Stellar (XLM) is a cryptocurrency that operates on a decentralized network known as the Stellar Consensus Protocol (SCP). Created in 2014 by Jed McCaleb, the co-founder of Ripple, Stellar aims to facilitate cross-border transactions and enable fast and low-cost money transfers.
The Stellar network is made up of a series of decentralized servers that run the SCP algorithm, which allows for quick and secure transactions. Unlike other cryptocurrencies like Bitcoin, Stellar does not rely on mining to validate transactions. Instead, it uses a unique consensus mechanism that enables faster transaction times and lower fees.
One of the key features of Stellar is its ability to facilitate the exchange of different currencies, including fiat currencies and other cryptocurrencies. This makes it an ideal platform for cross-border transactions, as users can easily convert one currency into another without the need for traditional banking systems.
Stellar also has built-in smart contract functionality, allowing developers to create custom tokens and decentralized applications (dApps) on the network. This feature has led to the development of various projects and partnerships within the Stellar ecosystem, further enhancing its utility and value.
Overall, Stellar is a versatile and efficient cryptocurrency that leverages innovative technology to enable fast, low-cost, and secure transactions. Its unique consensus mechanism, cross-border capabilities, and smart contract functionality make it a promising platform for the future of finance.