Stellar is a decentralised, open-source network designed for cross-border payments and asset transfers. It utilises distributed ledger technology to facilitate fast, low-cost transactions.
Stellar operates on a distributed ledger known as the Stellar blockchain. Transactions are recorded and confirmed by a network of nodes using the Stellar Consensus Protocol (SCP), which is based on the Federated Byzantine Agreement (FBA) algorithm. This mechanism enables fast and secure transactions without the need for traditional mining processes.
Stellar has a wide range of potential use cases, including:
Stellar was co-founded by Jed McCaleb and Joyce Kim, launching on July 31, 2014. It started as a fork of the Ripple codebase and was developed to create a decentralised platform for financial transactions. Significant events in Stellar's history include partnerships with major organisations like Deloitte and the introduction of its native cryptocurrency, Stellar lumens (XLM), in 2015. In 2019, the Stellar Development Foundation reduced the total supply of lumens by burning half of the tokens, which impacted its market dynamics. Over the years, Stellar has evolved to include a decentralised exchange and achieved regulatory compliance, notably obtaining a Shariah-compliance certificate.