Stellar (XLM)
Stellar is an open-source, decentralized payment protocol that enables fast, cross-border transactions between any pair of currencies. Created in 2014, Stellar aims to connect financial institutions, payment systems, and individuals.
Key Characteristics
- Speed: Transactions settle in 3-5 seconds
- Low Cost: Minimal transaction fees (0.00001 XLM)
- Energy Efficient: Uses Stellar Consensus Protocol instead of mining
- Asset Tokenization: Supports creation of tokens representing any asset
- Built-in DEX: Native decentralized exchange for any Stellar asset
Stellar focuses on financial inclusion and providing infrastructure for existing financial systems rather than replacing them.
Core Technology
- Stellar Consensus Protocol (SCP): Novel consensus mechanism based on Federated Byzantine Agreement
- Anchors: Trusted entities that hold deposits and issue credits on the network
- Horizon API: RESTful API for interacting with the Stellar network
- Path Payments: Multi-currency transactions that automatically convert currencies
- Stellar Core: The backbone of the Stellar network that maintains a local copy of the ledger
Key Features
- Multi-Currency Support: Handles any type of currency or asset
- Scalability: Processes 1000+ transactions per second
- Smart Contracts: Simple, deterministic smart contract functionality
- Compliance Protocol: Built-in KYC/AML compliance capabilities
- Open Participation: Anyone can become a validator
Market Position
Stellar has established itself as a blockchain solution for financial institutions and fintech companies, with particular focus on remittances, banking the unbanked, and cross-border payments.
Major Developments
- IBM World Wire: Partnership with IBM for cross-border payment network (discontinued)
- MoneyGram Integration: Strategic partnership with MoneyGram for stablecoin-based remittances
- Anchor Platform: Tools for financial institutions to easily connect to Stellar
- Soroban: New smart contracts platform launched in 2023
Challenges
- Adoption: Competition from both traditional systems and other blockchains
- Centralization Concerns: Significant XLM holdings by Stellar Development Foundation
- Public Awareness: Lower public profile compared to Bitcoin and Ethereum
- Regulatory Uncertainty: Evolving global regulations for payment networks
Advanced
Example Addresses
- Public Address:
GDZKZKRHXPKFHTDCYJ3RQBXFNMG5ZTVHBZVIOHEWLDUWXKQSIRPEX5H6 - Federation Address:
username*domain.com(human-readable addresses) - Memo-based Address: Used when sending to exchanges (address + memo)
Block Explorers
Key People
- Jed McCaleb: Co-founder of Stellar and former CTO, previously co-founded Ripple and created Mt. Gox
- Denelle Dixon: CEO of the Stellar Development Foundation
- David Mazières: Chief Scientist who created the Stellar Consensus Protocol
- Joyce Kim: Co-founder and former Executive Director of Stellar
- Stellar Development Foundation: Non-profit organization supporting the development and growth of the Stellar network