What is Stellar (XLM): Complete Guide for Beginners and Investors
Stellar is an open-source decentralized payment protocol enabling fast, cross-border transactions between any currencies, developed in 2014 by Jed McCaleb and Joyce Kim. The mission of Stellar is to help financial systems work together on a single network.
Stellar was launched in 2014 by Jed McCaleb and Joyce Kim, focusing on facilitating cross-currency transactions by connecting banks, payment systems, and individuals. Stellar formed partnerships with organizations like IBM and Deloitte to expand its services. The network's native currency, Lumens (XLM), plays a key role in allowing users to carry out currency transactions efficiently.
TECHNOLOGY
Stellar operates using the Stellar Consensus Protocol (SCP), which allows transactions to be confirmed in mere seconds. Unlike typical proof-of-work blockchains, Stellar uses a consensus mechanism that is far less resource-intensive, promoting quick and low-cost transactions across the globe.
USE CASES
Stellar is predominantly used for international money transfers and micropayments due to its capacity for fast and affordable transactions. Key use cases include: Facilitating cross-border payments between different currencies; Microtransactions for small, everyday payments; Tokenization of real-world currencies and assets on the blockchain.
FORECAST
Stellar holds potential for significant growth, especially as demand for fast and affordable cross-border payment solutions rises. Its partnerships with financial institutions contribute to its stability and reliability. However, its price remains sensitive to regulatory changes and market dynamics.
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