Stellar is a decentralized, open-source blockchain network designed to facilitate fast, low-cost international transactions. Launched in 2014 by Jed McCaleb, co-founder of Ripple, and Joyce Kim, Stellar aims to connect financial institutions and streamline cross-border payments. The network’s native cryptocurrency, Lumens (XLM), is used to pay transaction fees and maintain accounts on the blockchain.
Stellar operates on a unique consensus protocol known as the Stellar Consensus Protocol (SCP), which ensures secure and efficient transaction validation without relying on traditional mining. This protocol allows for quick settlement times and low energy consumption, distinguishing Stellar from other blockchain networks like Bitcoin and Ethereum.
One of Stellar’s key features is its ability to support multi-currency transactions. Users can send and receive different currencies through its built-in decentralized exchange, which automatically converts the currencies at the best available rate. This functionality is particularly beneficial for remittances and international trade.
Stellar’s ecosystem includes a range of projects and partnerships with financial institutions, payment providers, and companies seeking to leverage blockchain technology for various use cases, including microfinance, mobile banking, and digital asset issuance. Its focus on financial inclusion and interoperability makes Stellar a prominent player in the blockchain industry.