Stellar is an open-supply network for payments and currencies. Stellar makes it feasible to create, send and exchange digital representations of all kinds of cash – dollars, pesos, bitcoin, pretty anything. It’s projected so all of the international’s financial systems can work collectively on a single network.
Stellar has no proprietor-everything owned by the public, and the software runs throughout a decentralized, open network and handles millions of transactions daily. Like Bitcoin and Ethereum, Stellar is based on blockchain to hold the community in sync. Still, the end-user experience is more like money – Stellar is much faster, inexpensive, and more energy-efficient than traditional blockchain-based systems.
Stellar was founded in 2014. Since then, processed extra than 2 billion million operations made by over 6.5 million accounts. Massive company organizations and companies as small as single-dev startups have selected Stellar to move cash and get admission to new markets.
Stellar has been cryptocurrency-adjacent, and the software has always intended to enhance rather than undermine the existing financial system. While, say, the Bitcoin network was made for exchanging only bitcoins, Stellar is a decentralized system that’s exceptional for trading any cash transparently and effectively.
Lumen is the native digital currency of the Stellar network. Lumen is required in small amounts for initializing accounts and making transactions, but beyond those requirements, Stellar doesn’t privilege any specific currency.
It’s specifically created to make conventional money – the cash people have been spending and saving for hundreds of years—more valuable and reachable.
As an example, here’s what you can do with Stellar. You may create a virtual representation of a U.S. dollar – on Stellar, you would name this a “dollar token” – and you can inform the world that each time a person deposits a traditional dollar with you, you’ll issue them one of your new tokens. When a person brings that “dollar token” back to you, you promise to redeem it back for one of the dollars in that deposit account. You set up a 1:1 relationship between your virtual token and a traditional dollar. Each of your tokens out in the global is backed by an equivalent deposit. So while people keep the tokens, they can deal with them similar to traditional cash because they realize that they’re exchangeable for classic money.