Stellar: Some Bits
Stellar is a distributed ledger technology based payment protocol. It facilitates quick, cross-border transactions between any pair of currencies. Stellar was launched in 2014, Stellar has always been cryptocurrency-adjacent, but the software aims to enhance rather than replace the existing financial system. The Stellar network is a fast, efficient way for end users to trade, save, and spend digital money. It is an open financial infrastructure for builders and institutions. Thanks to Stellar’s open source nature, anyone can access Stellar and the digital assets living on the network.
What are the Uses of Stellar and Use Cases of Stellar?
Stellar has gone leaps and bounds since its inception and has been used in diverse domains; The financial industry is changing because of Stellar, and the network’s currency ties could offer even a small business the strength and reach of a major bank. One of the key benefits of the stellar blockchain is that users can conduct transactions in any currency they choose, and the system will handle the currency conversion seamlessly.
Use Cases of Stellar:
- The Stellar XLM token is used as a bridge currency for cross-border payments and for paying transaction fees. Within the Stellar network, it can also be used to create digital assets. In addition, using Stellar’s integrated decentralised exchange, XLM serves as an intermediary between any newly created digital asset and any other digital asset on the Stellar network.
- The cryptocurrency Lumens from Stellar can be used to facilitate the process and offer liquidity.
- The foundation currency for trading various well-liked digital assets, as well as fiat currencies, on the Stellar Decentralized Exchange is lumens (XLM).
- The decentralised exchange (DEX) function built into the Stellar blockchain enables users to purchase and sell Stellar tokens and assets using the most liquid network currency, XLM. The SDEX stands out because anyone may design a user interface for it because Stellar is an open source network.
How is Stellar Different from Others?
- It provides services to people and companies that the present financial system fails to adequately serve. A decentralised network called Stellar employs the Stellar Consensus Protocol (SCP). SCP enables quick and affordable payments. Ripple does not involve mining, thus there is no need for hardware that consumes a lot of energy. Instead, it validates transactions by a consensus approach. This indicates that Stellar can efficiently and affordably handle a huge volume of transactions.
- However, Stellar differs from Ripple in that it can be used by anyone without access to banking. People in less developed nations, which lack the same banking systems as more economically developed nations, can use it. The network takes one’s fiat currency and converts it to XLM or Lumens, which convert to the recipient’s currency.
Who are the Competitors of Stellar
Competitors to Stellar based upon its use cases, differences and also reliability of blockchain and ease of use of blockchain. Some of the important competitors of Stellar are: