Cross-border Transaction is an International Transaction and Stellar aims to provide financial services to those areas of the world which are unbanked or disconnected from the economic network through this transaction.
Stellar XLM is supported by a team of experts including developers, entrepreneurs, and venture capitalists. Some of the key faces are Jed McCaleb, Joyce Kim, and David Mazières. Jed McCaleb is an American programmer and entrepreneur. He is also the CTO of Stellar.org and the co-founder of Ripple. Joyce Kim is the executive director and the co-founder of Stellar.org. She is the former VC at Freestyle Capital. David Mazieres is a professor of Computer Science at Stanford University. He is also the scientist at Stellar Development Foundation (SDF).
Stellar Lumens (XLM) wallets are virtual wallets which enable users to store their funds in a secure way. Some of the wallets are Ledger Nano S, Stellar Desktop Client – Foxlet, Stargazer, Lobstr, Guarda and StellarTerm. Ledger Nano S acts as a USB device and has a built-in OLED screen which helps in checking transaction details. Foxlet is easy to use, available on Windows and Linux. Stargazer offers multilingual support, available for both desktop and mobile devices. Lobstr is also easy to use and has features like 2-factor authentication, PIN protection, and fingerprint support. Guarda offers an easy way to use multi-currency, available for both mobile and web versions. StellarTerm enables users to view account balances and see popular exchange markets.
How To Buy
You need to have a Stellar wallet before buying Stellar’s XLM. Look out for an exchange who offers XLM so that you will come to know on which exchange you should create your account. You have to deposit fiat currencies [USD, TRY, JPY, EUR, GBP, KPW] in the wallet in order to receive digital currencies. You can also buy XLM with Bitcoin or Ethereum. You can either buy a Stellar wallet from the respective cryptocurrency trading platform or separately.
Where To Buy
Stellar’s XLM may not be available in all cryptocurrency exchanges because it is limited to crypto to crypto exchanges. Some of the exchanges that facilitate the purchasing of Stellar Lumens with BTC and ETH are Binance, Poloniex, Bittrex, Kraken, Aex, and BTC38. You can buy XLM with USD and EUR on BitFinex, Indacoin, and CEX.IO.
Stellar has gained worldwide key partnerships due to its innovative features like a short confirmation time and the ability to handle thousands of transactions per second. Apart from IBM, some of the prominent partners are ICICI Bank, Deloitte, and KlickEx. ICICI Bank Limited is India’s largest private bank that offers a wide range of banking products and services. Deloitte is one of the leading global firms that provides tax, consulting, and financial advisory services. KlickEx is an award-winning platform that provides regional low cost electronic foreign exchange clearing services.
Stellar Lumens (XLM) is one of the top-10 cryptocurrencies by the market capitalization. At the time of writing, the market cap of XLM is $2,188,705,329, the trading volume is $174,143,109, the circulating supply is 19,165,374,491 XLM and the price value is $0.114201. According to Coingecko, XLM’s price was $0.00254600 and its trading volume was $40,826 on January 3, 2017. In December 2018, its price value was around $0.320872 with $384,929,000 trading volume. In January 2018, it reached its highest peak at $0.875563 USD and $1,498,850,00 volume.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]