**Stellar (XLM) Overview** Stellar (XLM) is a peer-to-peer decentralized network launched in 2015 by the Stellar Development Foundation (Stellar.org). The platform was designed to connect global financial systems, enabling fast, low-cost transactions for payment providers, financial institutions, and individuals. ### **Key Features of Stellar (XLM)** - **Native Currency (XLM/Lumens):** XLM serves as an intermediary for transactions, facilitating currency conversions and covering network fees. When a transaction occurs, funds are first converted to XLM and then to the desired currency, ensuring efficiency. - **Decentralized Ledger Technology:** Stellar operates on an open-source, community-owned distributed ledger, allowing seamless cross-border transactions with minimal fees and delays. - **Decentralized Exchange & Marketplace:** The network includes a built-in order book for trading Stellar-based assets. Users can manage buy/sell orders and select preferred settlement assets, with XLM helping reduce transaction costs. - **Security Measures:** - Users must hold at least one XLM to remain active on the network, ensuring efficient transaction processing. - Microtransaction fees deter spam and flood attacks, enhancing network security. - **Target Audience:** Stellar primarily serves individuals in developing economies, offering affordable access to global financial systems through fast, low-cost transfers. - **Multi-Currency Support:** The network enables cross-currency transactions, allowing senders and recipients to exchange funds in different currencies seamlessly. This is particularly useful for currencies without direct trading pairs. - **Anchors System:** Anchors act as bridges between traditional currencies and the Stellar network, simplifying exchanges and accelerating transaction processing. ### **Advantages of Stellar (XLM)** - Fast, low-cost transactions - Decentralized and open-source infrastructure - Secure and resistant to spam attacks - Support for multi-currency transfers - Accessibility for unbanked and underbanked populations Stellar’s technology aims to make global financial transactions more inclusive, efficient, and cost-effective. Jed McCaleb co-founded Stellar alongside lawyer Joyce Kim in 2013 after departing Ripple due to disagreements about the company's direction. McCaleb has emphasized that Stellar's core design enables fiat currencies and other forms of value to operate alongside crypto assets, which he believes is crucial for broader adoption. His vision for Stellar focuses on simplifying the process of converting fiat to crypto and reducing friction in global money transfers. Currently, McCaleb serves as Stellar's Chief Technology Officer and co-founder of the Stellar Development Foundation, a nonprofit dedicated to fostering economic growth by increasing financial accessibility, market openness, and individual empowerment. Fees are a common concern for many users. High costs in cross-border payments aren’t limited to traditional payment systems like PayPal—transaction fees on blockchains like Bitcoin and Ethereum can also surge due to network congestion. Stellar stands out by charging only **0.00001 XLM per transaction**. Since the price of one XLM is relatively low, this ensures minimal costs for users. Few blockchain projects have formed partnerships with major technology and fintech companies. Stellar collaborated with IBM to develop **World Wire**, a platform enabling financial institutions to process transactions on the Stellar network using bridge assets like stablecoins. While many blockchains have community funds to support ecosystem growth, Stellar takes a decentralized approach by allowing users to vote on which projects receive funding. The Stellar network initially issued 100 billion XLM when it launched in 2015. However, the total supply has since been reduced to 50 billion XLM, with a circulating supply of 20.7 billion. In 2019, the Stellar Development Foundation announced the burning of more than half of the cryptocurrency's supply. As a result, the foundation now holds roughly 30 billion XLM. A portion of these funds is allocated for marketing and organizational development, while about one-third is reserved for investments in other blockchain projects. The foundation justified this decision by stating that reducing the supply allowed it to operate more efficiently while still fulfilling its mission. It also confirmed that no further XLM would be burned, explaining that the removed tokens were not contributing to Stellar’s adoption. The network is secured using the Stellar Consensus Protocol (SCP), which offers four key features: decentralized control, low latency, flexible trust, and asymptotic security. SCP allows anyone to participate in the consensus process while preventing any single entity from gaining majority control over decision-making. Transactions are confirmed quickly and at low cost, typically within seconds. The protocol also includes safeguards to mitigate risks from malicious actors attempting to join the network. You can purchase Stellar (XLM) on several major cryptocurrency exchanges, such as Binance, Coinbase, Kraken, Bittrex, Bitfinex, Upbit, and Huobi. Some users prefer converting fiat currency into Bitcoin first before acquiring altcoins. For more details on this process, refer to our guide on buying Bitcoin. *(Note: Links have been removed to comply with the request.)* **Stellar** is an open network designed for moving and storing money. Initially launched with the goal of increasing financial inclusion by serving unbanked populations, the network later shifted its focus to helping financial institutions connect through blockchain technology. The native token of the Stellar network, **lumens (XLM)**, acts as a bridge to facilitate low-cost cross-border asset transfers. This functionality positions Stellar as an alternative to traditional payment providers, which often impose higher fees for similar services. Notably, Stellar was originally derived from the Ripple Labs protocol. Following a hard fork, the blockchain's code was rewritten, establishing it as an independent network. The Stellar Development Foundation (SDF) has strengthened its collaboration with MoneyGram, a traditional payment processor, and established new partnerships worldwide. MoneyGram and SDF introduced a unique global "crypto-to-cash" service on the Stellar network, enabling seamless conversions between digital and traditional currencies. This service leverages the Stellar blockchain, Stellar-compatible digital wallets, MoneyGram’s retail agent network, and USD Coin (USDC). It allows users in key remittance markets—such as Canada, Kenya, the Philippines, and the U.S.—to access cryptocurrency through fiat transactions, with plans to expand to additional regions. The initiative builds on a partnership formed between MoneyGram and SDF in October 2021. According to SDF, this service represents a significant advancement in connecting physical and digital currencies globally. SDF emphasized the project’s potential to enhance financial inclusion by creating interoperability between cash and digital assets, enabling broader participation in the digital economy. Beyond this project, SDF and MoneyGram have also partnered with Techstars, a global investment firm that supports entrepreneurs through funding, mentorship, and tailored programs. Together, they aim to launch an accelerator program focused on startups developing technologies to improve cross-border money transfers, particularly in Latin America. The Stellar Development Foundation (SDF) has established partnerships with several companies, including Flutterwave, Nium, WhiteBIT, Coinme, Mercado Bitcoin, and OKCoin. It has also collaborated with government agencies, such as the central banks of Brazil, Ukraine, and Indonesia, as well as the Bank for International Settlements (BIS). These partnerships align with Stellar’s roadmap to enhance global cryptocurrency adoption in traditional cross-border payments. The roadmap also outlines the network’s focus on testing capabilities related to trust-minimized innovation, interoperability, and inclusion. Stellar aims to explore ways to achieve the objectives outlined in its roadmap during its annual Meridian conference, where it will also plan future initiatives. (Note: Links and time-specific references have been removed to maintain an evergreen format.) Learn more about XRP, the cryptocurrency that XLM originated from. Explore insights from Stellar’s Jed McCaleb in an interview discussing regulatory clarity in crypto. For educational resources on cryptocurrencies, visit DroomDroom. Discover additional interviews and articles on crypto topics.