Introduction to Stellar
What problem does Stellar solve?
Stellar (XLM) is a public distributed payment system that belongs to the Stellar Development Foundation.
The coin has retained its position among the top ten most popular cryptocurrencies in the
world. The interesting thing about the technology is that while other altcoins follow the prices
of Bitcoin and Ethereum, Stellar (XLM) often shows signs of growth.
Stellar’s main vision is
to establish a decentralized banking system. It seeks to make its coin Stellar Lumens a
global currency that would be globally recognized and accepted which will result in its being
used for daily transactions. A user can pay a bank some fiat currency (e.g. USD,
Euro …) and the receiver could collect the payment in another fiat currency, in the
same way, Stellar Lumen will be used as an intermediate technology (Mazieres, 2019). The transaction
will take much lesser time and cut down heavily on the transaction charges as compared
to conventional banking (Applicature, 2018).
Since the network aims to provide freedom in terms of currency dealing, it is essential that it should have access to huge amounts of different fiat currency reserves. This would be achieved by working hand in hand with banks. However, banks are not showing interest in adopting the technology as they would lose a major portion of their revenue stream, should they partner with the technology.
The Modern Investor: What Is Stellar Lumens XLM? The Basics - For Beginners
What is Stellar
What does the cryptocurrency Stellar actually do?
The actual product the Stellar network aims to offer is to serve as a distributed
platform where a user could send a currency of choice and the receiver could receive
the payment in a currency of choice. The platform has not been built yet, however,
it is a work in progress.
The main project is facing some hurdles in
its implementation. The foundation has shifted its focus to another project to create a platform
where developers could develop their own DApps. There is a chance that Stellar (XLM) might
be successful in delivering the project.
Who is behind Stellar
What team is working to make Stellar successful?
The founding figures of the Stellar network are Jed McCaleb and Joyce Kim. McCaleb is a well-known expert in his field. He founded eDonkey2000, a file-sharing program. However, the company was put down soon after its release and the company had to pay 30 Billion Dollars in compensation for copyright violations. McCaleb created another website known as MtGox which he later sold, while still holding shares of the platform (McCormack, 2019). He co-founded Ripple in 2012/2013 and left the team in 2014 to create his own cryptocurrency Stellar Lumen off a Ripple fork. His ethical values might have not always been good and he could be a possible risk factor.
The main lead of the Stellar Lumen is Jed McCaleb who is an experienced individual with a vast amount of knowledge and business skills. There are around 50 active contributors who tirelessly work to develop and enhance the Stellar network and its products.