Stellar is a decentralized blockchain platform designed to facilitate cross-border payments and international money transfers. Founded in 2014 by Jed McCaleb and Joyce Kim, its mission is to create an efficient, low-cost financial network connecting global institutions, businesses, and individuals.
Key Features of Stellar (XLM)
- Decentralized Architecture: Operates without central authority, enabling peer-to-peer transactions.
- Fast & Low-Cost Transfers: Processes transactions in 3–5 seconds with fees as low as 0.00001 XLM.
- Multi-Currency Support: Enables exchanges between traditional fiat currencies and digital assets.
Lumen (XLM): Native cryptocurrency serving as:
- Bridge currency for cross-asset exchanges
- Transaction fee payment method
- Spam-prevention tool (minimum 0.5 XLM account balance required)
Stellar's Evolution: 2014–Present
| Year | Milestone |
|---|---|
| 2014 | Launched as fork of Ripple protocol |
| 2015 | Rebranded token to "Lumen" (XLM) |
| 2017 | Strategic partnership with IBM for payment solutions |
| 2019 | SDF burned 55 billion XLM (~50% of supply) |
| 2020 | Shift toward enterprise/institutional adoption |
👉 Discover how Stellar compares to other payment-focused blockchains
Stellar Development Foundation (SDF)
This non-profit organization oversees:
- Protocol upgrades
- Ecosystem grants
- Strategic partnerships
- Regulatory compliance
XLM Use Cases
- Remittances: Reduce costs for migrant workers sending money abroad.
- Microtransactions: Enable small-value payments for content creators and IoT devices.
- Tokenization: Issue stablecoins or asset-backed tokens on the Stellar network.
- Financial Inclusion: Provide banking alternatives in underdeveloped regions.
FAQs About Stellar (XLM)
Q: How does Stellar differ from Ripple (XRP)?
A: While both focus on payments, Stellar targets individuals and small transactions, whereas Ripple serves institutional clients.
Q: Is XLM a good investment?
A: As utility token, XLM's value depends on network adoption rather than speculative trading. Always conduct your own research.
👉 Learn about Stellar's latest developments in 2024
Q: How many XLM coins exist?
A: After the 2019 burn, maximum supply is capped at 50 billion XLM (with ~28 billion currently circulating).
Q: Where can I buy XLM?
A: Major exchanges like OKX, Kraken, and Coinbase support XLM trading pairs.
Future Outlook
Stellar continues to evolve with:
- Smart contract capabilities (Soroban)
- CBDC experimentation
- Enhanced enterprise tooling
- Sustainable design (low-energy consensus)
The platform's focus on real-world financial solutions positions it uniquely among payment-focused blockchains.