What is Stellar?

Stellar is an open-source, decentralized blockchain network designed to facilitate the transfer of money and other assets between people and institutions across the world. It was created to enable fast and efficient cross-border transactions, with low fees and without the need for traditional financial intermediaries. The network's native cryptocurrency is called the lumen (XLM), which serves as a digital asset for denominating network requirements.

For what is Stellar used?

Stellar is used for a wide range of use cases, including remittances, micropayments, mobile money, and mobile banking. Its unique features, such as its ability to facilitate cross-border transactions in multiple currencies, make it an attractive option for individuals and institutions looking to transfer funds across borders quickly and efficiently. Additionally, Stellar can support the creation of new assets, including digital currencies, security tokens, and even real-world assets such as commodities or real estate.

What is Lumen (XLM)

The lumen (XLM) serves a special role in the Stellar network, as every account must hold a small number of lumens at all times to meet minimum balance requirements and pay transaction fees. This requirement was introduced to deter bad or frivolous actors from spamming the network with nonsense transactions. Additionally, because everyone on the network needs lumens, it can act as a medium of exchange between otherwise illiquid assets, making it easier to move money between users.

Who created it?

Stellar was created by Jed McCaleb, co-founder of Ripple, and Joyce Kim in 2014. The project began as a fork of the Ripple protocol but was later rewritten from scratch to address some of the perceived limitations of the Ripple system. The Stellar Development Foundation (SDF), a non-profit organization based in Delaware, is responsible for developing and promoting the Stellar network.