Overall, Stellar Network aims to provide a decentralized infrastructure for fast, secure, and cost-effective international payments and asset issuance. It has gained popularity for its focus on financial inclusion and its ability to connect financial institutions, individuals, and businesses globally.
Distributed Ledger: Stellar uses a distributed ledger known as the Stellar Consensus Protocol (SCP) to maintain a transparent and tamper-proof record of transactions. SCP relies on a network of trusted nodes that collectively agree on the state of the ledger. Stellar Lumens (XLM): The native cryptocurrency of the Stellar Network is called Lumens (XLM). It serves as both a means of facilitating transactions on the network and as an anti-spam mechanism to prevent malicious actors from overwhelming the network. Fast and Low-cost Transactions: Stellar Network aims to provide fast and low-cost transactions, with an average confirmation time of 3-5 seconds. This makes it suitable for micropayments and cross-border remittances, particularly in areas with limited banking infrastructure. Anchors and Issuance of Assets: Stellar allows the creation and issuance of custom tokens, known as assets, using the Stellar Consensus Protocol. These assets can represent various forms of value, such as fiat currencies, commodities, or even digital representations of real-world assets. Anchors act as trusted entities that hold deposits of these assets and issue corresponding credits on the Stellar Network. This enables seamless exchange and transfer of assets within the network. Decentralized Exchange: Stellar has a built-in decentralized exchange that enables users to trade assets issued on the network. This facilitates liquidity and enables users to convert one asset into another without relying on traditional centralized exchanges. Support for Multi-currency Transactions: Stellar Network provides a seamless platform for multi-currency transactions. It allows users to send and receive different currencies, which are automatically converted in real-time during the transaction process, reducing the need for intermediaries. Stellar Development Foundation (SDF): The Stellar Development Foundation is a non-profit organization that supports the development and adoption of the Stellar Network. They provide resources, funding, and guidance to developers, businesses, and organizations interested in building on top of the Stellar platform.