Tag: Stellar (XLM)

Stellar (XLM) is an open-source blockchain network designed for digital currency payment and trading. It was created in 2014 by Jed McCaleb, the founder of Mt. Gox and co-founder of Ripple, and his partner Joyce Kim. Initially called the “Secret Bitcoin Project,” it was officially launched in 2015.

Like the Internet-connected computers for the free flow of information, Stellar seeks to do the same for money. Stellar operates as a decentralised and open network to create a global financial infrastructure by connecting banks, payment systems, and individuals, enabling fast and secure cross-border transfers. The Stellar Development Foundation (SDF), a nonprofit organization, supports the network.

XLM, or Lumens, powers transactions on the Stellar network and facilitates faster, cheaper cross-border payments than traditional financial systems. For instance, a Japanese bank could use Stellar to send money to a bank in Mexico. Stellar would automatically convert yen to XLM, send the payment via blockchain, and then convert XLM back to pesos at the current exchange rate.

Stellar is designed to complement existing assets and cryptocurrencies. Users can create digital representations of any asset as a Stellar token, which can be transacted on the blockchain and redeemed for the corresponding base asset. For example, stablecoins pegged to the U.S. dollar, like USDC, can be issued on the Stellar network.

As a decentralized financial network, no single entity can control transactions or prevent someone from joining or leaving Stellar. Even if some servers are turned off or fail, the network can still operate successfully.