About XLM?
What is Stellar (XLM)?
Stellar (XLM) is a decentralized, open-source blockchain network designed to facilitate fast and low-cost cross-border payments. Its native token, Lumens (XLM), plays a key role in transactions, acting as a bridge for currency exchanges and helping to minimize transaction fees. Stellar aims to make global financial systems more accessible and efficient by enabling the transfer of any type of currency, whether fiat or cryptocurrency.
How does Stellar (XLM) work?
Stellar operates on a consensus protocol known as the Stellar Consensus Protocol (SCP), which is different from traditional proof-of-work or proof-of-stake mechanisms. This allows the network to reach consensus quickly and efficiently, processing thousands of transactions per second at a low cost. XLM is used to facilitate these transactions, helping to convert and transfer money between currencies seamlessly. Stellar’s architecture is designed to connect financial institutions, making it easier for individuals and businesses to send and receive money internationally.
What are the potential use cases for Stellar (XLM)?
Stellar is primarily used for cross-border payments and remittances, making it easier and cheaper for individuals to send money across borders. It’s also utilized for tokenizing assets and enabling microtransactions, which are critical for developing economies. Financial institutions and payment services can leverage Stellar for secure and fast transaction processing, while developers can build decentralized applications (dApps) on its platform to create innovative financial solutions.
What is the history of Stellar (XLM)?
Stellar was founded in 2014 by Jed McCaleb, a co-founder of Ripple, and Joyce Kim, with the goal of creating a more inclusive global financial system. Over the years, Stellar has formed partnerships with various companies and organizations, including IBM, to enhance its cross-border payment capabilities. Its mission has remained focused on improving financial access, especially for those in underserved markets.
