Stellar (payment network)

Stellar, or Stellar Lumens, is an open source, decentralized protocol for digital currency to fiat money low-cost transfers which allows cross-border transactions between any pair of currencies.[2] The Stellar protocol is supported by a Delaware nonprofit corporation, the Stellar Development Foundation, though this organization does not enjoy 501(c)(3) tax-exempt status with the IRS.[3][4]

Stellar
Stellar Symbol.png
Original author(s)
Developer(s)Stellar Development Foundation
Initial releaseJuly 31, 2014; 7 years ago (2014-07-31)
Repository
Written inC++, Go, Java, JavaScript, Python, Ruby
Operating systemCross-platform
TypeBlockchain
LicenseApache License 2.0
Websitestellar.org
Lumen
Denominations
Plurallumens
Symbol*
CodeXLM
Precision10−7
Subunits
110000000stroop
Development
White paperThe Stellar Consensus Protocol: A Federated Model for Internet-level Consensus[1]
Initial releaseJuly 31, 2014; 7 years ago (2014-07-31)
Development statusActive
Websitestellar.org
Ledger
Circulating supply23 billion
Supply limit50 billion

HistoryEdit

In 2014, Jed McCaleb, founder of Mt. Gox and co-founder of Ripple, launched the network system Stellar with former lawyer Joyce Kim. Before the official launch, McCaleb formed a website called "Secret Bitcoin Project" seeking alpha testers.[5] The nonprofit Stellar Development Foundation was created in collaboration with Stripe CEO Patrick Collison and the project officially launched that July. Stellar received $3 million in seed funding from Stripe.[6][7] Stellar was released as a decentralized payment network and protocol with a native currency, stellar. At its launch, the network had 100 billion stellars. 25 percent of those would be given to other non-profits working toward financial inclusion.[8][9] Stripe received 2 percent or 2 billion of the initial stellars in return for its seed investment.[10] The cryptocurrency, originally known as stellar, was later called Lumens or XLM.[11] In August 2014, Mercado Bitcoin, the first Brazilian bitcoin exchange, announced it would be using the Stellar network.[12] By January 2015, Stellar had approximately 3 million registered user accounts on its platform and its market cap was almost $15 million.[13]

The Stellar Development Foundation released an upgraded protocol with a new consensus algorithm in April 2015 which went live in November 2015.[14] The new algorithm used SCP, a cryptocurrency protocol created by Stanford professor David Mazières.[15]

Lightyear.io, a for-profit entity of Stellar, launched in May 2017 as the commercial arm of the company.[16] In September 2017, Stellar announced a benefits program, part of its Stellar Partnership Grant Program, which would award partners up to $2 million worth of Lumens for project development. In September 2018, Lightyear Corporation acquired Chain, Inc and the combined company was named Interstellar.[17]

UsageEdit

In 2015, it was announced that Stellar was releasing an integration into Vumi, the open-sourced messaging platform of the Praekelt Foundation in South Africa.[18] Vumi uses cellphone talk time as currency using the Stellar protocol.[19] Stellar partnered with cloud-based banking software company Oradian in April 2015 to integrate Stellar into Oradian's banking platform to add microfinance institutions (MFIs) in Nigeria.[20][21]

Deloitte announced its integration with Stellar in 2016 to build a cross-border payments application, Deloitte Digital Bank.[22] In December 2016, it was announced that Stellar's payment network had expanded to include Coins.ph, a mobile payments startup in the Philippines, ICICI Bank in India, African mobile payments firm Flutterwave, and French remittances company Tempo Money Transfer.[23]

In October 2017, Stellar partnered with IBM and KlickEx to facilitate cross-border transactions in the South Pacific region. The cross-border payment system developed by IBM includes partnerships with banks in the area.[24][25] The Lumens digital currency was ranked 13th in market capitalization at the time of the IBM partnership.[26]

In December 2017, TechCrunch announced Stellar's partnership with SureRemit, a Nigerian-based non-cash remittances platform.[27]

On January 6, 2021, the Ministry of Digital Transformation of Ukraine announced cooperation and partnership with Stellar in development of Ukraine digital infrastructure after which Stellar value increased by 40%.[28]

OverviewEdit

Stellar is an open-source protocol for exchanging money or tokens using the Stellar Consensus Protocol.[1] The platform's source code is hosted on GitHub.

Servers run a software implementation of the protocol, and use the Internet to connect to and communicate with other Stellar servers. Each server stores a ledger of all the accounts in the network. 3 nodes are operated by the Stellar Development Foundation, in conjunction with 21 other organizations, providing for a total of 66 validator nodes.[29] Transactions among accounts occur not through mining but rather through a consensus process among accounts in quorum slice.[30] The current network fee is 100 stroops, equivalent to 0.00001 XLM or 1/10,000th of a cent.[31]

Because Stellar Lumens are not mined like Bitcoin, it does not take a high-powered computer to run a node. All that is required is about the same processing power as running an email server, so it is common for companies that rely on Stellar to conduct their business to run their own nodes. Because they have a vested interest in Stellar performing optimally, these nodes are less likely to act maliciously on the network.[32]

See alsoEdit

ReferencesEdit

  1. ^ a b Mazieres, David (25 February 2016). "The Stellar Consensus Protocol: A Federated Model for Internet-level Consensus" (PDF). Retrieved 18 May 2021.
  2. ^ Ben Dickson (January 30, 2018). "Can blockchain democratize education? This startup seems to think so". The Next Web. Retrieved August 26, 2018.
  3. ^ "Stellar FAQ". Retrieved 15 January 2021.
  4. ^ Jillian D’onfro (31 July 2014). "PayPal's Cofounder Is Supporting A New Non-Profit That Will Tackle The Vision PayPal 'Never Accomplished'". Business Insider. Retrieved 23 April 2015.
  5. ^ "Mt. Gox, Ripple Founder Unveils Stellar, a New Digital Currency Project".
  6. ^ "New Bitcoin challenger launches".
  7. ^ Michael del Castillo (5 August 2014). "Stripe takes on bitcoin with rival digital currency Stellar". The Irish Times. Retrieved 20 November 2015.
  8. ^ "Payment processor Stripe helps launch a new currency, the Stellar".
  9. ^ "PayPal's Cofounder Is Supporting A New Non-Profit That Will Tackle The Vision PayPal 'Never Accomplished'".
  10. ^ "Stripe Backs Non-Profit Decentralized Payment Network Stellar, From Mt. Gox's Original Creator".
  11. ^ "2 Game-Changing New Cryptocurrencies With Serious Backing".
  12. ^ "New Digital Currency Aims to Unite Every Money System on Earth".
  13. ^ "Stellar rewrote the rules of cryptocurrencies. Now, users in Asia are leading its growth".
  14. ^ Cade Metz (8 April 2015). "An Algorithm to Make Online Currency as Trustworthy as Cash". WIRED. Condé Nast. Retrieved 23 April 2015.
  15. ^ Tom Simonite (April 15, 2015). "A New Competitor for Bitcoin Aims to Be Faster and Safer".
  16. ^ Jeff John Roberts (May 11, 2017). "Stripe-Backed Stellar Places a New Bet on Blockchain in the Developing World". Fortune. Retrieved August 26, 2018.
  17. ^ "Blockchain Startup Chain Merges With Stellar to Accelerate Use". Bloomberg.com.
  18. ^ Biz Carson (5 February 2015). "Stellar, South African nonprofit to bring digital savings to young girls". GigaOm. Retrieved 23 April 2015.
  19. ^ Tom Simonite (20 February 2015). "Bitcoin-Inspired Digital Currency to Power Mobile Savings App". MIT Technology Review. Retrieved 23 April 2015.
  20. ^ Karen Webster (2 March 2015). "Stellar and Solving the Unexpected Tragedy of the Financial System". PYMENTS.com. Retrieved 23 April 2015.
  21. ^ Paul Vigna (28 February 2015). "Stellar Takes a Step Into the Microfinance World". Wall Street Journal. Retrieved 23 April 2015.
  22. ^ Diana Asatryan (May 3, 2016). "Deloitte Taps Blockchain Startups to Build New Core Banking System". Bank Innovation. Retrieved August 26, 2018.
  23. ^ FORTUNE. "Stripe-Backed Stellar Kicks Off Worldwide Money Transfers". Fortune. Retrieved 2017-01-03.
  24. ^ "Stellar jumps 20% after Stripe says it may add support for the digital coin".
  25. ^ "IBM and Stellar Are Launching Blockchain Banking Across Multiple Countries".
  26. ^ IBM has a new blockchain for banks to speed up cross-border payments Ryan Browne, CNBC, 18 October 2017
  27. ^ Jake, Bright. "Africa's SureRemit joins the tokenized race to win the global remittance market". TechCrunch. Archived from the original on December 12, 2017. Retrieved August 28, 2018.
  28. ^ "Мінцифра співпрацюватиме зі Stellar Development Foundation над розвитком ринку віртуальних активів". Retrieved 7 January 2021.
  29. ^ "Stellarbeat.io - Stellar network visibility". stellarbeat.io. Retrieved 2020-05-23.
  30. ^ Tom Simonite (15 April 2015). "A New Competitor for Bitcoin Aims to Be Faster and Safer". MIT Technology Review. Retrieved 2021-01-01.
  31. ^ contributors, Stellar org and. "Transaction Fees, Minimum Balances, and Surge Pricing | Stellar Developers". www.stellar.org. Retrieved 2020-05-23.
  32. ^ "What is Stellar and How Does it Work? CoinFlip Explains". CoinFlip Bitcoin ATM. Retrieved 2021-08-23.

External linksEdit