Stellar (XLM) is a peer-to-peer (P2P) decentralized network created in 2014 by The Stellar Development Foundation or Stellar.org. The network officially launched in 2015 with the purpose of connecting the world's financial systems and ensuring a protocol for payment providers and financial institutions. The platform is designed to move financial resources swiftly and reliably at minimal cost. Stellar links people, banks, payment processors and allows users to create, send and trade multiple types of crypto.
The basis of the network is its native digital currency - XLM or Lumens. XLM acts as an intermediate currency for operations and is also used to pay transaction fees. How it works: the protocol converts money in a few seconds, first into XLM, and then into the requested currency.
The Stellar payment protocol is based on distributed ledger technology -- an open-source development, community-owned and distributed by community. The crypto asset of the Stellar platform helps with cross-border transactions, overcoming the problems of high fees and slow procedures. XLM is more focused on assisting individuals transfer money than they are with institutions. Thus, Stellar offers access to financial systems, and people can send money at low cost and promptly around the world.
Moreover, Stellar serves as a decentralized exchange and marketplace, with a built-in order book that tracks ownership of Stellar assets. Platform users can manage buy/sell orders, as well as select and set their preferred assets in settlements. XLM is a built-in coin that helps reduce transaction fees.
The network maintains a high level of security. XLM holders must have at least one token in order to remain active on the network. This nuance performs a global goal - the execution of network transactions efficiently and with minimal time costs. Plus, Lumens offers protection against flood attacks by making microtransactions too expensive for hackers with no chance of profit, which keeps Stellar Network safe from serious threats.
The target audience of Stellar is the inhabitants of developing countries, ordinary users who are provided access to the global economy through fast, simple and inexpensive transactions. Stellar Network makes extensive use of Lumens to produce live convection as well as to send cash in multiple currencies; currency is sent from one peer, and the recipient can receive the amount in another currency. This feature is beneficial when a transaction is made between currencies without widely traded pairs.
Support for multi-currency transactions is another competitive advantage of Stellar, and the ability for cross-currency transactions has only enhanced processes with foreign operations. Moreover, stable speed and low transaction costs are a privilege that users receive.
This functionality is powered by a development called Anchors (a bridge between different currencies and the network), which simplifies the exchange within the network and helps speed up the whole process.
In summary, the benefits of Stellar (XLM) include:
As an expert in blockchain technology and decentralized networks, I bring a wealth of knowledge in the field of cryptocurrencies, particularly focusing on platforms like Stellar (XLM). My expertise is built upon a deep understanding of the underlying technologies, the principles of distributed ledger systems, and the practical applications of cryptocurrencies in the financial sector. I have closely followed the developments in the space, keeping abreast of advancements, innovations, and real-world implementations.
Now, diving into the article on Stellar (XLM), let's break down the key concepts and elaborate on the information provided:
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Stellar Development Foundation and Network Launch (2014-2015):
- The Stellar network was created in 2014 by The Stellar Development Foundation (Stellar.org).
- The network officially launched in 2015 with the primary objective of connecting global financial systems.
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Purpose and Design of Stellar Network:
- Stellar aims to facilitate swift and reliable movement of financial resources at minimal cost.
- It serves as a peer-to-peer (P2P) decentralized network connecting people, banks, and payment processors.
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Stellar's Native Digital Currency - XLM or Lumens:
- XLM acts as an intermediate currency for operations and is used to pay transaction fees.
- The protocol converts money into XLM and then into the requested currency, enabling quick transactions.
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Stellar Payment Protocol and Distributed Ledger Technology:
- Stellar's payment protocol is based on distributed ledger technology, emphasizing community ownership and open-source development.
- The platform assists with cross-border transactions, addressing issues of high fees and slow procedures.
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Decentralized Exchange and Marketplace:
- Stellar serves as a decentralized exchange with a built-in order book, allowing users to create, send, and trade multiple types of crypto.
- Users can manage buy/sell orders and set preferred assets in settlements.
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Security Features of Stellar Network:
- XLM holders must have at least one token to remain active on the network, contributing to efficient and timely network transactions.
- Lumens offer protection against flood attacks, making microtransactions expensive for hackers without a chance of profit.
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Target Audience and Use Cases:
- Stellar targets inhabitants of developing countries, providing them access to the global economy through fast, simple, and inexpensive transactions.
- The platform is more focused on assisting individuals in transferring money than institutions.
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Multi-Currency Transactions and Anchors:
- Stellar supports multi-currency transactions, enhancing processes for foreign operations.
- Anchors act as a bridge between different currencies and the network, facilitating exchange and speeding up transactions.
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Benefits of Stellar (XLM):
- Fast and inexpensive transactions.
- Access to the global economy for individuals in developing countries.
- Support for multi-currency transactions.
- Low transaction costs and stable speed.
- Security features against flood attacks.
In summary, Stellar (XLM) offers a robust and inclusive financial platform with a focus on efficient cross-border transactions, accessibility for individuals, and the benefits of a decentralized exchange and marketplace. The platform's native currency, XLM, plays a crucial role in facilitating these functionalities while maintaining security and low transaction costs.
