Posted on April 2, 2018
Stellar is an open-source, distributed payments infrastructure. It is a leapfrog technology that connects people, payment systems, and banks with a focus on the developing world. It lets you facilitate multi-currency and asset transactions quickly, reliably, and for a fraction of a penny by using a crypto-asset called Lumens (XLM) as a bridge.
Stellar also provides Dapps with a viable platform to create tokens based on its smart contract layer. It is a faster and cheaper network than Ethereum but it is not turing-complete so can be more restrictive. For example, Kin has recently announced it would be porting to Stellar’s network.
They developed their own protocol to verify transactions: the Stellar Concensus Protocol (SCP). This protocol is the only one who allows decentralized control, low latency, flexible trust (users have the freedom to trust any combination of parties they see fit) and asymptotic security.
In order to complete a transaction, a quorum (agreement) must be made by all parties. In the example below, the nodes 7 and 8 are programmed to not trust banks. The different quorum slices and quorum form automatically by respecting the different config file of nodes.
-The SCP allows nodes to choose who they want to trust.
-The confirmation time for a transaction is of only 5 sec on average.
-The transaction cost is 0,0001 XLM with a 10 XLM deposit refunded on completion.
-The programming is not Turing-complete which means there are less things you can do with the smart contracts.
-Sensibly centralized since nodes are businesses using Stellar and not individuals.
The Stellar network is a worldwide collection of Stellar Cores, each maintained by different people and organizations. The distributed nature of the network makes it reliable and safe.
All these Stellar Cores — the network of nodes — eventually agree on sets of transactions.
The network went live in August 2014.
The 2018 roadmap is not out yet.
The nodes are usually organizations that use the network. They run the node so they can keep an eye on the network status.
Similar to Ripple in that they both allow banks to easily transfer funds from one currency to another. However, It’s goal is to allow poorer countries to benefit from banking services through extremely low transaction fees and confirmation time.
Stellar is in partnerships with many companies, the most notable being IBM, Deloitte and Stripe.
Traded on most of the big exchanges including Bittrex, Poloniex, Binance and Kraken. It is however not yet traded on the main Korean exchanges.
Stellar is a blockchain layer.
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This document is intended for informational purposes only. The views expressed in this document are not, and should not be construed as, investment advice or recommendations.