Stellar is a decentralized payment protocol in the public domain that allows fast cross-border transfers between any pair of currencies. Like other cryptocurrencies, it operates on blockchain technology. It has its asset, a digital currency called Lumen (XLM). Lumen (XLM) powers the Stellar network and all its transactions, just as ether (ETH) powers the Ethereum network.
How does the Stellar blockchain work?
Transactions made on the Stellar network are added to a shared, distributed public registry, which is essentially a database accessible to anyone in the world. Stellar uses its unique mechanism to achieve fast and accurate transaction consensus.
What is the value of Stellar?
The value and utility of Stellar lie in the fact that it is a global exchange network capable of processing thousands of financial transactions per second between currencies and tokens. Exchanging cryptocurrencies and fiat currencies can be a long and costly process; Stellar makes the exchange quick and cheap. Lumen XLM, an asset to be maintained in the wallet, is used to pay transaction fees and maintain accounts on the Stellar (Stellar) network.
Stellar presents itself as "the future of banking" and aims to become a decentralized payment system for transferring money from country to country and from currency to currency. At the same time, Stellar does not plan to go to war with the existing centralized financial structures. It intends to peacefully revolutionize the world of payments by partnering with central banks and integrating cryptocurrencies into the current financial ecosystem.
However, one brutal war for the existence of Stellar must still be won.
To make central banks want to deal with it, it needs to become better than Ripple, in the image of which Stellar was once created by cloning and against which it still looks weaker.
To fight against Ripple and other competitors, Stellar uses technology - a blockchain that works and is already benefiting - and one very powerful ally: tech giant IBM. There are also populist slogans like "give away 95% of the tokens for free to people," as well as the title "nonprofit charity.
Both Stellar and Ripple are eager to occupy the place now occupied by the SWIFT payment system, which connects all world financial institutions with a single network. At first glance, Ripple seems to have a stronger blockchain, more influential allies, and much better funding, but the support of the broad user base that prefers Stellar may play a decisive role.
