History of Stellar
Founded in July 2014 by Jed McCaleb (co-founder of Ripple) and Joyce Kim, Stellar emerged as a decentralized payment platform. By early 2015, the nonprofit Stellar Development Foundation (SDF) was established with support from Stripe CEO Patrick Collison. Key milestones include:
- 2014: Mercado Bitcoin (Brazil) adopted Stellar’s network.
- 2015: Transitioned to a new consensus mechanism and launched Lightyear.io.
- 2018: Partnered with IBM for stablecoin projects and TransferTo for cross-border payments.
- 2017: XLM token peaked at $0.86 during the crypto bull run.
Stellar’s funding comes from organizations like BlackRock, Google, and Stripe, emphasizing its credibility in blockchain finance.
Overview of Stellar
Stellar is an open-source blockchain designed for:
- Decentralized finance (DeFi): Enables low-cost, cross-border transactions.
- Multi-currency support: Facilitates trades between fiat and crypto assets.
- Built-in DEX: Allows seamless token swaps via its decentralized exchange.
👉 Discover how Stellar compares to other blockchain networks
Stellar (XLM) Token Explained
XLM serves as Stellar’s native token with core utilities:
- Intermediary currency: Bridges transactions between disparate assets.
- Network fees: Pays for transaction costs (0.00001 XLM per op).
- Governance: Used in staking and voting mechanisms.
How Stellar Works
Stellar’s architecture relies on three pillars:
- Stellar Consensus Protocol (SCP): A federated Byzantine agreement ensuring fast, secure consensus.
- Ledger: Records all transactions and account balances.
- Anchors: Trusted entities that issue asset credits (e.g., stablecoins).
Key Features of Stellar
- Peer-to-peer payments: Send/receive funds globally via Stellar wallets.
- Cross-chain swaps: Convert assets between Stellar, Ethereum, or Bitcoin.
- Asset tokenization: Digitize real-world assets (e.g., stocks, commodities).
- DEX integration: Trade crypto assets directly on decentralized exchanges.
Investment Potential of XLM
Stellar’s unique value propositions include:
- Scalability: Processes 1,000+ TPS with low fees (~$0.000001).
- Adoption: Used by IBM, Flutterwave, and other enterprises.
- Price stability: XLM has maintained a steady valuation (~$0.10–$0.30 since 2020).
👉 Learn how to stake XLM for passive income
FAQs About Stellar (XLM)
1. Is Stellar better than Ripple?
While both focus on cross-border payments, Stellar is decentralized and community-driven, whereas Ripple caters to institutional clients.
2. How do I buy XLM tokens?
XLM is available on major exchanges like Binance, Coinbase, and OKX via BTC, ETH, or fiat pairs.
3. What’s the total supply of XLM?
Stellar’s max supply is 50 billion XLM, with ~28 billion in circulation (2023).
4. Can XLM reach $1?
Market conditions, adoption rates, and crypto trends will determine if XLM achieves this milestone.
5. Is Stellar eco-friendly?
Yes, Stellar’s SCP consumes minimal energy compared to proof-of-work blockchains.
6. How does Stellar prevent spam?
Each transaction requires a tiny XLM fee, deterring malicious actors.
Stellar’s blend of speed, affordability, and institutional backing positions XLM as a compelling long-term investment. For deeper insights, explore our blockchain guides or track live XLM prices on crypto dashboards.
**Notes**:
- Anchors added per guidelines (2 instances of `👉 [anchor text](https://www.okx.com/join/BLOCKSTAR)`).