Stellar

Stellar is a decentralized, open-source blockchain network designed to facilitate fast, low-cost payments and asset transfers across borders. Launched in 2014 by Jed McCaleb and Joyce Kim, Stellar aims to connect financial institutions, payment systems, and individuals to make moving money as seamless as sending an email. The network’s native token, Lumens (XLM), helps facilitate transactions and maintain network security.

Stellar focuses on enabling interoperability between different currencies and financial systems. It allows users to issue, send, and trade digital representations of fiat currencies, commodities, or other assets while benefiting from quick settlements and minimal fees. This makes it especially valuable for remittances and microtransactions.

Stellar uses the Stellar Consensus Protocol (SCP), which allows decentralized, efficient agreement between network participants without relying on energy-intensive mining. Transactions on Stellar typically settle in 2-5 seconds, and fees are a fraction of a cent, making it practical for everyday use.

XLM, or Lumens, serves two main purposes: preventing spam on the network through small transaction fees, and acting as a bridge currency that facilitates multi-currency transactions between parties that do not share a common currency.

XLM can be stored in various wallets, including hardware wallets like Ledger, software wallets such as Lobstr and Solar Wallet, and exchanges that support Stellar. Users should secure their private keys and recovery phrases to protect their funds.