Stellar is an open-source, distributed payments infrastructure. It is 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 fractions of a penny by using a crypto-asset called Lumens (XLM) as a bridge.
Stellar (payment network)
|Original author(s)||Jed McCaleb, Joyce Kim|
|Developer(s)||Stellar Development Foundation|
|Initial release||July 31, 2014|
|Type||Real-time gross settlement, currency exchange, remittance, blockchain, cryptocurrency|
Stellar is an open-source, decentralized protocol for digital currency to fiat currency transfers which allows cross-border transactions between any pair of currencies. The Stellar protocol is supported by a nonprofit, the Stellar Development Foundation. The Stellar network has been used by companies such as IBM, KlickEx, Deloitte, Parkway Projects, Tempo, Wanxiang Labs and Stripe.
In 2014, Jed McCaleb, founder of Mt. Gox and co-founder of Ripple, launched the network system Stellar with former lawyer Joyce Kim. Before the official launch, McCaleb formed a website called "Secret Bitcoin Project" seeking alpha testers. The nonprofit Stellar Development Foundation was created in collaboration with Stripe CEO Patrick Collison and the project officially launched that July. Stellar received $3 million in seed funding from Stripe. Stellar was released as a decentralized payment network and protocol with a native currency, stellar. At its launch, the network had 100 billion stellars. 25 percent of those would be given to other non-profits working toward financial inclusion. Stripe received 2 percent or 2 billion of the initial stellars in return for its seed investment. The cryptocurrency, originally known as stellar, was later called Lumens or XLM. In August 2014, Mercado Bitcoin, the first Brazilian bitcoin exchange, announced it would be using the Stellar network. By January 2015, Stellar had approximately 3 million registered user accounts on its platform and its market cap was almost $15 million.
The Stellar Development Foundation released an upgraded protocol with a new consensus algorithm in April 2015 which went live in November 2015. The new algorithm used SCP, a cryptocurrency protocol created by Stanford professor David Mazières.
Lightyear.io, a for-profit entity of Stellar, launched in May 2017 as the commercial arm of the company. In September 2017, Stellar announced a benefits program, part of its Stellar Partnership Grant Program, which would award partners up to $2 million worth of Lumens for project development. In September 2018, Lightyear Corporation acquired Chain, Inc. The combined company is Interstellar, with Adam Ludwin, who was Chain’s CEO, Interstellar’s CEO, and Jed McCaleb as CTO. The company's portfolio includes StellarX.
In 2015, it was announced that Stellar was releasing an integration into Vumi, the open-sourced messaging platform of the Praekelt Foundation. Vumi uses cellphone talk time as currency using the Stellar protocol. Stellar partnered with cloud-based banking software company Oradian in April 2015 to integrate Stellar into Oradian's banking platform to add microfinance institutions (MFIs) in Nigeria.
Deloitte announced its integration with Stellar in 2016 to build a cross-border payments application, Deloitte Digital Bank. In December 2016, it was announced that Stellar's payment network had expanded to include Coins.ph, a mobile payments startup in the Philippines, ICICI Bank in India, African mobile payments firm Flutterwave, and French remittances company Tempo Money Transfer.
In October 2017, Stellar partnered with IBM and KlickEx to facilitate cross-border transactions in the South Pacific region. The cross-border payment system developed by IBM includes partnerships with many large banks including Deloitte.
In December 2017, TechCrunch announced Stellar's partnership with SureRemit, a Nigerian based non-cash remittances platform aimed at solving the challenges of remittance in Africa, India, and the Middle East
In January 2018, it was announced that ZED Network would be developing an integrated global payments platform using the Stellar distribution network and its blockchain technology. That same month, Mobius Network ran its initial coin offering (ICO) on the Stellar network. Also in January 2018, Stellar gained media attention when online payment company Stripe announced it might add support for Steller's cryptocurrency, lumens.
Stellar is an open-source protocol for exchanging money using blockchain technology. The platform's source code is hosted on Github. The Stellar network can quickly exchange government-based currencies with 2 to 5 second processing times. The platform is a distributed ledger maintained by a consensus algorithm, which allows for decentralized control, flexible trust, low latency, and asymptotic security.
Servers run a software implementation of the protocol, and use the Internet to connect to and communicate with other Stellar servers, forming a global value exchange network. Each server stores a record of all “accounts” on the network. These records are stored in a database called the “ledger”. Servers propose changes to the ledger by proposing “transactions”, which move accounts from one state to another by spending the account’s balance or changing a property of the account. All of the servers come to agreement on which set of transactions to apply to the current ledger through a process called “consensus”. The consensus process happens at a regular interval, typically every 2 to 4 seconds. This keeps each server’s copy of the ledger in sync and identical.
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