Learn About Stellar
Stellar is a decentralized blockchain network designed to facilitate cross-border transactions. Its native cryptocurrency, Lumens (XLM), powers the ecosystem. A common misconception is referring to Stellar as "Stellar Lumens"—Stellar is the network, while Lumens (XLM) is its currency.
The Stellar Network enables seamless transfers of traditional currencies (euros, dollars), cryptocurrencies (Bitcoin), and tokenized assets (stocks, gold). Transactions are streamlined using XLM to reduce friction and costs.
How Does Stellar Work?
Stellar operates via a decentralized server network running the Stellar Consensus Protocol (SCP). Unlike proof-of-work blockchains (e.g., Bitcoin), SCP ensures fast, energy-efficient transactions by allowing independent nodes to sync and reach consensus without central oversight.
Key features:
- Anchors: Trusted entities bridge external assets (e.g., bank deposits) to the Stellar blockchain.
- Decentralization: Anyone can run a verification node using Stellar Core, enhancing network security.
Who Created Stellar?
Jed McCaleb, co-founder of Ripple (XRP), launched Stellar in 2014 after leaving Ripple. He also founded the Stellar Development Foundation (SDF), the nonprofit overseeing XLM’s development.
Other key figures:
- David Mazieres: Designed the SCP.
- Denelle Dixon: CEO of SDF.
- Joyce Kim: Former SDF Executive Director.
What Makes Stellar Unique?
Stellar stands out for:
- Decentralization: No single entity controls the network.
- Multi-Asset Support: Handles fiat, crypto, and tokenized assets.
- Speed & Low Cost: Transactions settle in ~5 seconds for negligible fees.
👉 Discover how Stellar compares to other blockchains
Stellar’s Value Proposition
- Finite Supply: Initially 100 billion XLM; reduced to ~50 billion after 2019 community votes.
- Transaction Burns: Each transaction destroys 0.00001 XLM to prevent spam.
- Use Cases: Cross-border payments, asset tokenization, and partnerships (e.g., IBM, Samsung).
Stellar (XLM) Tokenomics
- Circulating Supply: ~50 billion XLM (as of 2024).
- All-Time High: $0.889 (January 2018).
- Security: Decentralized nodes and transaction fees deter spam.
How to Use Stellar
Stellar Wallets
Choose a wallet based on security and convenience:
- Hot Wallets: Kriptomat (user-friendly, integrated trading).
- Hardware Wallets: Ledger (offline security).
👉 Explore secure wallet options for XLM
Buying & Selling XLM
Platforms like Kriptomat allow easy XLM purchases with fiat or crypto. No mining/staking exists due to XLM’s fixed supply.
Conclusion
Stellar (XLM) is a decentralized payment network targeting global financial inclusivity. Unlike Ripple’s institutional focus, Stellar empowers individuals with fast, affordable cross-border transactions.
Stellar FAQ
How is Stellar different from Ripple (XRP)?
Both were founded by Jed McCaleb, but Stellar is decentralized and consumer-focused, while Ripple targets banks.
Is XLM anonymous?
No—transactions are pseudonymous (similar to Bitcoin).
How fast are XLM transactions?
~5 seconds, with no confirmations needed.
Where can I buy XLM?
Exchanges like Kriptomat support XLM purchases with multiple payment methods.
What’s Stellar’s current price?
Check real-time XLM prices on crypto tracking platforms.
Final Notes: Stellar’s blend of speed, low cost, and asset flexibility positions it as a standout in blockchain-based payments. For updates, follow the Stellar Development Foundation.