Stellar wallet

What is Stellar

History

Stellar was officially launched in July 2014 as a result of a fork from the Ripple protocol, but with significant differences in its goals and structure. The project was initially funded through donations and by Stripe, a popular payment processor, which contributed $3 million in seed funding. Over the years, Stellar has positioned itself as a strong player in the realm of cross-border payments, particularly in emerging markets. The Stellar Development Foundation (SDF), a non-profit organization, oversees the network's development and is dedicated to promoting global financial inclusion.

Creators and Developers

The Stellar network was created by Jed McCaleb, who had previously founded eDonkey2000 and co-founded Ripple. His dissatisfaction with Ripple's direction led him to establish Stellar as a more decentralized alternative. Joyce Kim, an attorney and former venture capitalist, co-founded Stellar with McCaleb. The Stellar Development Foundation, a key entity in the ecosystem, continues to guide the project's growth, with a focus on fostering partnerships, expanding network functionality, and promoting adoption across various sectors.

Technology

Stellar operates on its own blockchain platform, which is based on a consensus protocol known as the Stellar Consensus Protocol (SCP). Unlike Proof of Work (PoW) or Proof of Stake (PoS) mechanisms, SCP relies on a federated Byzantine agreement (FBA) model, which enables faster and more energy-efficient consensus. This protocol allows nodes to agree on transaction validity without needing to trust a central authority. One of Stellar's unique features is its built-in decentralized exchange (DEX), which allows users to trade assets directly on the blockchain.

Emission and Distribution

Stellar's native cryptocurrency, Lumens (XLM), plays a crucial role in the network's operations. Initially, 100 billion Lumens were created, with an inflation mechanism that added 1% new Lumens annually. However, in 2019, the Stellar Development Foundation made a significant decision to reduce the total supply of Lumens to 50 billion and eliminate the inflation mechanism. Lumens are used to facilitate transactions on the Stellar network and to prevent spam by requiring a small amount to be included with each transaction.

Networks and Support

Stellar's network is widely supported across various platforms and is compatible with multiple wallets, exchanges, and financial institutions. It operates independently but can interact with other blockchains and traditional financial systems through anchors—trusted entities that issue assets on the Stellar network. Stellar has also been involved in several cross-chain initiatives, enabling the transfer of assets between different blockchains.

Applications and Use Cases

Stellar is primarily used for cross-border payments and remittances, offering a faster and more cost-effective alternative to traditional banking systems. The network's ability to issue digital representations of any currency makes it a powerful tool for creating stablecoins, tokenizing assets, and conducting micropayments. Notable use cases include partnerships with financial institutions and fintech companies, such as IBM's World Wire, which leverages Stellar to enable instant, low-cost global payments.

Popularity and Market Capitalization

Stellar has consistently ranked among the top cryptocurrencies by market capitalization, reflecting its broad adoption and the strong community support behind it. Although its market position has fluctuated, Stellar's focus on real-world applications and its growing network of partners have helped maintain its relevance in the rapidly evolving cryptocurrency landscape.

Partnerships and Integrations

Stellar has established partnerships with a variety of companies and organizations, including IBM, which uses the Stellar network for its blockchain-based payment system, World Wire. Other significant collaborations include partnerships with financial institutions, payment processors, and fintech companies, which help expand the use of Stellar's technology for cross-border transactions and digital asset issuance.

Community and Media

Stellar has a vibrant and active community that contributes to the project's development, provides support to users, and promotes adoption through various channels. The Stellar Development Foundation regularly engages with the community through forums, social media, and developer events. Stellar has been featured in numerous media outlets and reports, particularly in discussions about blockchain's potential to revolutionize the global financial system.