Do you know the common point among the fastest-growing and modern blockchain platforms? There may not be a simple answer to this question; however, if you take a close look at the emerging and leading blockchain platforms in the blockchain industry, then you would understand that all blockchain platforms that are emerging are focusing on three main criteria, which consists of speed, low cost of transaction and scalability that were absent in traditional blockchain platforms. Stellar blockchain is an emerging platform based on blockchain which is betting its back on the above three combinations. Stellar blockchain is considered among the top 10 trendy and most famous blockchain platforms in the current blockchain industry. With the increasing popularity of stellar blockchain, stellar lumens is now the leading cryptocurrency that is steadily adopted and accepted in the cryptocurrency market. The following guide will help you cover the important aspects of stellar blockchain platforms and highlight what is stellar, its advantages, and its prime features.
Basics of Stellar blockchain network
- Stellar is a decentralized peer-to-peer network that works without a centralized entity.
- All the decisions and verifications on the stellar blockchain network are taken via consensus. Consensus can occur on the stellar blockchain network every three to five seconds.
- A stellar network follows an open distributed Ledger system, and details of every transaction present in the Stellar network are properly stored on blockchain technology.
- This makes the Ledger system of stellar networks more transparent and open source. Users can also view this Ledger.
- Anchors are the entities in the Stellar network and help hold deposits and issue credits whenever required. The stellar mechanism depends heavily on anchors, and users must trust the anchors for transactions like holding deposits and issuing credits. A stellar mechanism system is faster and more powerful than other blockchain networks because all anchors within the cellular network share the same Stellar network.
- The stellar network supports multi-currency exchanges, which take place in either conversion chain or direct exchange ways.
What is stellar blockchain network?
Stellar blockchain is a type of payment protocol distributed ledger technology that provides cross-border and quick transactions using any currency. In most cases, the Stellar blockchain is similar to other types of blockchain-based cryptocurrencies. Stellar is a blockchain platform that helps connect payment systems, people, and banking institutions so that money can be moved reliably, quickly, and at no additional cost. It has its native digital currency known as Stellar lumen, which stands for XLM, and this currency powers the overall operations that takes place on the blockchain network. With the inception of the stellar blockchain network, approximately 100 million stellar lumens, or XLM, were created. XLM can be created with another mechanism known as inflation. There has been annual inflation of fixed 1%, and this rate accounts for lost lumens and economic growth. The direct voting system helps to distribute newly created lumens generated almost every week.
What is the difference between Stellar development foundation and stellar network?
Stellar development foundation, is an NGO or nonprofit organization contributing to tools development, financial inclusion, and social initiative on the stellar network. Stellar employees can write code for the Stellar network, but the organization’s technology is independent. On the other hand, Stellar network is a distributed Ledger technology that helps perform financial transactions. Stellar network technology is distributed, community-owned, and open-source in nature
What are the characteristics of a stellar blockchain network?
The following are the top features of the Stellar blockchain network.
- Stellar support plenty of transactions every second.
- The stellar database is open source and decentralized, and these traits have made it a true leading blockchain platform to exist today.
- Stellar has fixed annual inflation of 1%.
- Stellar enables smart contracts and multi-signature.
- The time required for transaction confirmation in the stellar blockchain is three to five seconds, facilitated by the network’s consensus mechanism.
How does Stellar work?
Like any blockchain platform, a stellar network enables transactions via distributed and shared public Ledger. This blockchain network uses a consensus algorithm based on FBA or Federated Byzantine agreement, also referred to as Stellar consensus protocol. Stellar consensus protocol enables fast transaction that takes place at a reduced cost. Everyone on the network can agree about the transaction’s validity within a few seconds.
A system protocol named stellar blockchain helps track ownership. It utilizes an accounting Ledger that can be shared across different independent networks of computers for storing important information about accounting holders. The two essential stored information includes the account holder’s balance and the operations that they plan to do with the balance like selling or buying offers.
Stellar includes nodes that help seamlessly function the blockchain network and publish the Ledger. For instance, if you are sending money to someone who uses an app based on Stellar, then the nodes will verify correct balances that are both debited and credited. Every node helps another node to agree as well as see the transaction. No one controls the stellar network, which is why this network hosts several independent computers worldwide.
Where does Stellar derive its value from?
Stellar can host multiple exchanges between tokens and currencies every second since it is a blockchain-based global exchange network. This is how Stellar blockchain holds undisputed utility and value for itself. You must know that transferring Fiat currency or cryptocurrency is an expensive and long-drawn affair; however, senior blockchain meets the work much cheaper and swifter for you. The cryptocurrency of Stellar, known as XLM, is well supported within the stellar wallet. This cryptocurrency is used to pay transaction fees and manage all the accounts on the Stellar network.
What is the base fee for a transaction on the stellar network?
A nominal amount is charged as a base fee for making a transaction on the Stellar network. This nominal base fee amount is related to every transaction operation. However, this base fee does not comprise any profit motive. The basic transaction helps to prevent malicious activities. The base fee at present on the stellar network is .00001 XLM. The one who performs a transaction has to bear this expense, and this fee is collected by the distributed Ledger, which is redistributed in the inflation process.
What are the integration fee and startup cost for building DApp on the stellar network?
You can use Stellar network completely free of cost. Integrators can integrate with the Stellar network by assigning technical resources. The technical development will require 120 to 200 hours and is based on the size as well as the experience level of the development team.
Suppose you are using a service provider as any third-party blockchain. In that case, all your fees will be related to the cost of expert advisory, consultation, and development team.
What are the benefits of using stellar blockchain?
The stellar blockchain platform is quite flexible since it enables users to set their accounts for various purposes such as loan repayment, savings, business, etc.
- Good reputation
Stellar blockchain team has earned an excellent reputation over a few years and has an incredible success rate record of delivering promising services and solutions to users.
- Low fees
Stellar’s network is decentralized, which is why low fees are required for sending and receiving money. In this way, stellar blockchain differs from other types of cryptocurrencies, where a significant amount is charged for accepting transactions or sending money.
- Ease of use
The stellar platform is super easy to set up an account in this network and even send money through this platform. Users find this platform so easy that they need not understand how to sign transactions.
How can business and companies leverage their potential with the help of Stellar blockchain?
In the present digital world, where every day new nascent and new blockchain networks are emerging every day, Stellar has reached the top ten blockchain platform that is widely used in the present day. The stellar blockchain network is also leading within the crypto space; this platform sends and receives digital currency of all types. Stellar blockchain is a payment protocol that is open source, decentralized, and helps to allow cross-border transactions and is quite low-cost, reliable, and quick.
Stellar blockchain technology is employed by multinational organizations worldwide, such as financial institutions, banks, payment aggregators, technical specialists, etc. This blockchain network helps them be a part of the innovative and new global infrastructure for receiving and sending payments. Stellar blockchain technology has risen in prominence because it facilitates a cheap and quick way to make a transaction.
Business gains benefit as this network provides:
- A cost-effective and efficient solution for making international payments.
- Micropayment processing.
- Cross-border money transfer.
For example, the saldo company helps migrant workers in the USA support their families residing in Mexico by facilitating quick money-sending procedures across borders. In the initial stages, the company faced international transaction problems when transferring small amounts as this process became expensive and slow.
This resulted in migrant workers facing complexity and higher costs while transferring money to their families each month. After employing the stellar network interface, the company offered real-time financial settlement and facilitated quick cross-currency transactions without facing higher fees or complications.
Stellar blockchain provides high-performance, low-cost, user-friendly blockchain solutions to businesses and helps them to increase their profit as well as increase their efficiency level. As the potential of stellar blockchain is constantly increasing, it is time for companies and business organizations to take advantage of this blockchain platform. With the help of a stellar network, a business scan performs financial functions with utmost safety. Various features are present in Stellar blockchain, which helps to open numerous doors of opportunities as well as possibilities for companies as well as businesses. Certain application ideas of Stellar are trading and mobile clients, P2P lending, community currencies, merchant plugin, conditional cash transfers, micro saving accounts, volunteer hour tracking, and conditional cash transfers that can be used for different purposes like insurance, health, school, etc.
For what purpose was stellar network designed?
The stellar blockchain network was designed to address several problems in the blockchain industry. The stellar network being cheap helps to make transactions free of cost. This makes this network an easy means to make micropayments. This network can also handle assets and is known to be a network of peers, enabling users to make transactions directly. Users can use a stellar network to transcend the local economy and interact directly with the global market. As the Stellar network belongs to every user and is not particularly controlled by someone, this makes the network more reliable. Thousands of users are using Stellar for making transactions. It is also gaining an impressive partnership with fortune companies like IBM Deloitte, stripe, etc. With the help of impressive partnerships, advisors, and a dedicated team, Stellar can witness steady growth within the field of blockchain technology.
How can you buy stellar XLM?
Now that you know what stellar blockchain is and its prime benefits, you would probably want to know how to buy Stellar XLM. You can buy Stellar lumens in the simplest method with the help of a trading platform.
Users must compare the platforms and choose the ones that enable them to hold stellar lumens. Always choose a reliable cryptocurrency exchange that allows users to buy and exchange cryptocurrency. The platform must enable you to earn money on price fluctuation and be friendly towards token withdrawal.
Cryptocurrency value is constantly rising in the market. Now the question arises where you should invest in cryptocurrencies? The maximum user attention when it comes to cryptocurrency is put on Ethereum and Bitcoin. But Stellar is also a promising cryptocurrency exchange that provides a great advantage compared to other digital currencies. This is because a stellar blockchain platform facilitates low fees, is easy to use, and helps make large and small transactions. Investing in stellar cryptocurrency holds good value and is a great investment.
Artem Ilchenko is a seasoned crypto enthusiast with a journey dating back to 2016. With a wealth of experience in blockchain technology, DeFi (Decentralized Finance), NFTs (Non-Fungible Tokens), and the broader cryptocurrency ecosystem, Artem is a passionate advocate for the decentralized future. His deep understanding of the intricacies of blockchain and its innovative applications has positioned him as a valuable resource in the ever-evolving world of digital assets. Artem’s commitment to exploring and promoting the potential of blockchain technology has made him a noteworthy figure in the crypto community.