TO "platform that connects banks, payment systems and people".
The main purpose that the Stellar network hopes to achieve is to offer a payment transfer system for everyday uses that is simplified, economical and internationally accessible.
The Stellar network was announced for the first time in the world in 2014 as a blockchain project that hopes to be the bridge between the concept of decentralized cryptocurrencies and seemingly contradictory centralized banking institutions.
If this sounds like the goal of the Ripple Network, it is because it is derived – literally – from the same idea and from the same technology. The Stellar Network, like a fork of Ripple, adopts many aspects from the main project. It shares the main similarities, up to the founding member of the project.
The launch of Stellar
The co-founder of both projects, Jed McCaleb, had non-practicable differences in the way he wanted the Ripple project to go and the direction the project was taking and for this, along with the interpersonal conflicts within the 39, company, left Ripple. McCaleb then put his energy into a forked version of the project and so Stellar was born. The creation of Stellar led to multiple legal actions against the ownership of the XRP funds that had been allocated to McCaleb – 9 billion XRP – which eventually won and which was then able to liquidate the shares.
It still needs funding, although Stellar has received a $ 3,000,000 loan from Stripe, a payment services company. The loan was subsequently repaid with 2% of the initial 100 billion version of the Stellar native token, the Lumen.
Lumens – represented as XLM – can be used to pay for various transactions on the Stellar network, as well as acting as a means to fill the gaps between currency pairs (such as Bitcoin ad Ethereum) when there are no direct markets available for trading or trading. virtual currencies.
Ripple vs Stellar
Stellar could have started as a fork in the Ripple project, but the two platforms have become fundamentally different.
Ripple is a commercial entity that exists for profit and focuses mainly on creating payment networks between large financial institutions, such as banks. Stellar, on the other hand, is a non-profit platform that works alongside financial institutions and money transfer operators and maintains a key focus on "banking the unbanked".
Furthermore, the consensus mechanism between the two is also very different. Ripple is based on the "probabilistic vote", while Stellar instead uses its own stellar consent mechanism. This means that in the Ripple operation, it uses a ledger that is limited to allowing those able to validate transactions, while Stellar allows anyone in the ledger to validate transactions.
Ripple Labs – which is mainly where McCaleb's problems come from – attempts to act as a facilitator of transactions between large financial institutions. Stellar opts instead to act as a virtual currency that is required for regular payments between people and traders – and not in interbank relations.
One of the main differences between the parent company and the forked company is the annual inflation rate of 1% that Stellar has and Ripple no.
The stellar relationship with the initial offers of coins
Although not widely advertised, one of the most important features of the Stellar network is that it has a built-in token platform that gives organizations the opportunity to create their own star blockchain tokens and launch the first coin offerings (ICO) so it can avoid acquiring complex smart contracts and bypass the frustrating process of listing the token in the exchanges.
Start-ups trying to launch ICO are able to establish their personalized offer on the star network that offers users the choice to build structures able to perform a number of functions, such as facilitating the issue of dividends and simplifying the processes involved in bonds and in collateralised debt.
The basic details of Stellar are that there is a limited supply of 100,000,000,000 of XLM that will be produced with a current market capitalization of $ 7,692,389,801 USD. Unlike other cryptocurrencies, it can not be extracted and therefore does not have a type of test nor a blocking time. It is noteworthy that Stellar Lumens has an annual inflation rate of 1%.
There are several portfolios in which the Luminous stars can be stored. A user can store XLM in desktop, mobile, or web portfolios such as Ledger Nano S, Stronghold, Foxlet, and Firefly. A complete list of available portfolios that may contain Lumens can be found here.
Stellar XLM has been listed on several cryptocurrency exchange platforms, such as Binance, Upbit, Poloniex, Kraken and OKEx. A complete list of exchanges can be found here.
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