Stellar – public infrastructure for your money
Stellar is supported by the non-commercial organization. It yields unity in the world by combining financial systems and currencies.
With the help of Stellar technology, people can transfer money. It is also useful for various institutions. Companies, organizations, and even funds can operate their means. The process is not difficult at all. It is as easy as downloading the file. It means that people manage the transactions and bank commitments are reduced. At the same time business gets the benefit.
This world’s financial infrastructure is open. And everyone can help to improve it. You should either become a part of the community or use the Stellar platform as a basic point. In both options, you get a reliable tool to manage your means. The platform will operate each of your transactions. Once you use the network, you will convince of its success.
The Stellar platform differs from others by its direction. This platform works by the principle of consensus. It works with all world currencies. It has one more advantage. The decentralized exchange stock is already set in the technology. In turn, this helps to deal with currencies and assets. So, this functions as help in managing your means. As a result, you get one more way to transfer your money quickly.
Stellar is a kind of offshoot of Ripple. Yet, the developers’ aim was to liquidate Ripple. They wanted to create another protocol without any disadvantages. This led to a new protocol for Stellar. It has a new consensus scheme based on an absolutely new code. Then Stellar changed the name of its coin. Instead of STR, the world got XLM.
The main purpose of Stellar is to create particular conditions for its users. The participants would not experience the thrill while working with the system. The network provides similar privileges to all contestants. Everyone can see and check the number of XLM. It makes XLM available and equal for all.
Stellar is a stable coin for a long time. So, it is a good option for investing without fear. Unfortunately, not everyone knows all functions and opportunities given by the currency. With its help, you can pay in the supermarkets or pay for services, etc. If people were aware of this fact, the cryptocurrency status could be much better.
Many world companies manifested interest in the platform. One of the African companies is going to integrate it into the messenger. It will allow the African population to economize on telecommunication. One of the Croatian companies plans to use the platform as a microcredit tool in Nigeria. The cryptocurrency rate grows constantly what means demand for this currency.
Stellar’s tokens are always in the network. All you need is a unique key. The system cares about the safety of data. Without the key, the network is inaccessible. Yet, you should become the client to operate and manage your transactions. The platform is available on three types of crypto-wallets: web, desktop, and mobile. It makes it accessible for all categories of people.
Stellar’s business model
Every new project requires finances and investments. Stellar did not become an exception. It was decided to organize a non-commercial, non-stock fund for managing Stellar. The company Stripe was responsible for financing.
Ripple was constantly criticized. The community stated that Ripple is a centralized platform. It has an autocratic managerial style. They control and divide a large number of XPR tokens. Thus, they grant too much money for promoting this cryptocurrency. Moreover, they speculate on the increase in their cost. Plus, it is controlled by the commercial structure.
Of course, such an approach caused negative reactions. Thus, it was decided to detach Stellar from Ripple. The code of Ripple is something special and closed. The community believes that Stellar will replace Ripple sooner or later. They hope Stellar can yield the same opportunities without the disadvantages mentioned above.
Stellar’s network has no central or main point. Its peer nodes can work independently from each other. In brief, the Stellar system is independent. Plenty of independent servers are the main purpose of Stellar. The more servers the better. They all would take part in the network for keeping its successful work. So, each element in the system is important.
The Stellar register is careful about its content. The Stellar register contains all the information about what happens in the network. The register records all financial operations the users conduct. Any object can start the server.
Anchors function as nominees. Their main function is to keep the deposits. They also should grant means to Stellar for these deposits. Together they function as a connecting link. They connect the currency with the system. Anchors grant the loans. And all financial operations in the network are accomplished by these loans. XLM is an exception in this issue.
Of course, you should trust the anchor. Otherwise, you won’t be able to commit your deposits and conduct other transactions. This is like in a real life. If you can’t trust the person, you will not have any business with him, right?
The features and opportunities of the block-chain are not limited. It may keep the offers. Offers are public liabilities by changing one type of loan to another one. Upon that, the rate must be determined in advance. All these offers create a so-called ‘order book’. This book turns into the global asset market.
Stellar cares about its client and does its best to meet all their needs. The authority wants to ease the process of transferring worldwide. It stipulated the order book for various currency pairs. Yet, before changing look through the order book to check the presence of the pair you need. People can buy and sell the currency in a foreign one. And also they can convert the currencies directly during transactions. It is comfortable and quick.
Stellar is created to ease your life. For instance, your sister lives abroad. She can’t come to your birthday and would like to surprise you with some dollars from her BNB wallet. With Stellar, BNB will be automatically converted into dollars. Moreover, the network will make a transaction by the optimal exchange rate. Why? Because Stellar cares about your money.
What is special in Stellar?
- 1000 transactions per second;
- open original code;
- understandable API;
- multi-signing and smart contracts;
- decentralized assigned database;
- spreading coins;
- absence of mining;
- vast community;
- mid-point of Github-activity;
- accessibility on stocks;
- long-term investment vehicle.
The system works by the following principle. The transactions of participants should be confirmed by the network nodes. Voting helps to achieve consensus. So, voting is a very important stage.
Everything is simple. With the help of SCP, contestants choose the node group for voting. They also vote for the final decision of the group. Mostly, this principle is like Ripple's one. Yet, anyone can have this node. This what differs Stellar from Ripple.
First, you should determine the node pool that will take part in achieving consensus. It looks like mutual polling. It requests the data on all network nodes. Users operate their transactions via these chosen nodes.
The process of voting must not exceed 5 seconds. And it should have not less than 80% of verified and valid confirmations. Then successful transaction goes to the ledger of the node. In turn, this ledger builds the next block. This step is also important.
It is evident that the cryptocurrency becomes popular all over the world. Stellar, in its turn, tries to ease all its transactions for users. This will make them available to everyone.