Stellar XLM Price

What is Stellar (XLM)?

Stellar (XLM) is a decentralized, open-source blockchain platform designed to facilitate cross-border transactions and enable financial inclusion by connecting financial institutions, payment systems, and people. Founded in 2014, Stellar aims to reduce the cost and time associated with international money transfers, making it easier for users to send and receive funds globally. The native cryptocurrency of the Stellar network, Lumens (XLM), plays a crucial role in facilitating transactions and acting as a bridge currency for converting between different fiat currencies. As of 2024, Stellar has processed billions of transactions, showcasing its scalability and efficiency in handling cross-border payments.

Who are the Founders of Stellar?

Stellar was co-founded by Jed McCaleb and Joyce Kim. Jed McCaleb is a prominent figure in the cryptocurrency space, known for creating the infamous Mt. Gox exchange and later co-founding Ripple. Joyce Kim is an entrepreneur and lawyer with a strong background in technology and finance. Together, they launched Stellar to create a more inclusive financial system, allowing people in developing regions access to financial services.

How does Stellar Work?

Stellar operates on a unique consensus algorithm called the Stellar Consensus Protocol (SCP), which allows for quick and secure transaction validation. Unlike traditional mining processes, SCP relies on a network of trusted validators to reach consensus on the state of the ledger. This means that transactions can be confirmed in just a few seconds, making Stellar one of the fastest blockchain networks available.

The Stellar network uses a federated Byzantine agreement model, where validators are chosen based on trust and reputation. This design enhances security and efficiency while reducing the need for energy-intensive mining. Users can create accounts and hold Lumens (XLM), which are used to pay transaction fees and facilitate cross-border transactions. Stellar also allows the issuance of custom tokens, which can represent any asset, providing a flexible framework for various financial applications.

Top Use Cases of Stellar

Stellar has several notable use cases that demonstrate its versatility and capacity to drive financial innovation:

• Cross-Border Payments: Stellar significantly reduces the cost and time associated with international money transfers, making it ideal for remittances.
• Financial Inclusion: By providing access to financial services for unbanked populations, Stellar empowers individuals in developing countries.
• Tokenization of Assets: Stellar allows the creation of custom tokens, enabling businesses to tokenize real-world assets, such as real estate or stocks.
• Partnerships with Financial Institutions: Stellar collaborates with banks and payment providers, integrating its technology to streamline their operations and expand their services.
• Microtransactions: The low transaction fees on Stellar make it suitable for microtransactions, enabling new business models in areas like content monetization and IoT (Internet of Things).

How to Keep your Stellar Safe?

Securing your Stellar assets is crucial to protect against potential theft or loss. Here are some best practices to keep your XLM safe:

• Use Hardware Wallets: Store your XLM in a hardware wallet, which provides offline storage and protection from online threats.
• Enable Two-Factor Authentication (2FA): Always enable 2FA on your Stellar wallet and exchange accounts for an added layer of security.
• Regularly Update Software: Keep your wallet software and any related applications updated to the latest versions to protect against vulnerabilities.
• Be Cautious of Phishing: Avoid clicking on suspicious links and double-check URLs to prevent falling victim to phishing attacks.
• Backup Your Recovery Phrase: Write down and securely store your wallet's recovery phrase in case you need to restore your wallet.