Stellar (XLM) is a blockchain platform with open source for currency transactions. It allows the transfer of crypto-currencies, currencies, and tokens between people, companies and financial institutions.

Stellar was founded in early 2014 by Jed McCaleb and Joyce Kim as a branch of the Ripple system and for the first time worked on the protocol of the same name until its own protocol was created. To develop the platform was organized by the non-profit foundation Stellar Development Foundation.

To understand the prospects of the project, it is enough to find out the reasons for the recent transition of the Kin token network from Ethereum block to Stellar. In an interview with Kin CEO Ted Livingston said that the Ethereum block, which the application is currently running, can not scale to the level required by Kin. Ethereum tries to be everything to everyone and everything, which makes it universal, but slow. “Ethereum is a dial-up in the world of detachment.” In turn, Stellar is focused on a specific task: fast, reliable and low-cost transactions for a large number of users.

In addition to transfers, in August of this year, Stellar announced the launch of a platform for ICO, the difference of which is ease of use and cheapness. Thus, Stellar can be called the “Ethereum killer” not because of ambitious plans in White Paper, but because of real actions.

In addition to Kin, Stellar cooperates with IBM, supporting international payments based on the Lumens (XLM) cryptocurrency in British pounds and Fijian dollars. In the future, the system will be able to work with seven currency currencies, including Australian and New Zealand dollars, as well as Tokha panga.

Within the framework of this cooperation, joint work of public and private detachments has also been successfully implemented. While IBM’s blocking solutions perform transaction clearing, actual calculations will be conducted using Stellar’s blockbuster.

In calculations, Lumens tokens can be used as a “bridge” between different currencies that do not have their own direct market. For example, one side of the transaction wants to get paid in British pounds, and the other has a Litecoin account. If you can not find a market maker satisfied with both sides of the currency pair, the currency is first converted to XLM, and then to the desired currency at the most attractive rate.

XLM tokens are used to protect the network from spam accounts – on each balance sheet there must always be at least 50 Lumens coins. They also prevent the appearance of a large number of transactions – for each cash transaction, 0.00001 XLM is withdrawn from the balance sheet. This money is not credited to the balance of the organizers of the system, they simply cease to exist.


The main advantage of the system is the possibility of creating a large number of micropayments with low commissions. In addition, the ability to work with any type of currency within the platform and automate the exchange of tokens makes the site interesting for cooperation with major projects. Stellar was called the killer Ripple, but we see that both projects are actively developing and are ready to press Ethereum.


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