How Stellar Works & It’s Historical Background

Over the years the cryptocurrency world has experienced a lot with improvements with more digital currencies being invented year after year. You have probably heard about Stellar the currency from a friend or the internet maybe. Well, if you still don’t understand what Stellar is this article is at you best interest. Stellar is a digital currency which has a protocol with the open source program for exchanging values and distributing global payments infrastructure.

Stellar sourced its inspiration from the protocols of the Ripple lab at the beginning. All in all, recently, it has been able to stand on its own creating an entirely independent network system. The kind of technology behind the Stellar connects people from all over the world, diverse payment systems, as well as banking systems. Its main aim is developing and connecting the world. Stellar lets you facilitate multi-currency systems and transactions for assets as quickly and reliably as possible. All that is made possible for fractions of a penny with the help of crypto-asset known as Lumens (XLM) as the anchor.

In that case, this article will be aimed at giving a detailed insight about the Stellar Currency, its history, founders, developers, case study as well as the market performance of this digital currency. I hope by the end of this article you will an in depth understanding of the Stellar cryptocurrency as a whole. Sit back as we ride through this world of digital currencies.

History of the Stellar XLM

The Stellar currency was founded in the year 2014. The genius behind the whole stellar technology was Jed McCaleb who was the creator of eDonkey and pioneer of the Bitcoin as well. His counterpart was a female known as Joyce Kim who was also a market activist of the Crypto world. When the Stellar currency was first launched it was entirely based on the Lab protocol for the Ripple currency. After a few improvements on the consensus code for the Stellar, it was able to implement an independent network system. The co-founder of the stellar currency Joyce Kim made claims that the faulty consensus code was a flaw associated with the Ripple protocol. Later, her words were challenged in a blog post by the Chief Technology Officer of the Ripple Labs.

After some time, Stellar Development foundation came up with a new updated version of the consensus algorithm which was based on a wholly new coding. The coding as well as the whitepaper which was designed with the new algorithm was however released in April 2015. In November the same year, the upgraded Stellar’s Network System went live in the Crypto world.

How Stellar Works

Stellar is designed as an open source protocol which is efficient for money transfer. Certain servers are put in place to facilitate the implementation of the software compatible with Stellar protocol. In addition, there internet connectivity is used in order to connect to other stellar users globally. This connectivity forms a global exchange network for the values. Each of the connected networks keeps a clean record of all the accounts in that particular network.

All the records from each network are stored in databases known as ledgers. The servers put in place to take care of the ledgers make propositions to the accounts which are in turn moved from the current state to another simply by spending the balance in one account or in other cases by making changes on the properties of that account. All servers are then required to agree on the transactions set to use on the ledgers in progress through a process known as the Consensus.

This consensus process happens regularly which is always at an interval of about two to four seconds. This way, all the servers get access to the copy therefore can synchronize the data and produce and identical copy. The design and upgrade systems in the Stellar are all aimed at compensating for the drawbacks the consumers experience with Ethereum. This way, they have come up with an advanced platform known as the Stellar XLM.

Stellar XLM

Stellar XLM, also known as Lumen is the native asset meaning it is built into the stellar ecosystem. By 2014 during its launch, there was a hundred billion Stellars which were considered as the original Lumens. After the upgrade in the year 2015, the Stellars were converted to Lumen which was a strategy by the company to separate its non-profit and the currency of the network.

Lumens are necessary to the network because of different reasons for instance preventing spammers from overloading the network. This is made possible because of the minor fee for every transaction (0.00001 Lumen per transaction). The network authenticates its users hence the network has only legit users. This is made possible by the fact that every user is required to have at least 30 Lumens to open an account.

Additionally, Lumens are quite easy to use since they conduct multiple transactions in different currencies. If the market isn’t large enough in 2 corresponding Lumens, the user can bridge the Lumens. You have the choice of buying Lumen from different exchanges hence you do not require a liquid market.

Lumen Wallets

The cryptocurrency is supported by different wallets but the safest one you may opt for is the ledger hardware wallet. Other wallets can also support stellar cryptocurrency where you can transact by buying and selling the crypto in different currencies. Always check for the best wallet that will suit your needs. Stellar is quite easy to use. You just simply create an account in their wallet and you are able to buy and sell money through it. There are various sequential steps you can obviously check out on their websites.

In conclusion, most of the cryptocurrency enthusiasts are expecting more from this coin since it has one of the best features in the cryptocurrency world. We all know that in this world of cryptocurrency, the future is very unpredictable. Therefore, we can only anticipate a brighter future for this coin especially since the founders are experts in the cryptocurrency world.

Collins Valentin

Collins is a blockchain enthusiast, who spends his time between documenting the blockchain revolution in Africa, and writing the latest on the cryptocurrency space. Email: editor.news@blockpublisher.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.