What is Stellar?
Stellar is an open payment network created in 2014 to make cross-border transfers accessible to everyone, including unbanked people. XLM (lumen) is the network's native coin.
How it works
Transactions are confirmed by Stellar's consensus protocol, where nodes agree through intersecting trust groups, without mining. A transfer takes several seconds and costs fractions of a cent. The network allows issuing tokens tied to currencies and assets, and a built-in decentralized exchange automatically finds exchange paths between them; XLM serves as a bridge currency and pays fees.
Pros and cons
- Pros: speed and low cost of transfers, energy efficiency, partnerships in payments and stablecoins.
- Cons: competition from similar networks, development dependence on a non-profit foundation, volatility.