What is Stellar?
Stellar is a blockchain network that enables fast, low-cost cross-border transactions using its native token, XLM. It connects banks, payment systems, and individuals to facilitate seamless currency exchanges and remittances. Developed by the Stellar Development Foundation, Stellar is designed to create a more inclusive and efficient financial ecosystem.
Stellar goals
The purpose of Stellar is to simplify international payments by reducing the costs and delays associated with traditional banking systems. It seeks to bridge the gap between established financial institutions and underbanked populations by providing an accessible platform for cross-border transactions. Additionally, Stellar supports asset tokenization and decentralized finance applications, offering versatile use cases across global markets.
Stellar fondamentals
Stellar has a controlled total supply of tokens currently set at 50001786893 XLM. A token burning mechanism was implemented to reduce an initially larger supply to a more sustainable level. The token distribution plan allocated a significant portion of tokens to the Stellar Development Foundation to fund ongoing development, network security, and ecosystem growth.
Marketcap
$8.873B
Total number of Stellar
50001786893 XLM
Stellar technology
Stellar operates on an open-source blockchain that leverages a federated consensus protocol to achieve quick and efficient transaction validation. This technology enables the network to finalize transactions with minimal energy consumption and high scalability. In addition, Stellar supports a distributed asset exchange and programmable smart contracts, enhancing its capability to serve various financial applications.
Stellar competitors
Stellar differentiates itself from competitors by focusing on both established financial institutions and underbanked communities. Its unique federated consensus protocol delivers rapid, secure, and cost-effective transactions compared to traditional mining-based systems. While competitors like Ripple target institutional clients with a more centralized approach, Stellar emphasizes financial inclusion and offers flexible solutions such as asset tokenization.
Stellar price history
Frequently asked questions
Stellar is an open-source blockchain network focused on enabling fast, low-cost cross-border transactions using its native token, XLM. It plays a vital role in linking banks, payment services, and individuals, thereby simplifying international payments. Its design has a significant impact on financial inclusion by offering solutions to both traditional and underbanked markets.
Stellar utilizes a federated consensus protocol that requires only a select group of trusted nodes to validate transactions. This streamlined process allows transactions to be confirmed rapidly and efficiently. As a result, the network can handle a high volume of operations without the delays typical of traditional proof-of-work systems.
The XLM token is integral to Stellar's operation, serving primarily to pay for transaction fees on the network. It acts as a bridge currency, facilitating exchanges between different fiat and digital currencies. Moreover, XLM contributes to the overall security and performance of the network, ensuring smooth financial transactions.
Stellar employs a token burning mechanism to control its total token supply, which is currently set at 50001786893 XLM tokens. This approach helps to maintain the value of XLM by reducing an initially oversized supply. The token distribution strategy also supports long-term ecosystem development and network security by allocating resources strategically.
While both Stellar and Ripple are designed for cross-border payments, Stellar places a strong emphasis on financial inclusion and accessibility for underbanked populations. Its open-source framework and federated consensus protocol offer greater transparency and flexibility compared to Ripple’s more centralized model. These differences enable Stellar to serve a broader range of financial use cases, such as asset tokenization and decentralized finance applications.
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