Stellar is a decentralized blockchain platform designed to facilitate cross-border payments and asset transfers. Founded in 2014 by Jed McCaleb and Joyce Kim, it aims to connect financial institutions, businesses, and individuals through a low-cost, high-speed transaction system.
Key Features of Stellar
- Decentralized Network: Operates without central authority, using blockchain consensus.
- Fast & Low-Cost Transactions: Processes payments in 3–5 seconds with negligible fees (~0.00001 XLM per transaction).
- Multi-Currency Support: Enables exchanges between traditional fiat and digital currencies.
👉 Discover how Stellar compares to other blockchain platforms
XLM (Lumens): The Native Cryptocurrency
XLM serves three primary purposes:
- Transaction Fees: Paid in XLM to prevent spam.
- Bridge Currency: Facilitates trades between incompatible currencies.
- Account Minimums: Requires 0.5 XLM reserve per wallet.
Stellar Development Foundation (SDF)
The non-profit SDF oversees protocol upgrades and ecosystem growth, emphasizing financial inclusion—especially in underserved regions.
History of Stellar
2014–2015: Early Vision
- Launched as a fork of Ripple’s protocol, focusing on micropayments and user-friendly design.
- Renamed tokens from "Stellar" to "Lumens" (XLM) for clarity.
2017: Strategic Partnerships
- Collaboration with IBM for cross-border solutions boosted adoption.
2019: Supply Reduction
- SDF burned 55 billion XLM (reducing supply to 50 billion) to improve scarcity and efficiency.
FAQ
Q: Who created Stellar?
A: Jed McCaleb (ex-Ripple co-founder) and Joyce Kim, with a vision for inclusive finance.
Q: How does Stellar differ from Ripple (XRP)?
A: Stellar targets individuals and small transactions, while Ripple serves large institutions.
Q: Why hold XLM?
A: It’s essential for transactions, acting as a bridge currency and securing accounts.
👉 Learn more about XLM’s role in decentralized finance
Conclusion
Stellar’s focus on affordability, speed, and interoperability positions it as a key player in global payments. With SDF’s stewardship, the platform continues evolving toward broader financial inclusion.