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What Is Stellar: Complete Guide For Beginners

Stellar is defined as a protocol connecting banks, payments systems, and people. A digital currency can be moved quickly, reliably, and at almost no cost using Stellar. The value of Stellar is growing day-by-day due to its innovative features. Stellar has expanded enormously. It has gotten a lot of attention since its inception. 

Mentioned below are a few points about Stellar which will be helpful for beginners:

  • What Is Stellar?

Stellar is defined as a decentralized and open-source protocol used to transfer digital currency into fiat currency. International transactions between any pair of currencies can be done through Stellar. It is written in languages like C++, Go, Java, JavaScript, Python, Ruby, etc. The year of the initial release of Stellar is 2014. A 501(c)3 nonprofit called Stellar Development Foundation supported the Stellar protocol.

  • History

The founder of a crypto exchange called Mt. Gox and the co-founder of Ripple is Jed McCaleb. 2014 is the year when the network system Stellar was launched by Jed McCaleb in collaboration with a former lawyer named Joyce Kim. A website called “Secret Bitcoin Project” was formed by Jed McCaleb before the official launch. Alpha testers were sought. The 501(c)3 nonprofit Stellar Development Foundation was created with the support of the Chief Executive Officer (CEO) of a software company called Stripe Patrick Collison. The official launch of the project was done in July 2014. The software company Stripe provided $3 Million to Stellar in a Seed funding round. The Stellar network and the Stellar protocol along with the cryptocurrency Stellar were released. The Stellar network was having 100 billion Stellars at its launch. The name of the cryptocurrency Stellar was kept as Lumens or XLM later on. Stellar was having almost 3 Million registered user accounts by January 2015. 2015 is the year when an upgraded protocol was released by the non-profit Stellar Development Foundation with a new consensus algorithm on April.

Jed McCaleb is known as an American programmer and entrepreneur. 1975 is the year when he was born in Little Rock, Arkansas, the United States. He studied at a public research university called University of California, Berkeley.

  • Stellar Consensus Protocols (SCP)

The new consensus algorithm uses a consensus protocol called Stellar Consensus Protocol (SCP). SCP is defined as construction for Federated Byzantine Agreement (FBA). A professor of Computer Science at Standford University named David Mazières created the consensus protocol SCP. SCP is used to address decentralization, speed, energy consumption, liveness, and security-related problems. Liveness means a system should work continuously despite failures and attacks. 

  • Does Stellar Have Blockchain?

Yes, Stellar has its own blockchain. 

  • Stellar Network

The stellar network is distributed in nature. The distributed Stellar network is a collection of Stellar Cores. Each node has to choose its trusted nodes or verification nodes for the verification of a transaction, forming a Stellar Core. When the Stellar Core verifies the transaction, then the transaction will be added to the existing blockchain. 

  • Can Stellar Be Mined?

Stellar can’t be mined because it doesn’t use Proof-of-work (PoW). It uses a consensus protocol called Stellar Consensus Protocols (SCP). 100 billion Stellars were already generated at its initial stage. 

  • Where To Sell

Coinsquare is a crypto exchange where you can sell your XLM. It is headquartered in Toronto, Ontario, Canada. It was founded in the year 2014. The CEO and founder of Coinsquare are Cole Diamond. It also supports cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple’s XRP, Bitcoin Cash (BCH), Litecoin (LTC), Dash (DASH), Dogecoin ((DOGE), and Bitcoin SV (BSV). It supports fiat currencies like Canadian dollar (CAD), US Dollar (USD), Euro (EUR), Pound sterling (GBP), Swiss franc (CHF). It supports payment options like Bank transfer, Credit Card, Flexepin, Interac e-Transfer, Bank transfer (SEPA), and Wire transfer.

  • Stellar Lumens Exchange

A Stellar Lumens (XLM) exchange is an online XLM business. Coinbase, Bitit, Poloniex, Bitbns, and Kraken are cryptocurrency exchanges where customers can buy and sell XLM. The customers can trade XLM for other cryptocurrencies or fiat currencies like USD, EUR, Yen.

To learn more about cryptocurrency exchanges, click on the link: Cryptocurrency Exchange: Complete Guide For Beginners-2

  • Stellar Lumens (XLM) Wallets

Users can use Stellar Lumens (XLM) wallets to store and secure their funds.

Hardware: Ledger Nano X Wallet and Ledger Nano S Wallet

Desktop: Atomic Wallet, Stellar Desktop Client, and Stargazer Wallet

Mobile: Stargazer Wallet and Lobstr Wallet

Web: Astral Wallet

  • Where To Use

Stellar is designed to support micropayment, mobile money, remittance, mobile branches, and services for the underbanked. A micropayment is as an online financial transaction which includes a small amount of money. Mobile money is defined as an e-wallet service available in many countries. Users can store, send, and receive money with the help of their smartphones. Remittance is referred to as a cross border transaction. It can be done from one country to another country with the help of wire transfer, mail, draft, or check. In mobile branches, customers are allowed to get an agency banking advantage. In services for the underbanked, new customers can be banked. Reaching into the pyramid base with low-cost accounts, loans, etc is possible with the services for the underbanked. 

  • Partners

An Indian private banking company called ICICI Bank Limited, an American multinational information technology company called IBM, and a multinational professional services network called Deloitte are the partners of Stellar. Enabling fast and smooth transactions at the national and the international levels is a purpose of the partnership between ICICI Bank Limited and Stellar. IBM had made a partnership with Stellar with the objective of using blockchain technology and cryptocurrency. Making cross border transactions is a purpose behind using the blockchain and the cryptocurrency. Deloitte had made a partnership with Stellar with the objective to build a Deloitte Digital Bank. Facilitating cross border payments with fast speeds and minimized rates is a purpose of the Deloitte Digital Bank.

  • Market

Stellar is one of the top 10 cryptocurrencies around the world. At the time of writing, the Stellar market cap $1,645,446,947. The price, volume, and circulating supply of Stellar are $0.084699, $226,102,166, and 19,426,963,566 XLM respectively. The Stellar market cap was around $15 million in January in the year 2015. 

Post Disclaimer

This article is for informational purposes only. The information is provided by What Is Stellar: Complete Guide For Beginners and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. The Blockchain Cafe does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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