Stellar (XLM)

Stellar Cryptocurrency Definition, History & Future

What Is Stellar?

Stellar is a blockchain network developed by Stellar Development Foundation. The organization's currency, called the lumen, is traded under the symbol XLM on various cryptocurrency exchanges.

  • Lumens are designed to be used on the Stellar network to pay transaction and account initialization fees.
  • The network was created to connect banks, payment systems, and people to facilitate low-cost, cross-border, cross-asset financial transactions.

Stellar: An Open-Source Decentralized Protocol

Stellar, or Stellar Lumens, is an open-source, decentralized protocol for digital currency to fiat money low-cost transfers which allows cross-border transactions between any pair of currencies.

  • Initial release date: July 31, 2014
  • Developer: Jed McCaleb
  • License: Apache License 2.0

Stellar: Where Blockchain Meets the Real World

Stellar empowers builders to unlock human and economic potential. It combines a powerful, decentralized blockchain network with a global ecosystem of innovators to create opportunities as borderless as ideas. It offers the tools to make a difference in the real world through new digital asset products and services that enhance access to the global financial system.

If ideas are borderless, then opportunity should be too. The Stellar network is a place where all the hard work pays off. Where you can have a real impact on the problems unique to your world.

Stellar is a decentralized, public blockchain that gives developers the tools to create experiences that are more like cash than crypto. The network is faster, cheaper, and far more energy-efficient than most blockchain-based systems. It’s designed so Stellar’s ecosystem can make a real-world, lasting impact.

The Stellar ecosystem has thorough documentation, tooling, and community support to help your project get up and running quickly.

From large enterprises to single-dev startups, companies use the Stellar network to move money and access new markets. The Stellar anchor network supports over 180 countries and over 20 digital assets.

Stellar Blockchain: Overview, History, FAQ

The Stellar blockchain is one of the hundreds of networks that store and transmit cryptocurrencies. The stellar blockchain, with its lumens token, enables low-cost cross-border transactions and is faster, cheaper, and more energy-efficient than Bitcoin.

  • The main token of the Stellar blockchain is Stellar lumens or XLM.
  • The Stellar blockchain uses a consensus algorithm that is faster, cheaper, and more energy-efficient than that of Bitcoin.
  • The Stellar blockchain was launched in 2014 by Jed McCaleb, who also founded Mt. Gox and co-founded Ripple.
  • Critics say that the Stellar blockchain is centralized around the Stellar Development Foundation, which controls a large share of the lumens tokens.

Stellar Lumens

The Stellar network supports digital representations of any currency and has its own native token called the lumen (XLM). The lumen fulfills a special role in the network, ensuring the security and integrity of the ledger system.

The need for lumens arose out of the fundamental design of the Stellar network’s ledger system. Lumens serve as a nominal barrier or cost to prevent spam or misuse of the ledger, allowing the network to be a fast, efficient payments system.

To solve this, the Stellar network requires that each account hold a small number of lumens at all times. The full technical details can be found in the Stellar developer docs.

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Where to Buy Cryptocurrency Stellar


Binance is a centralized exchange where you can easily buy several cryptocurrencies, including Stellar. You can create a free account on the Binance website or app. Binance offers low fees and high security.


On Coinbase's centralized exchange, you can buy Stellar Lumens (XLM) in a few simple steps. First, create a Coinbase account and complete the sign-up process. Then, add a payment method such as a bank account or debit card. Afterward, start a trade and select Stellar Lumens from the list of assets. Enter the amount you want to buy, and Coinbase will automatically convert it into a corresponding amount of Stellar Lumens.


99Bitcoins provides a guide on how to buy Stellar Lumens (XLM) online. The process involves getting a Stellar Lumens (XLM) address, buying XLM using a credit card or wire transfer, and sending the XLM to your wallet.


Uphold allows you to buy Stellar Lumens (XLM) using credit or debit cards. Simply access the Transact feature on your Uphold portfolio screen, select "Credit or Debit cards" from the "From" option, and enter your card details along with your preferred currency.


eToro USA LLC offers cryptocurrency trading, including Stellar (XLM). On eToro, you can trade XLM and 79 other cryptos, with instant buy options and advanced trading features. When you sign up and buy $100 worth of crypto, you can also receive a $15 bonus.

Note: Always ensure you understand the risks associated with buying Stellar and familiarize yourself with its legal, regulatory, and tax status in your country before making a purchase.

Founders of Stellar

The founders of Stellar, an open-source, decentralized protocol for digital currency to fiat money low-cost transfers, are Jed McCaleb and Joyce Kim.

Jed McCaleb

Jed McCaleb is an American programmer, entrepreneur, and philanthropist.

He is the founder and CEO of aerospace startup Vast and a co-founder and the CTO of Stellar. Prior to co-founding Stellar, McCaleb founded and served as the CTO of the company Ripple until 2013.

McCaleb is also known for creating the Mt. Gox bitcoin exchange, and the peer-to-peer eDonkey and Overnet networks as well as the eDonkey2000 application.

As of March 2023, McCaleb is worth US$2.4 billion according to Forbes' Billionaires List.

Joyce Kim

Joyce Kim is a former lawyer who co-founded Stellar with Jed McCaleb. She played a key role in the official launch of the project in collaboration with Stripe CEO Patrick Collison.

Kim's contributions to Stellar's development have helped shape its mission of creating a more accessible world in the global financial system.

Together, McCaleb and Kim have laid the foundation for Stellar and its payment network, allowing for cross-border transactions and financial inclusion.

Roadmap and Future Plans of the Cryptocurrency Stellar

2023 Roadmap

The Stellar Development Foundation has laid out its roadmap for 2023.

Despite the challenges faced by the cryptocurrency industry and the world in general, Stellar has remained resilient and focused on its mission. The organization has responded to global issues by pioneering an aid product that can improve lives and organizations.

In the face of volatility, Stellar has stayed committed to innovation with a focus on utility, aiming to lead the way in scalable decentralized finance (DeFi). Additionally, Stellar has engaged and advocated with all stakeholders, including critics, to build trust and foster growth.

Strategic Roadmap for 2023

Stellar's strategic roadmap for 2023 centers around the concept of utility as the growth exponent.

The Stellar Development Foundation is committed to making innovation easy and scalable, and to focusing on utility to build trust. These building blocks will strengthen the Stellar network, ecosystem, and community.

By delivering utility and attracting more builders to the network, Stellar aims to achieve exponential growth and network effects. The ultimate goal is for the Stellar ecosystem to raise the bar by leveraging the network to deliver real-world solutions.

What is Stellar?

Stellar is a decentralized, open-source blockchain platform designed for conducting financial operations.

It was founded in 2014 by Jed McCaleb, one of the co-founders of Ripple. Stellar's main goal is to create an international platform for digital payments, bringing together individuals, banks, and payment systems.

The platform utilizes its own consensus protocol, the Stellar Consensus Protocol (SCP), to enable fast and reliable transaction processing.

Future Plans and Events

Stellar has several events and plans for the future. Some of the upcoming activities include:

  • AMA (Ask Me Anything) sessions
  • Protocol upgrades
  • Participation in conferences and meetups
  • Partnerships with organizations like Franklin Templeton
  • Webinars and community calls

These activities aim to engage with the community, foster partnerships, and drive further development and adoption of the Stellar network.

Introduction to Stellar

Stellar is a type of cryptocurrency, quite like Bitcoin, but with a distinguished purpose and functionality. At its essence, Stellar is an open-source, decentralized protocol for digital currency to fiat money transfers. It allows for fast, reliable and low-cost transfers of value across the globe, thus serving as a financial connective tissue in the world of digital finance.

Functionality of Stellar

Stellar operates on a unique technology called blockchain, which is essentially a decentralized collection or chain of blocks. Each block records some or all recent transactions. Notably, once the record is made, it’s unalterable. However, unlike Bitcoin's proof-of-work system that requires mining, Stellar uses a consensus algorithm called the Stellar Consensus Protocol (SCP). This makes it faster and more energy-efficient.

Any two people exchanging currency — say, dollars for euros — will use the Stellar network by finding a user that wants to make the same trade in reverse. They'll facilitate the exchange with each other using Stellar as an intermediary. This makes it extremely efficient as international transactions can happen within seconds.

This system gives Stellar a unique dual-structure. It allows users to own and transfer digital representations of all forms of money: dollars, pesos, bitcoin, pretty much anything. That's done on a highly secure, decentralized blockchain network. But it also uses traditional aspects of the mainstream banking system, with all transactions going through "anchors," entities that people trust to hold their deposits and issue credits.

The Purpose of Stellar

While most cryptocurrencies function primarily as digital assets, Stellar's main aim is to facilitate global monetary transactions. Stellar's mission is to make the money flow as easily as email, thus making the global economy accessible to every single person.

It envisions a world where, regardless of your bank status or geographical location, sending money is as easy as sending an email. Stellar can connect people from all around the world by increasing interoperability between diverse financial systems and currencies. Stellar is especially beneficial for underbanked regions of the world, where traditional banking services are out of reach for many people.

So, in essence, Stellar is not just a digital currency, but an entire open-source network that was created to allow money to be moved and stored. When it was first made in 2014, Stellar's founders aimed to open up economic participation for everyone, and this principle continues to guide its strategies today.

The Technology Behind Stellar

Firstly, Stellar is a decentralized network that allows for fast and economical cross-border transactions. It works distinctly from many other cryptocurrencies, thanks to the Stellar Consensus Protocol (SCP). This protocol forms the backbone of Stellar technology, setting it apart from many digital currencies.

Understanding the Stellar Consensus Protocol

SCP is a specific agreement system responsible for the secure and efficient operation of the Stellar network. Unlike Bitcoin or Ethereum, which rely on proof-of-work or proof-of-stake consensus mechanisms, Stellar uses SCP. It's this unique consensus mechanism that accelerates transaction speeds and minimizes costs.

In other consensus models, the network's transaction history is maintained by select individuals or institutions, entailing both time and cost. On the contrary, in Stellar's SCP, every participant helps maintain the network's history and approves transactions. This collective agreement or 'consensus' happens quickly, leading to an efficient system that can handle millions of transactions at minimal costs.

How Stellar Facilitates Fast, Low-cost Transactions

Stellar's transaction speed is underpinned by the SCP. Once everyone in the network agrees on the validity of the transaction, the transaction is added to the shared ledger. As there's no need for a lengthy proof-of-work process, transactions are processed swiftly. These speedy transactions save time and money, making Stellar an attractive choice for cross-border transactions.

Moreover, the Stellar network ensures low transaction costs due its non-reliance on mining - an energy-intensive and expensive process associated with many other cryptocurrencies. In Stellar's ecosystem, the cryptocurrency - known as Lumens (XLM) - is pre-mined. Pre-mining means all the Lumens were created when the network was originally formed, so there's zero need for additional mining.

These aspects insulate Stellar from the extensive energy consumption often linked to other cryptocurrencies, contributing to its reputation as an eco-friendly digital currency. Furthermore, the minuscule transaction fee (0.00001 XLM) primarily exists to prevent network spam instead of lining the pockets of miners. Combined, these result in faster, more economical operations.

Overall, the unique technical aspects of Stellar can be credited with its growing popularity in the expansive world of cryptocurrencies.

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How to Use Stellar

The essential key to using Stellar, or any cryptocurrency for that matter, is having a place to store it - known as a 'wallet'. Just like a real-world wallet, this piece of software stores your currency. Here's how you can set your Stellar Wallet:
  1. Download a wallet app or create an account on a wallet website that supports Stellar Lumens. Some options include the Stellar Desktop Client and the online wallet Lobstr.
  2. Install the application or sign-up on the wallet site.
  3. Once done, you'll be provided with what's known as 'public' and 'private' keys.
    Think of these keys as a complex email address (Public Key) and password (Private Key).
  4. It's critical to keep your keys safe. Your public key is what you share with others to receive funds, while your private key is needed for you to access your funds and must be kept secret.

Acquiring Stellar Lumens (XLM)

Now that you have a Stellar Wallet, it's time to fill it with Stellar Lumens (XLM), which is Stellar's native cryptocurrency token.
  1. Choose a cryptocurrency exchange that supports Stellar Lumens. Some popular ones include Binance, Kraken, and Coinbase.
  2. Make an account on your chosen exchange. This will usually involve providing some identification to meet regulatory requirements.
  3. Deposit cash or another cryptocurrency into your exchange account.
  4. Purchase Stellar Lumens (XLM) using the cash or cryptocurrency in your account.
  5. Withdraw the XLM to your Stellar wallet by providing your wallet's public key to the exchange. Always double-check this address to ensure it is correct.

Using Stellar Lumens

Now that your stellar wallet is filled with lumens, you can use your new cryptocurrency to make transactions. Here's how you do it:
  1. To send lumens, use your wallet app or website. You will need the receiver's public key (their wallet address).
  2. To receive lumens, give your public key to the sender.
  3. To check your balance, simply open your wallet app or website and look for your current balance.
Remember, Stellar's transactions are extraordinarily fast, often completing in just a few seconds. However, triple-check the wallet addresses because transactions on the blockchain are irreversible. Incorporating Stellar Lumens into your daily routine or investment portfolio can be a great way to participate in the rapidly evolving world of cryptocurrencies. That's your quick start into the Stellar network! It's a journey, and this is just the first step. Happy stargazing!

Stellar's Role in Cross-Border Payments

Stellar Lumens (XLM) has risen as one of the most talked about digital currencies in recent years, and it's no surprise why. A key use-case of Stellar Lumens is in the realm of international money transfers, and it possesses the potential to revolutionize this space in a big way.

Stellar Lumens as Fast and Cheap Solution

Typically, when people want to transfer money overseas, they encounter a series of challenges. Most importantly, international money transfers can be slow and expensive, especially when using traditional banking systems. Transactions often take three to five business days to process, and the fees can be quite high especially for larger amounts.

However, Stellar Lumens (XLM) has proposed an innovative solution to these issues. By using a digital currency like Stellar, the whole process can be significantly sped up while the costs dramatically reduced. Stellar's network of independent servers around the globe can authenticate transactions, typically within just a few seconds. This is a fraction of the time it takes to process traditional bank transfers, with the added advantage of the service being available 24/7, regardless of bank holidays or weekends.

How Does it Work?

Essentially, Stellar acts like a highway system for money. It uses a decentralized protocol to transfer fiat or digital currencies quickly and securely across borders. When a sender initiates a transaction, the system converts the original currency into Stellar Lumens. These Lumens are then sent across the globe in seconds and converted into the receiver’s currency. The transaction works no matter the currency pairs thanks to Stellar's built-in exchange which offers a seamless conversion between any type of money.

A Potential Game-Changer in Remittances Market

Large numbers of people across the world rely on remittances; they live in one country and work in another, sending money home to support their families. Traditional transfer methods eat into these hard-earned funds with expensive fees, and the delays in transactions can prove problematic.

Stellar Lumens can change this narrative by providing a faster, cheaper alternative in remittance transactions. Its network allows the transfer of funds across borders for a fraction of a cent, with confirmation times only lasting a few seconds. Embracing such a platform could mean more money reaches the families who depend on these remittances, in a quicker time frame.

While cryptocurrencies, in general, can sometimes intimidate the everyday user due to their complexity, Stellar Lumens aims to make their system user-friendly. It is already making waves in the financial world with its transformative technology, uniquely positioning itself as a potential game-changer in the realm of international money transfers.

The Potential Risks and Rewards of Investing in Stellar

When it comes to the digital currencies' marketplace, Stellar, officially known as Stellar Lumens symbolized as XLM, has carved out its niche. Stellar is a platform that connects banks, payment systems, and individuals, using blockchain technology. Before you decide to invest in Stellar, let's delve into both the potential benefits and risks.

Potential Gains from Investing in Stellar

The most significant advantage of investing in Stellar is its promising technology. By enabling quicker transactions across borders, it provides a problem-solving solution for banks and other financial institutions. The transaction cost on Stellar platform is much lower than with traditional payment systems, which makes Stellar Lumens an attractive prospect for users and institutions alike looking to transfer money globally.

Furthermore, Stellar has developed impressive partnerships with big players like IBM and Deloitte. These partnerships not only bring credibility but could potentially raise Stellar's value over time. Its consistent gain in market capitalization, i.e., the aggregate value of all Stellar tokens in circulation, implies an increasing investor trust in this cryptocurrency.

Finally, the platform’s built-in compliance measures, which require users to substantiate their identity, make it more likely for Stellar to be favored by regulators worldwide, thus potentially brightening its long-term prospects.

The Risks of Investing in Stellar

While the potential benefits stand attractive, investing in Stellar, like any other cryptocurrency, comes with a fair share of risks, primarily its price volatility. Cryptocurrencies are known for their drastic price changes in short time spans. A sudden surge can lead to considerable gains, while an abrupt drop can see investments shrink substantially.

Stellar's value is also impacted by market perception and technological adoption. If other faster, cheaper, better services spring up, Stellar's value may dwindle over time. Additionally, while its partners are impressive, most are currently using Stellar’s technology for pilot projects, meaning the results are not guaranteed.

An added risk is the regulatory uncertainty that all cryptocurrencies face. Even with Stellar's steps toward compliance, regulatory bodies around the world are still coming to terms with cryptocurrencies. Changes in legislation and regulatory rules could impact Stellar's status and, by extension, your investment.

An unforgettable risk of investing in cryptocurrencies, including Stellar, is the potential threat of online hacking. Digital currencies rely on digital wallets for storage, which have been successfully targeted by hackers in the past.

In conclusion, like any other investment, investing in Stellar presents both potential rewards and risks. The onus is upon you as an investor to perform due diligence and carefully weigh the pros and cons before diving in.

The Future of Stellar

Stellar, known in the crypto world by its ticker symbol XLM, is a popular digital currency that continues to draw attention due to its unique capabilities, such as enabling faster, low-cost international transactions. Like other cryptocurrencies, Stellar's growth potential and future are heavily influenced by various factors, ranging from practical utility to speculative interest. But what exactly might the future hold for Stellar?

The Growth Potential of Stellar

Stellar has quickly established itself as one of the leading cryptocurrencies, mainly due to its unique technology that offers a viable solution for instantaneous, low-cost global transactions. According to several industry experts, Stellar's potential for growth is significant.

There's a general consensus that as the demand for seamless, affordable, and fast money transfers increases globally, Stellar could become a sought-after solution, hence driving its potential value up. Furthermore, the ever-growing acceptance and legalization of cryptocurrencies worldwide could also play a fundamental role in Stellar's growth. Lastly, Stellar's partnerships with high-profile corporations, such as IBM, generate a positive outlook towards its future growth and adoption.

Upcoming Updates on Stellar

Like many cryptocurrency projects, Stellar undergoes regular upgrades to improve its functionality, security, and usability. The Stellar Development Foundation (SDF), the organization behind Stellar, maintains a roadmap detailing the project's ongoing improvements and goals.

According to the SDF's roadmap, some of the prominent features to look forward to include enhancing Stellar Core, which is the software responsible for the protocol's peer-to-peer interaction. They are also focusing on improving Horizon, the client-facing API server. Both of these improvements aim at increasing the platform's efficiency and transaction speed.

Beyond technical improvements, the SDF plans to continue forming partnerships and integrations that promote the adoption of Stellar. This includes working with financial institutions, tech companies, and other organizations. By partnering with these entities, Stellar proves its practical application in the real world, potentially increasing its value and demand.

While the future is never certain, especially in the dynamic world of cryptocurrencies, it's clear Stellar has a strategy and vision for the future. However, as always, it’s important to understand the risk associated with cryptocurrencies. Always do your own research before making investment decisions.