Stellar is a decentralized blockchain platform and cryptocurrency designed to facilitate cross-border payments and enable fast, low-cost transactions. Coinidol.com takes a closer look o XLM token.
It was founded in 2014 by Jed McCaleb, one of the co-founders of Ripple, and Joyce Kim. Stellar aims to connect financial institutions, payment systems, and individuals to create an inclusive global financial network.
Fast and low-cost transactions
Stellar’s blockchain is designed to process transactions quickly, typically in a few seconds, and with very low fees. This makes it suitable for micropayments and cross-border remittances.
It has a built-in decentralized exchange that allows users to trade various assets issued on the Stellar network, including fiat currencies and other cryptocurrencies, with each other.
Anchors and issued assets
Stellar uses a unique concept of “anchors” to facilitate the transfer of real-world assets onto the blockchain. Anchors act as bridges between the traditional financial system and the Stellar network, enabling the issuance and redemption of digital representations of assets like fiat currencies, commodities, and other financial instruments.
Moreover, Stellar uses FBA to enable faster and more flexible consensus compared to traditional Proof-of-Work (PoW) or Proof-of-Stake (PoS) mechanisms.
Stellar (XLM) token
Stellar (XLM) is the native cryptocurrency of the Stellar. XLM, or Lumens, is used to pay for transactions on the network and can also act as a bridge currency to convert between different currencies during international transactions.
The Stellar Consensus Protocol, a decentralized consensus mechanism, is used to validate and agree on transactions across the network.
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