Stellar

Stellar (XLM) is a blockchain platform focused on facilitating low-cost, fast cross-border payments. It was launched in 2014 by Jed McCaleb, who also founded Mt. Gox and co-founded Ripple. The Stellar Development Foundation (SDF), the non-profit organization behind Stellar, aims to enable low-cost and efficient financial transactions, especially in developing economies.

Stellar is distinguished from other blockchain platforms by its consensus algorithm called Federated Byzantine Agreement (FBA). This protocol allows for faster and cheaper transaction processing by using a set of trusted nodes to reach consensus. As a result, Stellar can process up to 1,000 transactions per second, with each transaction costing just 0.00001 XLM, significantly less than most competing platforms.

The main cryptocurrency of the Stellar network is lumens (XLM). Lumens are used to pay transaction fees and facilitate trades between different currencies on the platform. At launch, 100 billion lumens were created, but in 2019, the SDF destroyed 55 billion tokens to increase efficiency and value of the remaining tokens.

Stellar is known for its strategic partnerships, such as with IBM on the World Wire project, which allows large financial institutions to conduct cross-border transactions using the Stellar blockchain. Another notable partnership is its collaboration with MoneyGram, which enables transfers between cryptocurrencies and fiat currencies in key remittance markets.

Stellar also supports decentralized asset exchange, which allows users to send payments in specific currencies, with the platform automatically performing forex conversions. This feature greatly simplifies international transfers and reduces the costs and time delays associated with traditional bank transfers.

Despite its successes, Stellar has also faced criticism, mainly due to the centralization around the SDF, which controls a large portion of the XLM tokens. This has led to concerns about potential market manipulation. However, SDF has taken steps to address these concerns, including transparent token burning and a commitment to decentralization of the network.