Stellar is a blockchain-based open-source network that connects banks, payment systems, and people to facilitate low-cost payments. The native cryptocurrency of this decentralized blockchain platform is known as Lumen (XLM). Cryptocurrency experts believe that there are many reasons which will help Stellar contribute to being a successful cryptocurrency. Don’t become impatient to know more Stellar platform. Read this article till the end to cure your inquisitiveness.
History of Stellar Blockchain platform
This open-source payment technology which has similarities to Ripple coins is founded by a non-profit organization called the Stellar development fund in 2015. It is found on the mission to create a financial platform where individuals across the globe and in the developing countries can access low fees, secure, and easily accessible financial services. The founder of this open-source payment technology is Jed McCaleb, the one who co-founded Ripple coins. Since then, it has made by over 4 million individual accounts and 450 millions of operations.
An overview of the Stellar Blockchain platform
As mentioned above, Stellar is an open-source network which creates, send, and trade digitally represented currencies. The main difference between other cryptocurrency platform and the Stellar network is that this payment technology will trade any kind of money in a transparent and efficient way while other platforms trade its native tokens only. Initially, both Ripple and Stellar payment technology used the same protocol. In 2014, a fork in Stellar’s protocol ended up in the creation of Stellar’s Consensus Protocol (SCP). Even though Ripple and Stellar platforms have many similarities, they have one major difference. That is, Ripple is a closed system while Stellar is an open-source network.
How does Stellar payment technology works?
To approve transactions, the Stellar’s consensus algorithm doesn’t rely on the entire miner network. Instead of this, to enable faster transactions Stellar platform uses the Federated Byzantine Agreement Algorithm. The FBA algorithm uses only a portion of the network instead of the entire portion to validate the transactions. This makes the transactions extremely faster and to process at least 1000 transactions per second. The Stellar platform became an open-source platform due to the fork that happened in 2014. Under the FBA algorithm, the transaction authentication process is confined to a selected set of trustworthy nodes only. Even though the transactions are approved once authenticated by all nodes that are part of this set. This process makes the Stellar payment process faster and cheaper. So it is an affordable and convenient platform for every common people. That’s why this payment technology becomes popular among startup companies.
Stellar is the first distributed ledger technology to obtain a Shariah-compliance certificate for payments and in 2018, it signed a deal for cross-border payments to more than 70 nations. Like any other cryptocurrencies, Stellar also works on the basis of Blockchain technology. Even though Bitcoin is the popular cryptocurrency and it garners the news headlines frequently, the Stellar platform is rising up with more impressive technologies.