Stellar is a payment protocol based on distributed ledger technology. Facilitates fast cross-border transactions between any currency pair. Stellar was launched in 2014, Stellar has always been adjacent to cryptocurrency, but the software aims to improve rather than replace the existing financial system.
The Stellar network is a quick and efficient way for end users to exchange, save and spend digital money. It is an open financial infrastructure for builders and institutions. Thanks to the open source nature of Stellar, anyone can access Stellar and the digital assets that live on the network.
Stellar Use Cases
Stellar has made great strides since its inception and has been used in several domains; The financial sector is changing because of Stellar, and the network’s currency ties could give even a small business the strength and reach of a large bank. One of the main advantages of the stellar blockchain is that users can conduct transactions in any currency they choose, and the system will handle currency conversion without any problems.
Stellar use cases:
- The Stellar XLM token is used as a bridge currency for cross-border payments and for the payment of transaction fees. Within the Stellar network, it can also be used to create digital assets. In addition, using Stellar’s built-in decentralized exchange, XLM acts as an intermediary between any newly created digital asset and any other digital asset on the Stellar network.
- Stellar’s Lumens cryptocurrency can be used to ease the process and offer liquidity.
- The base currency for trading various well-valued digital assets, as well as fiat currencies, on the decentralized exchange Stellar is lumens (XLM).
- The decentralized exchange feature (DEX) built into the Stellar blockchain allows users to buy and sell Stellar tokens and assets using the most liquid network currency, XLM. SDEX stands out because anyone can design a user interface for it because Stellar is an open source network.
- Some of the projects
How is Stellar different from others?
- It provides services to people and businesses that the current financial system fails to adequately serve. A decentralized network called Stellar employs the Stellar Consensus Protocol (SCP). SCP enables fast and convenient payments. Ripple doesn’t involve mining, so there’s no need for hardware that consumes a lot of energy. Instead, validate transactions with a consensual approach. This indicates that Stellar can efficiently and cost-effectively handle a huge volume of transactions.
- However, Stellar differs from Ripple in that it can be used by anyone who does not have access to banking operations. People in less developed nations, who do not have the same banking systems as more economically developed nations, can use it. The network takes its fiat currency and converts it into XLM or Lumens, which convert to the recipient’s currency.
Who are Stellar’s competitors?
Stellar’s competitors based on its use cases, differences and also the reliability of the blockchain and the ease of use of the blockchain. Some of Stellar’s main competitors are:
- Ethereum
- Hyperledger
- Blockstream
- (Bitcoin)
Bitcoin