Stellar (XLM)

What is Stellar (XLM)?

Stellar (XLM) is an open-source, distributed payment protocol created by Jed McCaleb in 2014. It is a decentralized platform used for the buying and selling of digital assets such as cryptocurrency, stocks, bonds, and commodities. Stellar is designed to facilitate low-cost, cross-border payments between any pair of currencies. The Stellar network also provides users with an opportunity to issue their own asset tokens that can be used to represent any form of value, such as loyalty points or IOUs.

How Does Stellar (XLM) Work?

Stellar (XLM) works on a decentralized, distributed ledger technology (DLT) called the Stellar Consensus Protocol (SCP). SCP is a consensus algorithm that allows distributed nodes on the network to reach agreement on the status of a transaction. This consensus algorithm is based on a modified version of the Federated Byzantine Agreement (FBA) algorithm, which requires each node to agree on the validity of a transaction before it is approved and added to the blockchain.

The Stellar network also uses the Lumen (XLM) as its native currency. Lumen is used to pay transaction fees and to facilitate payments between different currencies. Each user on the network must hold a minimum balance of Lumen in order to transact on the network.

What are the Benefits of Using Stellar (XLM)?

The main benefit of using Stellar (XLM) is its low cost and fast transaction times. Transactions are usually confirmed within a few seconds, compared to Bitcoin’s 10-minute average block time. This makes it ideal for remittances, micropayments, and other time-sensitive transactions.

Furthermore, Stellar (XLM) is open-source, meaning that anyone can build applications and services on top of the network. This opens up a wide range of potential use cases, such as creating a decentralized exchange, launching a stablecoin, and more.

Finally, Stellar (XLM) is becoming increasingly popular as a payment network. Many companies, including IBM, have adopted the platform to facilitate payments.


In conclusion, Stellar (XLM) is a powerful platform for digital asset transfers and payments. It offers fast transaction times and low costs, making it ideal for remittances and micropayments. Additionally, Stellar is an open-source platform that allows developers to build applications and services on top of the network. Finally, the platform is becoming increasingly popular as a payment network, with many companies adopting it for their transactions.