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What is Stellar? (XLM)

The Beginner’s Guide


Stellar seeks to reimagine the market for currency and asset transfer by creating a distributed network that’s been described as everything from a payment rail to an exchange. 

So while answers to the question “What is Stellar?” may change depending on who you ask, that isn’t the fault of the technology. As it did at its 2014 launch, Stellar allows users today to send money and assets in ways that have traditionally been the domain of payment providers.

The difference is that Stellar enables these services by incentivizing a distributed network of computers to run a common software.

The idea is anyone using a service powered by Stellar could transfer everything from traditional currencies to tokens representing new and existing assets. These assets can then be traded between users (across borders) with less friction using its cryptocurrency, lumens (XLM).

In this way, Stellar shares similarities with the XRP Ledger (and its cryptocurrency, XRP), which is also meant to provide a protocol for payment providers and financial institutions.

But Stellar has also sought to position itself as a kind of decentralized exchange, as its ledger has what is effectively a built-in order book that keeps track of the ownership of Stellar assets. 

Developers have increasingly sought to make Stellar a marketplace for assets issued on its own protocol, with features that allow users to manage buy and sell orders and set preferred assets when settling trades.

What is stellar lumens xlm


Who created Lumens (XLM)?

Stellar is the name for the distributed computer network on which lumens are the cryptocurrency required to send transactions. Lumens now trade under the ticker symbol XLM on exchanges like Kraken, and as a result, they are often called XLM for short. 

The individual credited with creating lumens is Stellar co-creator (and Stellar Development Foundation founder) Jed McCaleb. McCaleb notably founded the first successful bitcoin exchange, Mt Gox, and designed the XRP Ledger.

McCaleb would go on to serve as the chief technology officer (CTO) of Ripple, the company that today sheppards the development of the XRP Ledger, until 2013 when he left to create Stellar. 

Other notable contributors to XLM’s technology and ecosystem, include:

  • David Mazieres, author of the Stellar consensus protocol

  • Denelle Dixon, the SDF’s Executive Director and CEO

  • Joyce Kim, founder of Stellar and former Executive Director of the SDF. 

More information about the Stellar Development Foundation’s leadership team can be found on the project’s official website.

Paano gumagana ang Stellar?


Sa oras ng paglulunsad nito, kinopya ni Stellar ang code na ginamit upang paandarin ang XRP Ledger, ibig sabihin ay minana nito ang karamihan sa disenyo at mga feature nito. 

Gayunpaman, gumawa ang Stellar ng mga teknikal na pagbabago upang mag-iba ang alok nito.

Stellar Consensus Protocol 

Ang pinakamalakingupdate ng Stellar ay naganap noong 2015 nang palitan nito ang mekanismong ginamit upang mapanatili ang pagpapatakbo ng mga computer ng software nito sa kasunduan tungkol sa estado ng ledger nito na may pasadyang built-in alternative.

Base sa konsepto na tinatawag na federated Byzantine agreement, isang uri ng pamamaraang pinagkasunduan na nauna pa sa naidisenyo para sa Bitcoin (BTC), ang Stellar Consensus Protocol ay nagbibigay-daan sa mga node na bumoto sa mga transaksyon hanggang sa maabot ang mga korum. 

Mas madami pang detalye ang pwedeng matagpuan sa Ang Medium ng Stellar o dito technical explainer

Pagpapatakbo ng isang Node

Ang software na ginamit upang mapagana ang Stellar network ay tinatawag na Stellar Core, at maaari itong patakbuhin sa iba't ibang paraan depende sa mga pangangailangan ng isang user.Ang mga node ay maaaring i-set up upang magsilbing Watchers, Archivers, Basic Validators o Full Validators.

Ang mga watcher ay maaari lamang magsumite ng mga transactions. Ang mga Full Validators, sa kaibahan, ay lumalahok sa Stellar Consensus Protocol, na bumuboto sa kung saang mga transaksyon dapat ituring na wasto at mapanatili ang isang archive ng kasaysayan na ito para sa iba pang mga node. 

Maraming mga detalye tungkol sa iba't ibang mga node ay matatagpuan on Stellar.org.

Pag-isyu ng Mga Asset

Isa pang mahalagang network function ay pinag-gaganapan ng mga Stellar Anchor (orihinal na tinawag na mga Gateway).

Ang mga entity na ito ay tumatanggap ng mga deposito ng mga currency at asset, at naglalabas ng mga bagong representasyon ng mga asset na ito sa Stellar. Pagkatapos ay itatatag ng mga anchors ang mga kinakailangang mga requirement ng mga Stellar user upang matugunan ang pag-hold ng mga asset. Maaari rin nilang bawiin ang user access sa mga assets. 

Higit pang mga detalye tungkol sa kung paano gumagana ang paglabas ng asset sa Stellar ay matatagpuan here.


Why does XLM have value?

Stellar has seen a number of changes to its economy over the years. 

At launch, a supply of 100 billion lumens (XLM) were created, and for the first five years of the network’s operation, this increased 1% annually until 105 billion were in circulation. 

As of late 2019, however, this subsidy is no longer in force, with Stellar users voting to end the programmatic supply increases. That year, the Stellar Development Foundation also took steps to regulate the XLM economy, electing to reduce its share of the XLM supply

This dropped the number of available lumens from 105 billion to just over 50 billion. 

Apart from its finite supply, XLM gains value from its use as fuel for transactions on the network, as a small amount of lumens, 100 stroops (0.00001 XLM), are deducted as fees whenever a transaction is made. This helps prevent bad actors from spamming the blockchain.


Why should I use Lumens (XLM)?

Today, the uses for XLM are varied. For example, you may find XLM to be a valuable addition to your portfolio should you believe financial institutions may seek out crypto networks where they have more control over who can use and access any assets they issue. 

To date the largest test of the technology is by software giant IBM, which used Stellar in 2018 to create and launch a cross-border payments solution called World Wire. 

Developers may find XLM useful should they want to issue new types of assets, and already entrepreneurs have used the network to launch new cryptocurrencies. 

However, as of 2020, whether Stellar will gain traction with any of these more experimental use cases, or win a share of the competitive payments market, remains an open question. 

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