Stellar is a decentralized peer-to-peer network. There are no central authorities or decision-makers in this decentralized network. All details of transactions in Stellar are stored on its blockchain as a general ledger, and anyone can view the general ledger and details of the transactions. All decisions and approvals in this network are made through the Stellar Consensus protocol. The time to reach a consensus is 3 to 5 seconds. Unlike Bitcoin, Stellar(XLM) does not use the Proof of Work system, and instead, its transactions are done through the Stellar Consent Protocol (SCP).
In Bitcoin, miners work together to verify transactions. However, in this currency, the servers are responsible for confirming the transactions. In 2015, the first Stellar coding was introduced. In the first version of the stellar currency, due to the presence of McCaleb in the Ripple team, there were many similarities between the two currencies. The major goal of this network is to provide users with affordable financial services at high speeds. In this way, Stellar seeks to create a safe and fast platform for microfinance transactions around the world. Stellar Decentralized Blockchain completes thousands of transactions in 3 to 5 seconds. This advantage is the main reason for the popularity of this currency.
Who developed Stellar?
The creator of this currency is an American programmer and entrepreneur named Jed McCaleb. Jed McCaleb was born in 1975 in Fayetteville, USA. McCaleb has been interested in programming since he was a child. In 2000, he founded MetaMashine. A metadata browser that allows users to create or edit various titles, keywords, permissions, and images. McCaleb was chief technology officer at MetaMashine. Jed McCaleb is one of the most mysterious characters in the world of cryptocurrencies. He prefers to focus on work rather than pointless arguments. He has no activity on social media. Jed McCaleb attended various crypto market events and podcasts and talked about his activities in the crypto industry. After Satoshi Nakamoto released Bitcoin in 2009, McCaleb became interested in the project and its technologies. So, he started learning more and expanded his studies.
McCaleb believed that people needed the right exchange tools to use Bitcoin and other cryptocurrencies. In July 2010, he founded Mt.Gox. The company that revolutionized the crypto world. Mt.Gox is the first bitcoin exchange in the world. In 2011, McCaleb sold Mt.Gox to Mark Karpelès. In 2011, McCaleb began researching the technology used in bitcoin and attempted to create a currency that was immune to bitcoin’s inherent flaws. This is where the idea of starting Ripple came about. McCaleb developed Ripple with David Schwartz, Jesse Powell, and Arthur Britto. The currency was originally called Opencoin. McCaleb left Ripple in 2013 after a lot of controversy. A year after leaving the Ripple Foundation, McCaleb returned to the world of cryptocurrencies with a new project. The Stellar Development Foundation is a non-profit organization. Since then, Stellar became Ripple’s main competitor.
Does the Stellar blockchain structure belong to itself?
Stellar Blockchain is an open-source payment technology. Stellar is a payment technology that aims to link financial institutions, which significantly reduces the cost and time required for overseas transfers. In fact, Stellar performance is similar to many decentralized payment technologies. The most prominent distinguishing factor between Stellar and Bitcoin blockchain is its Consensus protocol. The Stellar Consensus Protocol does not require access to the entire mining network to approve transactions. Each node in the stellar network selects another set of “trusted” nodes. Once a transaction is approved by all available nodes, that transaction takes place on the network.
What are the advantages and disadvantages of XLM-Stellar?
Advantages
High speed of transactions:
Stellar processes about 2,000 transactions per second. As a result, each transaction is confirmed within 5 seconds. This dramatic pace has led to significant advances in overseas payments.
Low transaction cost:
The transaction cost of this protocol is much lower than a competitive payment protocol such as Ripple.
Utilizing advanced technical elements:
This coin can combine elements such as blockchain smart contracts with features such as multiple signatures, which greatly enhances the performance of the payment protocol.
Disadvantages
High competitiveness:
The token is facing a lot of competition. The ripple payment protocol is Stellar’s biggest competitor because one person runs them. In addition, traditional banking institutions are trying to diversify their overseas payments and maintain access to different communities.
Restricted access to the transaction:
There must be at least 20 XLM currencies in the wallet. This limitation on the system can be a problem for users who do not plan to invest that amount in Stellar.
XLM is a decentralized currency:
Unlike Ripple, XLM is a decentralized currency. While many users may prefer XLM to Ripple, for this reason, other users, such as banks and other financial institutions prefer a centralized system like Ripple.
Stellar vs. Ripple
McCaleb developed both projects. In addition to the similarities between the two projects, there are fundamental differences between the two. Besides the similarities between the two projects, there are also fundamental differences between the two projects. Although Ripple focuses primarily on maintaining partnerships with major banks and financial institutions, the currency is focused on enhancing global financial knowledge.
The coin was founded on July 30, 2014, and Ripple was founded on January 1, 2012. The time required for Stellar transactions is 3 to 5 seconds and for Ripple is 4 seconds. The XLM target market is the public, while Ripple target market is financial institutions.
Final words
The Stellar Network is a platform for decentralized payment and banking services to the public. This network is one of Ripple’s competitors. The XLM is a payment protocol based on distributed ledger technology that allows for fast, cross-border transactions between cryptocurrencies and other Fiat currencies. Most Stellar network transactions take less than 5 seconds. Stellar wants to become the standard way to send money around the world. Instead of big risky banks, Stellar has focused on money transfer and remittance companies. The final success of this project will depend on its approval by the old financial institutions and the scalability of the network.
www.stellar.org
Source: Pipsafe.com
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