In this article, I will cover Stellar – a blockchain platform meant to enable better, quicker, and cheaper international financial transactions.
Since Stellar was created to connect conventional and digital economies, it uses XLM, its native cryptocurrency, as a means to make swift cross-border payments. I’ll analyze its characteristics, advantages, and its impact on the future of payments.
What is Stellar Coin ?
Stellar Coin (XLM) is the main coin that powers the Stellar blockchain which enables the speedy and inexpensive movement of money for international transactions.
The company was founded in 2014 by Jed McCaleb and Joyce Kim. Stellar is seeking to provide a connection between the conventional financial world and the emerging decentralized digital economy.
The stellar network allows users to transfer virtually any type of currency or assets, promoting financial inclusion worldwide. XLM coins also act as the interchange currency of the network which aids in trading various types of assets.
XLM has gained huge popularity as a go-to currency for remittances and micro-transactions thanks to the speedy and secure transactions facilitated by its Stellar Consensus Protocol (SCP) unique consensus algorithm.
Here’s an overview table for the Stellar Coin:
| Feature | Details |
|---|---|
| Name | Stellar Coin (XLM) |
| Blockchain | Stellar |
| Founder | Jed McCaleb, Joyce Kim |
| Launch Year | 2014 |
| Purpose | Cross-border payments and financial inclusion |
| Consensus Algorithm | Stellar Consensus Protocol (SCP) |
| Transaction Speed | 2-5 seconds per transaction |
| Transaction Cost | Fraction of a cent |
| Total Supply | 50 billion XLM |
| Current Use Case | Remittances, micropayments, asset transfers |
| Key Partners | IBM, Deloitte, Tempo, and others |
Stellar Price Live Data
Key Features of Stellar Coin
Fast Transactions
Stellar’s network allows transactions to occur between 2 and 5 seconds which is highly efficient for real time payments.
Low Transaction Fees
Stellar charges low transaction fees that are inexpensive, often just a fraction of a cent. This makes them great for micro payments and remittances.
Decentralized Network
Decentralized blockchain powers Stellar’s system that enhances transparency, security, and trust for users around the globe.
Cross-Border Payments
Stellar enables cross border payments with ease which allows transactions made in different currencies. This feature is beneficial for financial inclusion globally.
Stellar Consensus Protocol (SCP)
SCP enables secure, fast, scalable consensus while consuming low power unlike other proof of work consensus systems.
Asset Issuance
Users have the freedom to create their own assets on Stellar thus possessing the ability to make digital currencies and tokens for various purposes becomes hassle-free.
Partnerships with Major Institutions
Partnerships with various global companies such as IBM and Deloitte have helped Stellar leverage blockchain technologies in the financial sector.
Who Are the Founders of Stellar?
In 2013, Jed McCaleb departed Ripple due to disagreements about the company’s future vision and founded Stellar alongside lawyer Joyce Kim.
When asked by CoinMarketCap in September 2020 about the motivation behind Stellar, McCaleb said, “The whole original design of Stellar is super important to drive mainstream adoption. For this reason, it was essential that you can have fiat currencies and other forms of value run parallel with crypto assets.”
The frictionless experience of sending money around the world is something most people normally do not have. Because of this, McCaleb’s goal is to ensure that Stellar provides a way for people to move their fiat into crypto.
In conjunction with being the co-founder of Stellar Development Foundation, which’s mission is to “unlock the world’s economic potential”, he also serves as the CTO of Stellar.
How Safe is Stellar?
The safety of Stellar can be attributed to its nature of being decentralized as well as the strong Stellar Consensus Protocol (SCP) which guarantees secure and swift transactions without the energy consumption that accompanies the traditional proof of work systems.
Furthermore, its transparent as its open-source blockchain gets audited regularly. Besides, his collaboration with credible companies and commitment to financial inclusion help bolster trust in the system.
It is worth noting however, that no system is entirely risk free. Cumulatively with its security measures and design innovations, Stellar’s SCP makes it a suitable platform to reliably perform digital transactions.
Built for Asset Tokenization
Your institution can leverage robust platform features and the global Stellar ecosystem to tokenize and distribute custom assets of your own.
Native Asset Controls
Manage transactions on Stellar with built-in controls for approving, revoking, and freezing assets ensuring precise asset distribution.
Ease of Building
Stellar enables seamless asset tokenization without the need for a smart contract, meaning less development time, counterparty risk, and room for error.
Trust-based Consensus
Stellar’s Proof of Agreement consensus protocol prioritizes fault tolerance and safety, letting you focus more on business priorities and less on the security of the network.
Operating Cost Reduction
Reduce the cost of processing financial transactions by replacing redundant recordkeeping systems with the open-source Stellar blockchain for instant settlement 24/7.
Global Distribution Channels
Plug your asset into an existing ecosystem of on and off-ramps and wallets on Stellar that can distribute your asset to a global market.
Stellar vs. Competitors
| Feature | Stellar Coin (XLM) | Ripple (XRP) | Bitcoin (BTC) | Ethereum (ETH) |
|---|---|---|---|---|
| Fast Transactions | ✅ | ✅ | ❌ | ❌ |
| Low Transaction Fees | ✅ | ✅ | ❌ | ❌ |
| Cross-Border Payments | ✅ | ✅ | ❌ | ❌ |
| Decentralized Network | ✅ | ❌ | ✅ | ✅ |
| Scalability | ✅ | ✅ | ❌ | ✅ |
| Smart Contract Capability | ❌ | ❌ | ❌ | ✅ |
| Consensus Protocol | Stellar Consensus | Ripple’s Protocol | Proof-of-Work | Proof-of-Stake |
| Energy Efficiency | ✅ | ✅ | ❌ | ✅ |
| Institutional Partnerships | ✅ | ✅ | ❌ | ✅ |
Where Stellar Token Available
| Platform | Trading Pairs | Supported Features | Website Link |
|---|---|---|---|
| Binance | XLM/BTC, XLM/USDT, XLM/ETH, XLM/BUSD | Spot trading, Futures, Staking, Mobile app, P2P | binance.com |
| Coinbase | XLM/USD, XLM/BTC, XLM/USDT | Spot trading, Mobile app, Staking | coinbase.com |
| Kraken | XLM/USD, XLM/EUR, XLM/BTC | Spot trading, Futures, Staking, Mobile app | kraken.com |
| KuCoin | XLM/USDT, XLM/BTC, XLM/ETH | Spot trading, Futures, Staking, Mobile app | kucoin.com |
| Gemini | XLM/USD, XLM/BTC, XLM/USDT | Spot trading, Mobile app, Earn feature | gemini.com |
| Huobi | XLM/USDT, XLM/BTC, XLM/ETH | Spot trading, Futures, Staking, Mobile app | huobi.com |
| Gate.io | XLM/USDT, XLM/BTC, XLM/ETH | Spot trading, Futures, Mobile app | gate.io |
The Team Behind This Project
The Stellar Development Foundation (SDF) is an organization of innovators and changemakers, dedicated to building a more accessible world. We’re a global, mission-driven team of technologists, scientists, designers, product developers, marketers, and more, working to shape the future of the global financial system. If that inspires you, come join us!
Final Thoughts
In closing, Stellar (XLM) presents a novel, low-cost way of making payments internationally, with an emphasis on speed and inclusion.
Its core functions are secured and scalable courtesy of how they are integrated with the Stellar Consensus Protocol and the organization’s decentralized nature which makes the technology a viable choice for international financial institutions.
With transformational partnerships in place and plans targeting the intersection of conventional and digital finance, Stellar is primed for expansion. As a cryptocurrency, it can serve individuals and businesses looking for ways to transfer money quickly and cheaply while offering unique opportunities.
