What is Stellar (XLM)? | Learn

What is Stellar?

Stellar is a blockchain based decentralized network that is built to facilitate cross-border payments and asset transfers. Jed McCaleb, the co-founder of both Mt Gox and Ripple, created Stellar. Following his departure from Ripple, he initiated the Stellar protocol by forking the Ripple codebase.

Stellar was created to innovate the global method of transferring assets and currencies. This innovation encompasses diverse functionalities, from serving as a means of payment to functioning as a financial exchange.

The Stellar network incentivizes individual networks of computers to run a software that enables anyone to send funds and assets in ways that have usually been handled by payment providers. In contrast to Ripple, Stellar seeks to establish itself as a sort of decentralized marketplace, maintaining an internal order book that records the ownership of XLM. Within the Stellar system, users can trade these assets with one another through the XLM digital currency.

What is XLM?

XLM is the native asset of Stellar, with a maximum supply of 50,001,787,237. This asset is required to pay transaction fees on the Stellar network.

How Does Stellar Work?

Stellar is powered by the Stellar Core which is the software that maintains the Stellar ledger to validate transactions on the network.

Unlike Bitcoin’s Proof of Work (PoW) or Ethereum’s Proof of Stake (PoS) protocol, Stellar uses the Stellar Consensus Protocol (SCP).This protocol stands out, as it does not necessitate approval from every miner in the network for a transaction. Instead, it employs the Federated Byzantine Agreement algorithm, a method that enhances the speed of transaction processing.

Why are people interested in Stellar (XLM)?

People are attracted to Stellar and its asset, XLM, due to its efficient and cost-effective approach to global transactions. Stellar's unique consensus protocol offers faster processing without needing approval from every miner in the network. As a decentralized marketplace that allows various assets to be traded with its digital currency, XLM, Stellar offers a versatile and practical solution that appeals to individuals and financial institutions.

If you’re looking to buy and sell XLM you can do it with the benefits of a tax-advantaged crypto IRA at iTrustCapital!

Create an account and log-in today!

DISCLAIMER

This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.

iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not associated with and has no direct relationship with XLM. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.

Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.

Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.

iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.